The Issues of Pricing at Big-Box Stores: Sales to Price Hikes

Price Hikes for Business Supplies & More

Anyone who sells things online is no stranger to sales; marking down prices is a great way to entice shoppers into buying a few extra things. Small businesses and big-box stores alike can benefit greatly from sales, but some big-box stores take things a little too far. Some of these stores mark down prices to bring in customers, only to dramatically increase prices a short while after the sale concludes in order to maximize profits. Read about why this is not a great practice, and see why CMF avoids it entirely. 

A Detailed Look Behind The Practice 

Rising Stack of Coins

The practice of instating very low prices to attract new consumers is known as penetration pricing. Through this method, physical and online retailers will mark down prices on products that are in high demand. This entices people to shop with them over competitors, since the lower prices are seen as more attractive.

After about thirty days or so, some retailers plan to raise the prices back up in order to make additional revenue. Normally this is not a problem, as long as the price increase is reasonable. However, some retailers put up dramatic price hikes an attempt to profit off their newer customers.  

Some will complain about the prices being too high and will look elsewhere, but others are willing to pay, since they trust the retailer and enjoy the products offered, regardless of the price tags. 

The Issues with the Strategy

Person Holding Money

On paper, this sounds like a prime way to make some extra money from new customers, and as long as the price increase is not too dramatic it really should not be a problem. The main issue is that by setting the price too low you are setting a standard for how people view your pricing strategy.  

By starting with very low prices, people expect prices to stay low, and when they start going back up customers start getting upset. If you raise the prices too high, customers might think you are trying to take advantage of them, and this can hurt your public image. 

In addition, when you raise prices too high it may appear as though you are betraying the smaller companies who liked the lower prices you offered. Say that a small business started working with a particular big-box retailer because its lower prices made it easier to acquire the necessary office supplies. After the price hike, the business may not be able to reasonably afford the products anymore, and this can put the business in financial trouble. 

CMF Prices Fairly 

CMF Business Supplies does not employ this business tactic, and strives to offer fair pricing to all consumers. Our goal is to make sure all our customers can get the office supplies, office furniture, and other products they need without going over budget. When you shop from CMF, you can expect to find low and fair prices all the time. 

We strive to learn about clients and their financial situations, which allows us to find them great products they can afford. In addition, we offer no shipping or handling charges, so you never have to worry about additional expenses. Our competitive prices ensure that everyone can get just what they need, and you never have to worry about us setting up a price hike out of nowhere. 

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