From the day that we opened K.Hollis Jewelers almost 12 years ago, we have offered a “fair pricing policy” that we believe is the right way to price everything in our store. Our policy is based on a couple simple ideas; 1) we want to be genuine in everything we do; 2) our prices are marked up in a reasonable way that allows us to provide a high level of service and to stay in business; 3) no gimmicks – this means we won’t mark up the price of an item before we put it on sale; 4) when an item is on sale it should really be on sale; 5) our customers shouldn’t feel they have to wait for a sale, they should feel that our prices are fair every day; and 6) we’ll price match. Simple, right?
Quick example… I saw a 16 inch 14K 0.5mm white gold chain at Kohl’s with a MSRP listed at $245 and on sale for $95. We carry the exact same chain at K.Hollis for $79. It’s common for department stores and “big box” jewelers to run a never-ending series of sales. This is a challenge for us at times, but we are committed to running our business in a fair and genuine way. We feel this is the best way serve our customers.
In a January 7, 2016 Money Magazine article by Brad Tuttle titled, “More Retailers Accused of Misleading Customers with Fake Price Schemes, Mr. Tuttle describes the reasons that retailers like Macy’s, Bloomingdale’s, Kohl’s and Sears are defendants in a lawsuit:
“Macy's and Bloomingdale's have also been hit with a class-action suit accusing them of duping customers with sham original prices. The suit accuses the stores of engaging in a "phantom markdown scheme," and of "purporting to offer steep discounts off of fabricated, arbitrary, and false former or purported original, regular or 'compare at' prices." Here's one of the key parts of the suit:
In some instances, they represented that the listed or original price was two or more times the manufacturer’s suggested retail price (“MSRP”), and then offered the item at a purported 50% or more discount price which was in fact the original MSRP.
In other words, a 50% off sale is nothing special whatsoever, assuming the accusation above holds true. In this bizarro-world scenario, 50% off is actually the real price, while the original price is some pie-in-the-sky figure that exists solely to give shoppers a false impression of the item's value.”
The suit is still in process so we don’t know what the outcome will be, but it’s important to know that sales and discounting is complicated. 50% or 70% may not be what it seems.