Sunday 12 February 2012

J.C.Penney’s New Pricing Philosophy

Penney’s are a mid range US department store and their new CEO has introduced a pricing philosophy that does away with the old WAS/IS pricing regime.
Rather than marking up and then marking down, Penney’s are saying “Let’s stop treating our customer’s like fools”. It’s nonsense to pretend the right price for an item is $20 when it is going to sell on sale for $10.
Customers are shown the best price and allowed to make up their own mind whether it is good value.