brick & mortar and e-commerce pricing

Yesterday i was doing a little product research on something I wanted to buy.  I looked at a couple of the reliable online sites to understand the models out there and the general pricing.

Then, while at lunch, I visited a nearby store that sold the product at 150% of the online price.  Needless to say, I didn’t buy it.

Returning back online, I found an online retailer with a brick & mortar location here in San Francisco with a great price.  So after work I made my way over to the store only to find that their price was too at the 50% markup.  What gives?logo

I talked to one of the sales reps at the store who informed me that they couldn’t match the online price (the registers would blow up was the phrasing he chose) but that I should remember that online charges shipping (and since they have a local presence, sales tax too).

I went home and bought it online.

I don’t understand a company that won’t:

  1. have consistent pricing.  OK, fine, I get that it costs money to have that item on display in San Francisco instead of in a warehouse in Nevada (or wherever) so I understand that you need to charge a markup so..
  2. meet internet pricing when asked – at least for the savvy shopper, allow for some flexibility in pricing at the register.  If not, at the very least..
  3. have a reasonable markup for the convenience.  Charge a reasonable (10%) markup for the convenience of walking out of the store right then and there with the product instead of having to wait for UPS.

The idea that this store wanted to charge me 50% more for that convenience was ridiculous.

With more and more information literally at peoples’ fingertips (think iphone) the idea that you can count on the un-informed shopper stumbling into your shop and unknowingly spending a 50% markup has got to be short-lived.

Doesn’t it?

Leave a Reply