Price Wars: Good or Bad?
Wednesday, October 28, 2009 at 11:19AM MAD21 By Heather, CPA (Balance with Purpose)
What do all of the price wars on books and slashed prices on toys at our favorite retail superstores mean? Are these drops in prices good for the economy? Or are they simply good for consumers?
Well, I could rant about how I think Amazon is shooting themselves in the foot by trying to compete with Wal Mart on book sales or about how bad this price war between Amazon, Wal Mart and Target is for the book publishing industry, but that’s not the point I want to make here. If you want to read a detailed analysis of that subject, head over to Michael Hyatt’s blog for his complete opinion. It’s dark and discouraging, by no fault of his. He only tells the truth.
Then there’s the news that Target recently slashed the prices of many popular best-selling toys by 50%. This came after Wal-Mart decided to offer 100 of its toys for $10.
The large retailers are already panicking about projected sales for this holiday season and the ghosts and goblins haven’t even hit the streets yet. The large chains like Target and Wal-Mart are slashing the prices of some items in order to entice the consumer into their store to buy other everyday products that they need (and perhaps some they don’t).
What does this mean to you and me? I think it means that if we’re smart about our holiday lists and plan ahead, we will save some money this holiday season.
It’s October 28, and although I’ve never been one to shop early, I’m considering it this year. I’m thinking I’ll pre-order Stephen King’s latest book for my husband only available for pre-order right now for $9 (that’s $26 off list price), and I’ll definitely pick up some toys my children want for fantastic prices. While I’m at it, I’ll pick up the clothes detergent and bathroom cleaner that I need anyway.
The key to saving money this holiday season is to watch for the items that are marked down, but don’t use that as an excuse to buy the things you don’t need. Retailers are hoping to, for lack of a better word, trick you, not treat you this year. They hope that you will love their gift of low prices so much that 1. You’ll come to their store to shop, and 2. You’ll spend your “savings” on other impulse buys – not dishwashing soap and shampoo.
Although I’m not seeing how this will help our economy, I can’t help but be excited about how it will help my bank account.
What do you think? Are you excited about the price wars and slashed prices? Or does it make you more nervous than ever?
Heather Sunseri is a Christian, wife and mother of two young children. She has worked as a CPA for the past 15 years for thoroughbred horse farms and in public accounting in Central Kentucky. She spends her free time as an inspirational writer and enjoys the little things in life from long bike rides in the country to homemade pizza and family game night.
Reader Comments (2)
Great post, Heather. I don't know the long-term effects of all the things going on with the economy. I pray it works out for good in the end. In the mean time, I too am going to take advantage of the lower prices. Christmas is coming!
Me, too, MAD21. I'm super excited about deals this Christmas and plan to take advantage of the ones I NEED.