Advertising Question

[Will]

Ive heard this via radio spots and sometimes on tv commercials and Ive never understood this...

Theyll blow smoke up your ass about this hot sale they have going on stuff and theyll get to an item or whatever and say the price is so low, we cant legally say what it is etc etc..or some crap along those lines.

At what point did it become illegal to sell at "super low" prices?

 

[speedracer]

Retailers will often enter into deals with suppliers or vendors in which the retailer agrees to sell a product for an exact price. Sometimes exceptions will be made so the retailer can empty out back stock or some other reason. The supplier/vendor will allow the lower price, but not allow them to use the lower price in advertising because they feel it will hurt the marketing position of the brand.

I've often suspected that this is used to drive people to put it in their "cart" as a way of driving sales and that it's not contractually required to do so, but rather it's just another marketing tool used by retailers.

 

[Will]

Ahhhhhhh...sounds like a good reason. Much appreciated.

 

[yourlefthand]

I have also heard (most recently from SHC-gamer in the kmart clearance thread) that there are also "minimum advertised prices" on many new(ish) items. They can sell items for less, but they can't advertise that they are doing so, or advertise a lower price.

 

[DuelLadyS]

That's excactly it, actually- I was looking at some items on Amazon where you have to put it in your cart to see the price- when you click the 'why?' link, it says the sales contracts don't let them advertise prices below a certain point.

Here's one such item, if you want to read Amazon's blurb (it's in a pop-up window, I don't know how to link directly to it.)

 

[IAmTheCheapestGamer]

[quote name='DuelLadyS']That's excactly it, actually- I was looking at some items on Amazon where you have to put it in your cart to see the price- when you click the 'why?' link, it says the sales contracts don't let them advertise prices below a certain point.

Here's one such item, if you want to read Amazon's blurb (it's in a pop-up window, I don't know how to link directly to it.)[/QUOTE]

LOL Is that camera you linked to being sold by WalMart? That's their idea of a 'low price'($3 and change off MSRP).

Most of these 'so low we can't tell you the price' sales ads are so fulla shit it ain't funny. You get there expecting this insane deal and it's like $20 off of normal price.