-Caveat Lector-

Reminds me of something I learned in a Marketing class I took at a local
community college back in the 70s...

(That college had some really good teachers, people who came from 'the real
world' as opposed to the elite academia one found at the 4-year colleges in
the area, and these community college teachers quite often ignored the
required textbook and taught from their own real-life experiences)...

Anyhow, this Marketing teacher actually worked in advertising and marketing
and only taught part time, and one of the things he stressed to us was the
scam of supermarket coupons, of which the present-day 'bargain cards' are I
feel a variation...

And the bottom line was that not only the retailer (the supermarket chain),
but the manufacturer artificially inflate the price of an item to then
offer a 'discount' via coupons (or by the modern-day equivalent of the
'bargain card')....

In other words, a bottle of dishwashing detergent may only be worth 98
cents, and that is factoring in profit for both the manufacturer AND the
supermarket chain; but both wish to entice shoppers with 'sales', so the
manufacturer may tack on 50 cents, requiring the supermarket to charge at
least $1.48 for the bottle, unless the manufacturer itself offers sales
coupons on the item.  But the supermarket is free to tack on ADDITIONAL
charges, so the store may actually usually sell the stuff at $1.78 and
occasionally offer it 'on sale' for $1.48...

But remember, the stuff at 98 cents a bottle still makes a profit for both
the manufacturer AND the store; the manufacturer could offer a 50-cents-off
coupon at the same time that the store could offer it's additional 'sale'
(or require clipping a coupon from its weekly flyer) offering an additional
30-cents off; a shopper with both coupons would get the bottle for 98 cents
and think they just got a huge bargain.

The modern-day 'bargain card' is just a replacement for traditional
coupons; and as my teacher explained, if there weren't any coupons (or
'bargain cards'), prices would naturally be lower, as there would be no
need to artificially inflate prices to make up for occasional 'sale'
prices.  But just as 25 years ago it was a losing battle to convince people
to give up clipping coupons so that prices across-the-board would go down,
so to is it today in trying to convince people that they really aren't
saving money with the so-called 'bargain cards'...

Another thing we learned in that class was that coupons were only directed
to those in the middle and upper classes -- in other words, coupons were
very rarely available to those living in the inner city, or printed in
papers read by people deemed to be in an economic stata below 'middle
class'...in other words, the people who could most benefit from getting
'discounts' at the supermarket rarely had the opportunity to do so.  I
suspect that these 'bargain cards' are marketed in the same manner...



June

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