When both Hancock and Moore as well as Bradington-Young rolled out their most recent price increases, they proudly announced that the were increasing the Suggested Retail by a higher percentage thereby allowing the dealers to proclaim even deeper discounts off list price. Now instead of 40% off list, a store can say its 50% off list and the customer will be more likely to buy!

News like this I greet with the enthusiasm of a mildewed dish towel. I ask "Have you changed the wholesale cost so its less money to the dealer?" "Do you think customers are really that naive that they can't figure it out?" "Why does this industry persist in printing up a book of 'fairy tale prices' that have no more basis in fact than that diamond ring in the jeweler's case that is always 50% off?"

I am always greeted with the same answer. "Because the other dealers want it."

You know what I do with my retail price books? Most the time I throw them away, or deep file them in the cabinets. Why would I insult a customer by telling them "That sofa lists for $ 9,000 but if you buy it today during the 65 % Off List Sale it will be $ 3,150 but only if you act by close of business of the sale period."

Know what? That sofa will be $ 3,150 every day of the year at my store, and never have a red SALE tag attached to it. I like to think my customers are smart enough to not need that, and have done their homework ahead of time. Its a pretty good pricing model, it works for Costco and they seem to have prospered.

The funny thing is Bradington Young never has a sale. They charge the dealers one price all year long except for market specials that require the dealer to floor the piece. Hancock and Moore likewise, but they do offer an additional 5% off in August and February every year to dealers in good standing on non Town and Country items. Guess most people just can't get excited about saving 5%....but thats the reality of it all.

I only keep wholesale dealer price books at my desk. Makes it easy to look up prices, I add a fixed percentage to the dealer cost for a selling margin, and that becomes the selling price. No silly games, no red tags, and no hanging on everything ending in a "9" . You may get a sofa quote for $ 1,302.00 because that's how the numbers shake out, and I won't make it $ 2,999.99 to make it appear sweeter (really, does anyone buy off on that?).

I do have a very small percentage of customers who can't buy something thats "On Sale". They have to see the tag. I usually send them down the road to Colony House in Arlington VA or over to Belfort Furniture in Chantilly, VA where they have LOTS of red sale tags on everything. After they make that trip, they come back and say "you really do have better prices than their sale prices, how do you do that?"