How Retailers Concoct ‘Bargains’ For The Holidays November 26, 2013

The common assumption is that retailers stock up on goods and then mark down the ones that don’t sell, taking a hit to their profits. But that isn’t typically how it plays out. Instead, big retailers work backward with their suppliers to set starting prices that, after all the markdowns, will yield the profit margins they want.

We hanker for coupons. We fall for “the deal.”
(Even when the savings aren’t real.)

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