Once there, he naturally bought a lense, flash, case, carrying strap, film, filter, etc. Back in the dorm, he ruefully added things up and compared again and found out he'd paid, in aggregate, top dollar!
An awful lot of analysis and variables go into setting prices, and whether an item is in-store or online is just one factor.
Is it not well know that addons have the greatest markup?
If this isn’t the appeal of walmart, what is?
Not always... I bought something on Amazon last week and the 3rd party seller drop shipped it from Sam's Club (wal-mart). I saw the packing slip, looked it up on samsclub.com and realized I had paid 20%/$4 more at Amazon than they paid at Sam's Club.
Amazon has a great price on a lot of things, which has taught us to think they have a great price on everything. Amazon also takes at least one day to get something to your house. If you need something immediately, that's where retail wins every time... it doesn't even matter what the price difference is.
Seems like a good way to influence consumer sentiment in places that won't play ball with you, if you're an abusive plutocratic organization.
I'm becoming increasingly wary of buying things on Amazon. I've received bootlegs from listings that looked genuine, fallen prey to misleading reviews for things that turned out to be of substandard quality, and so on. And it's been getting worse over the last couple of years. And this is even with "fulfilled by Amazon" items. They're not good at policing their reviews or listings for accuracy, and it often turns out that the same listing might get you different products between different orders.
I've bought from Walmart online only once or twice ever: in one case they had the camera I wanted for $250 cheaper than Amazon and in another Amazon didn't have the product at all.
Experimenting with offline prices and measuring its impact on sales is hard. Doing it online is very easy. You can even show different prices to different users and gather information about their shopping throughput.
Thinking that a company's ultimate goal is to increase profits, it's easy to see why they would want to do this.
So if you see something that costs $5 with multipack options of 3-4/$10...well, there you go.
And you too can make any product available to a huge audience with 2-(ish)-day shipping...no wonder they're going like gangbusters.
Stores always price one or two common items super cheap to get you in and figure you'll buy everything else once you're there.
It was about two Logitech gamepads for ~15€ less overall.
My point was, the two aren't tied together.. they're usually completely separate operations.
If a competing store in the area has a sale on an item, target (for ex) will mark it down too.
But that has nothing to do with the online website... the website doesn't care what the local price is.
Convenience. If you are willing to pay an extra $1 on toothpaste to avoid walking 50 ft, it’s worth another $1.
Physical stores still make money: especially WalMart, which tends to cater to lower income groups which may not even be shopping online. And they don't have the online volume yet to reduce the prices as much as someone like Amazon.
(Source: have been to Walmart and have browsed their website)
Also it looks like they have/are changing their slogan, I did not read more to confirm... Just googled to confirm the slogan.
I get that that doesn't match your experience after 15 years of Amazon.com being cheaper than stores, but there are clear reasons for that and those reasons have been going away.
Tax treatment has been equalizing, Amazon is now charging VAT in a different (much more fair) way, and there has been action against the abuse of international and interstate postal agreements to get free or absurdly cheap deliveries.
I don't find it hard to believe that there's plenty of cheating going on, but I'd bet online will still win in the future. Workers are being replaced, while well located real estate is only getting more expensive.
Point taken, although I do think Walmart still wins in terms of labour conditions.
No more orders from me.
No idea why they would do this - aren't they trying to compete with Amazon? They are only hurting themselves now.
I do still go to their stores every other month and try to stock up. Maybe that's what they want.
But they are no longer an internet company to me. And long-term I think that is foolish.
I wish Amazon grocery prices were competitive. But they like brand names too much, and I avoid those usually.
What I usually do is go through their website for things I want to order, note their prices, and then go to the store. Anything on the list that's cheaper in the store I'll buy. I'll then purchase the remaining items from their website.
Given Discover's promotion of 5% back on online purchases from Walmart.com, it works out for me.
they had a 15% off your first three purchases sale, saved me some money again when I had to get a new HDD around the same time.
it got me to pull the trigger on their site over newegg, and I liked the little discounts you can get by paying with debit or forfieting free returns. it's a novel approach, and at least tries to appear consumer-friendly. I hope it does well.
In fact, if they add x% to most products, requiring it to be over $25 is just a way of guaranteeing that you are actually paying for shipping in full, just not as an itemized option.
For example, let's say a widget costs $10 in Walmart stores and will cost $1 for walmart ship with their negotiated contracts. If I go to the store, I can pay $10 and buy the widget. However, if I go online, Walmart.com will say the item costs $11 with "free shipping", or I can pick it up in store for a $1 "discount" (so now I pay $10 for a "$11" item). So even though they get all the positive PR and subconscious biases associated with free shipping, they are not paying for it at all. They even pretend like you're getting a great deal by going and picking it up yourself, even though you're just paying what you otherwise would have if you skipped walmart.com entirely.
What's the difference between the profit they make from the products, and money they make from extra cost added to the products? Isn't that just another way to define profit?
Somehow the fact that Amazon and Ebay have different prices for the same items in their online listings seems to shed some light here, but I'm not really sure exactly how or why.