Retailers love advertising massive sales, but what if those discounts aren’t as real as they seem? Many stores use a tactic where they first raise the price of an item, only to later mark it as “on-sale” for what is essentially the original price. This deceptive pricing strategy makes customers believe they’re getting a bargain when, in reality, they aren’t saving much at all. As inflation continues to impact shopping habits, more consumers are paying closer attention to how retailers price their products. Here’s proof that some retailers are manipulating prices before discounting them and how you can avoid falling for these fake deals.
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1. The Artificial Markup Before a Sale
One of the most common pricing tricks retailers use is artificially inflating an item’s price before putting it on sale. For example, a jacket that typically sells for $100 may be marked up to $140 for a short period, only to later be “discounted” to $100 again. Because shoppers see a large percentage off, they assume they’re getting a deal when, in reality, they are just paying the regular price. This tactic is common during major sale events like Black Friday, where retailers create the illusion of deep discounts.
2. Price History Tools Reveal the Truth
One of the best ways to prove that retailers manipulate prices before discounting them is by using online price trackers. Websites and browser extensions like CamelCamelCamel for Amazon or Honey’s price tracker allow consumers to see an item’s pricing history over time. These tools often reveal that an item’s “sale” price is the same or only slightly lower than its average price. If a product has fluctuated in price significantly right before a major sale event, it’s a sign that the discount may not be as good as it looks.
3. Retailers Are Frequently Fined for Misleading Pricing
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This pricing tactic is not just deceptive—it has also led to legal consequences for some major retailers. Several well-known companies, including Kohl’s, JCPenney, and Michael Kors, have been sued or fined for misleading discount practices. These retailers were found guilty of marking up prices before putting them on sale, tricking customers into thinking they were getting a good deal. While many companies continue using this strategy, consumers are becoming more aware and fighting back against deceptive pricing.
4. The “Compare At” Price Trick
Another common tactic retailers use is the “compare at” pricing trick. This is where stores list a higher “original” or “manufacturer’s suggested” price to make their current price look like a discount. However, that “original” price may never have been the actual selling price in the first place. Many discount stores, including outlet malls and online marketplaces, use this tactic to make deals appear better than they are. If you see a large discount, always check competitor prices to ensure it’s a real bargain.
5. How to Avoid Falling for Fake Discounts
The best way to avoid falling for fake discounts is to research prices before making a purchase. Use price comparison tools, check a product’s price history, and be skeptical of extreme markdowns. If a store claims an item is 50% off, but you’ve seen it listed at the same price before, it’s likely a fake discount. Shopping at reputable retailers that offer transparent pricing and genuine sales can also help you avoid being misled.
Retailers have long used deceptive pricing strategies to make customers feel like they are getting a bargain. By marking up prices before putting them on sale, stores create the illusion of deep discounts that may not exist. Using price tracking tools and comparing prices before buying can help you spot these tricks and avoid overpaying. Being an informed shopper ensures that you’re truly saving money rather than falling for marketing gimmicks.
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