Final Markdown: cracking the retail code
By: Melissa Randall
@MRandallABC6
Price tags at many of your favorite stores actually give shoppers clues about the deals they are getting. The information is hidden in plain sight. You just have to know how to crack the code.
“Knowledge is power. It just makes us a more informed consumer. It gives us the information to choose when its right to buy for ourselves or family to stretch our dollar,” said Kristen Regine, a professor of marketing at Johnson and Wales University in Providence.
Savvy shoppers can save big bucks thanks to former employees and code crackers at websites like www.ratherbeshopping.com, who are revealing store secrets.
Let’s start with Target where it’s all about the decimal point. Prices ending in .99 mean you are paying full price. If they end in .98, .88, .04 or .24 that means it’s a marked down clearance item. Also, keep an eye on that tiny number in the top right hand corner. It indicates the percentage off. The higher the better!
At Kohls the letters in upper right hand corner of the digital displays clue you in. "NM” means new markdown. The product will be going on clearance or sale that night or the next day. "GV" stands for great value. The price has dropped for a limited time. And "S" is sale.
Doing a renovation or big project? The magic number at Home Depot is 06. Items ending in that will be marked down again in 6 weeks. Prices ending in .03 are the best deals, and will be gone in 3 weeks!
Now that you know the code, you also need to be aware of the risks.
“The gamble is that I may be willing to buy it at 50% were you may wait to 70%, so I’ll swoop it up before you do,” explained Regine.
Something else to keep in mind before going to the cash register is that major retailers tend to change their pricing strategies frequently. Just because the code works today doesn’t mean it will be true the next time you go to the store. That’s why Regine, who worked in retail herself for 10 plus years, says befriending store employees may actually be the best tip of them all.
“We would get notice of when our markdowns were going to be, and when we built those relationships with regular consumers who we wanted to come back and see on a regular basis, we would let them know, hey this item is going on mark down tomorrow. Here is what we can do for you,” said Regine.
All 3 retailers ABC6 News visited would not confirm the code. Target did however issue a statement saying in part that the company uses a number of different factors to determine the price for an item, and that it is not possible to determine the final markdown or timing of the price change from the items current price. Kohls declined our request for comment saying it considers pricing strategies proprietary. Home Depot never responded.
Insiders say they have cracked the code at other stores, too.
Sears: Prices ending in .99- full price. Prices ending in .97- discontinued item on clearance. Prices ending in 88- final markdown, price.
Office Depot: Prices ending in 1- first clearance markdown price. Prices ending in 2- second clearance markdown price. 3- third clearance markdown. 4- final clearance markdown.
Sam’s Club: Prices ending in 1- sale. A- active item. N- never sold-out. C- canceled item (your best value)
BJ’s Wholesale Club: Prices ending in 9- full price. Prices ending in .90 or .00- managers special- discounted 10%.
Gap & Old Navy: Prices ending in .47, .49, .97 and .99- discontinued or clearance items.
© WLNE-TV 2016
