Sunday, November 27, 2016

Department Stores Lure Black Friday Shoppers With $19.99 Women’s Boots


When we think of Black Friday, we think of people clamoring outside of electronic stores such as Best Buy to get that rock bottom price on a new TV.  The electronic store chains have been wildly successful in drawing in customers with amazing promotional pricing for a very coveted item.  Now department stars may have found their similarly compelling product and pricing as Belk Inc. in partnership with Kohl’s, Macys and JC Penny is promoting a “Door Buster” price on a ladies boots starting at $19.99.  Price promotions can be a very powerful tool to attract customers in to purchase other items.  ES Originals Inc. a shoe importer actually came up with the idea of the $19.99 boot. Their CEO explains that “When a lady can walk in with a $100 and buy five pairs of boots, they are going to recognize this as a good deal”.  The company is fine recognizing these boots as a loss leader. The intent is to attract the customers to the store so they purchase other items.  The interesting international component of this story is that the boot makers are located in China.  In order, to help drive down the costs of the boots so that they could be sold at $19.99 ES originals CEO made several agreements with the manufactures.  The first being that he would have the boots made in the manufactures off season and store them in his own warehouse.  Also by buying one big bulk order for all the retailers ES originals was able to get further cost concessions.  The $19.99 boot deal has been running for several years now and with is continued success there is no end in sight. 

1 comment:

  1. Great article! This is so true! I would go buy a pair of those $19.99 boots. Price promotions are a very powerful tool to attract customers, especially women.