Target Stores - Different Prices For Different People

And they wonder why people are shopping more and more online. Of course they can tell where you are as soon as you open an account.

This s really greedy corporate America at its best.

Remember the restaurant back east that decided they were going to let people pay what ever they thought the meal was worth based on what the could afford?

That made big news when they stated but then we never heard any more about it. My guess is the idea flopped bigtime.

(Note to self: Stay out of Target)

Online is no different. You can find the same item at a dozen different places with a dozen different prices. Retailers have been tailoring prices based on economic factors and cost of doing business for a long time. You have to do your homework when shopping. In the old days, you had to haggle. Now, you have to do a little research.

There is always more than one way to frame an issue. For example - rather than charging more at an upscale neighborhood, they charge less in neighborhoods that can't afford to pay as much.

Perhaps each store is responsible for recovering the costs of real estate, taxes, and utilities of their particular store, necessitating higher retail prices in high rent districts. And as for online prices - they will be consistent except for taxes and shipping, so even then you'll see a cost differential.

This past year on a road trip I stayed in several different Best Western hotels. Prices varied from $89 to $179 for a single night stay. Some areas are just wealthier than others.

** Mary Lee Dereske

@Dan: Gasoline stations have been pricing this way for decades. I pass multiple Exxon stations on an eight mile drive along a highway in my area and they all have different prices. NYC gas stations charge different prices within blocks of each other. I put this in the same category as subscription base services like Photoshop - I don't particularly like it but it is the way all business is going if it fits their sales model.

@Floyd: The restaurant I believe you refer to is "Soul Kitchen" in Red Bank NJ: http://www.jbjsoulkitchen.org/en. As you can tell from the web site Jon Bon Jovi started it and operates it as a foundation. I know it is still there because I do much of my photography in Red Bank and pass by it frequently.

Yup gas is priced by zipcode.

Walmart often has the highest prices on certain items. They'll have great deals on the end caps but then make it up on little items that you don't price compare.

Yupp, gas stations are the best example. A town I pass through there is a 30 per gallon price difference between the two gas stations on the major highway and all the others in town. Well, there is in spring and summer when the tourists use that route back and fourth to the beach. Between October and March they are priced within a couple cents of the rest.

It is what the market will bear. And Mary Lee could be in public relations as it really is how you frame/spin it.

That's true of most chain stores; demographics are everything!

I worked for a market research firm right out of college and we were tasked with buying toilet paper at every supermarket in the area. Had to record the prices. Never varied more than 5 cents a roll. Sometimes the ideas that one store is amazingly cheaper than the next is just an illusion.

No different for artists either. Prices in an upscale galleries in resort towns are much higher than in galleries in the suburbs. It's just business, nothing greedy about it.

i never shop there. crummy quality and nothing i like is there. they just expanded into a food section - its huge. but prices are too high, the prices are better elsewhere and they have very few brands. i don't remember when it was when i was there last.

---Mike Savad
http://www.MikeSavad.com

If you are shopping for electronics the prices are fixed anyway. The only deals you get are when they create bundles or throw in something extra like a gift card with purchase.
----
Real estate taxes are higher in nicer towns too. Usually the schools are better also. I wonder how that happens. ;-)

ever look at amazons - new and used section?

one item retails for $15.

one store shows $2. and $43 shipping
another will show $200 for the same item and still charge shipping.
or the .01 cents with $14.99 shipping.

i try to shop online for everything, its so much easier to just price compare things. if i don't have to eat it, and i'm not going to wear it, i get it online. if the price difference is substantial i'll divide the order, even with shipping it may still be a better deal.


---Mike Savad
http://www.MikeSavad.com

This time of year people go in and buy every single copy of the latest Elmo toy or something else the press is paid to say is popular and sell it on Amazon or Ebay for $200 over retail. And somewhere out there is some rich parent who thinks their kids life will be over if they don't get that toy so they buy it.

MCD does this and advertises it in the ghettos.

Dave

"MCD does this and advertises it in the ghettos."


All ghettos, or just a select few?

only the upper class ghettos


---Mike Savad
http://www.MikeSavad.com

MCD? McDonalds? Or is that some kind of sneaker?

"MCD? McDonalds? Or is that some kind of sneaker?"


Not sure, but I bet there are statistics, graphs, pie charts, and "8x10 color glossies" to support it.

(Thought I'd borrow the "8x10 color glossies" phrase from the Alice's Restaurant lyrics):

"...They took twenty seven eight-by-ten color glossy photographs with circles
And arrows and a paragraph on the back of each one..."

Maybe its street art. Advertised in the ghetto, sold in high end galleries. (I think that's the first time I ever typed the word ghetto).

This is not news. It is true of every national chain retailer, not just Target and it's not just retail.
When I worked for a company that made well known candy, we had pricing that was regional as well as seller specific. So KMart, for example might be charged more than a local business, but we had "regions" mapped out that dictated what our pricing was.

Demographics determine everything. Aldi's, a low priced second tier food market and Trader Joe's, a hipster food market, are owned by the same parent company. Demographics determine which store goes where. You won't see a Trader Joe's in the inner city or even in an average small town, but you will see Aldi's.

Nowadays retailers are smart and often mandate special sizes or bundles for their store so you can't directly price compare. I remember BJs was selling the Canon 6D bundle with two lenses which was only available through them. Or sell a box with some added accessory that others don't have.

Mattress company's have been doing this for years. Every store has the same mattress under a different name.

"The restaurant I believe you refer to is "Soul Kitchen" in Red Bank NJ: http://www.jbjsoulkitchen.org/en. As you can tell from the web site Jon Bon Jovi started it and operates it as a foundation. I know it is still there because I do much of my photography in Red Bank and pass by it frequently."

Ahhhh.... so this more philanthropic kind of thing more than a real business with a profit motive.

Do know if they are still doing the thing where you pay want you want or can afford or has that gone by the wayside?

Retail merchandising is very interesting. I went into a CVS in the financial district of my large city looking for baby food for my cat who was ill. I was told "oh, we don't have a Baby section in this store...we do have a Pet section though". I guess there are more pets than babies in the expensive hi-rise apartment buildings in that area. And space comes at a high premium...well over $100 per sqare foot...so they have to use that space to display stock very judiciously.

And when big retail stores like Macy's advertise sales with big discount (usually for home goods like linens) they bring in lower quality merchandise. What you're getting will not be the same high quality you usually find in that store. And when that sale is over, the leftover merchandise gets shipped out to a Marshall's or some other discount outlet. And all big designers have their budget lines. The label may look a little different. Notice you never see cosmetic lines like Clinique, MAC, Estee Lauder at discount stores? That's because they are "fair traded" merchandise...they can't be discounted. That $16.50 lipstick at Macy's will be $16.50 at Nordstroms. You usually can find your faves on eBay for cheaper though :)

This is SOP for big businesses...Whole Foods is another example. I am not surprised. Even Goodwill does this! My daughter and I thrift and if we go to upscale neighborhood Goodwills the price is a lot higher than others. But there are many things to factor in as others have mentioned....taxes, rent in those higher end locations will be more. Higher overhead = higher prices. But they do scalp what they can off of us!

"And when big retail stores like Macy's advertise sales with big discount (usually for home goods like linens) they bring in lower quality merchandise. What you're getting will not be the same high quality you usually find in that store. And when that sale is over, the leftover merchandise gets shipped out to a Marshall's or some other discount outlet."

Even their own outlet stores sell "second tier" merchandise. You rarely if ever will find the same exact item in the full price stores. The exceptions are off-season goods. If you can hold off buying a coat until March, you will probably find it seriously marked down at their outlets. It is always how I shopped for my kids' clothes-I would go to outlets such as OshKosh, Carters and Children's Place after the next season's merchandise hit the stores and then shop for the next year, buying one size up.

I was returns manager for Jamesway way back when and we always had "specials" that were for limited times, then I had to send it all back after the "sale".

The point is, you have to know how these places work and then take advantage of it. I never shopped at a Macy's, Nordstrom's or Saks outlet because they sold crap. Same with retail all year-don't shop at inner city Walmarts or Targets because they jack up prices. And don't assume because something says "discount" or "clearance" that you'll save.

If you want to see what something sells for-search it on Amazon. They give competitor prices. Many times you can then take a print out and haggle in places that "guarantee" the lowest price.

Old news. And the "journalist" who "broke" this story should be ashamed. Target isn't the only one doing this. And it's not something new. Retailers have been using this tactic since the beginning of retail chains. Back in the '80s I worked in the direct mail industry (read: junk mail). Ads were always aimed at specific demographics with different prices for the same items.

I read several months ago that some online retailers adjust pricing based on one's purchase history. So, if someone spends a lot on high-end products, they are more likely to get charged a higher price from the retailers that participate in this practise. I would guess that people who are bargain hunters would get charged less.

Why are people suprised by this? Unless you have never left some podunk town with just one grocery you should know it by the time you finish high school.

There are lots of issues regarding prices in different areas. Leasing space and taxes etc are much different in Beverly Hills than they are in West Los Angeles. Wages are different too. Saying "Greed" is the main function of the why is too simple.

Still, I stopped shopping Target specifically because they have a policy of non distinguishing between the genders now. No Boys and Girls sections. That is total baloney! They also have been pretty hard on the Salvation Army during the holidays. Another PC move that is bothersome. They are not the only gig in town.

@Floyd: You are right about Soul Kitchen - it is a philanthropic operation. Bon Jovi may even contribute some money at times to keep it going.

I'm not sure they still do it but when it was established you could work off your meal by providing services like cleaning tables or working in the kitchen if you had no money at all to pay.

Walmart does the same. I found an item in the one nearest my house for $10. I live in a very expensive zip code. In another Walmart across town in a lower-income area, the price was $7. Neither item was on sale. Both were regular prices.

"Walmart does the same. I found an item in the one nearest my house for $10. I live in a very expensive zip code. In another Walmart across town in a lower-income area, the price was $7. Neither item was on sale. Both were regular prices. "
That's why I use their "savings catcher" app, or one of the reasons. The Walmart I go to is in a "higher end" town and their Savings Catcher scans sales in a large area. I've gotten some good refunds (It's all put into your account until you generate an ecard) and it saves me the hassle of having to read circulars, including those online, since several stores have chains just a few miles from each other (and in a few cases, less than a mile apart).

" No Boys and Girls sections." at Target.

I didn't know that - did a little checking and apparently it's related to toys and other items.

"The company announced Friday that it is eliminating gender-based signs in some if its departments, including Toys, Home and Entertainment. Right now, our teams are working across the store to identify areas where we can phase out gender-based signage to help strike a better balance.” (from Time.com)

Very cool. I'll have to start shopping at Target. No more building blocks and baseballs for boys and Barbie dolls and easy bake ovens for girls. Just toys for whoever wants them.

cristolin.com

"No Boys and Girls sections at Target...."


It's starting to get rediculous.

If higher prices for upscale markets offends you, consider this:
If a retailer even has a corresponding store in poor neighborhoods (likely not) prices are often higher in the poorer neighborhoods.
Perhaps there's more "shrinkage" (theft).
Perhaps there's more spoilage of goods people can't afford sitting on the shelf until expiration date.
Whatever the reason, it's not discrimination. It's simply free markets at work balancing demand, supply, and expenses.
Stores only get built or started where the investor believes a profit can be made.
Managed economies NEVER do as well at allocating resources as a free market.
So relax the expectation of "fairness", and gain the balanced perspective of economic reality.
If you have a bad credit rating, you pay more for loans too. Being poor stinks.
It's better to get a good education, work persistently and hard, and realize that sometimes, perhaps usually, Horatio Alger had practical ideals in bettering yourself with thrift, hard work, honesty, and other attributes that employers find valuable, and business owners find even more rewarding.

Regarding the boys and girls toy sections: The sections remain the same. The only thing missing is the signage and labeling. All the traditionally boy toys are together. All the traditionally girl toys are together. When you are standing in an aisle there is no doubt which section you are in. It's all semantics.

Greg,

You wanted a chart?

http://stockcharts.com/freecharts/gallery.html?MCD

Get yur burger here.

Dave

Tarjay the haters gona hate.


lol

Dave

BTW I price my art according to demographics as well. I may charge a client $250 for a small portrait, but charge well under that for a person I know who likes my art but has limited means. Ain't no big thing.

Where I am the price of gas is always much higher in the low income area which I find so unfair. I thought maybe it's because they have to pay more for security. I always drive out toward the better neighborhoods to buy my gas.

Donna, where I live demographics seem to have nothing to do with the price of gas. We have 4 Speedway stations within 5 mile of my house, two are about a mile apart. Their prices can vary by a range of 10 cents. It seems to be more driven by what's across the street or up the block.

"Regarding the boys and girls toy sections: The sections remain the same. The only thing missing is the signage and labeling. All the traditionally boy toys are together. All the traditionally girl toys are together...."


That's good then. The closest Target is 45-50 miles from us. Our choices includes Walmart, a few locally-owned shops w/limited selections, whose prices are usually higher (gotta pay the building rent), or, online ordering.


Removing the signage in Target accomplished what or pacified who?

It's the movement to "Gender Neutral". Restrooms are on the way.

I dunno what the big deal is. If little Jimmy wants to play with Barbie a sign isn't gonna change his mind.

When I was little, I REALLY wanted a Hot Wheels racetrack. I also wanted Little Chrissy with her growing hair. Chrissy came to live with me and I have hair to my butt now, but despite never getting my track, I still like fast cars and have a tendency to drive a little fast on the straightaway. When the sucker starts, that is.

"It's the movement to "Gender Neutral". Restrooms are on the way."

They've been doing it in hospitals around here for years. I was surprised they put a woman in my husband's room with three men.

I was surprised they put a woman in my husband's room with three men.

I'm surprised they put more than one person in a room at all. Hospitals here are private room only now. It's their reaction to HIPPA.

Susan, my daughter had cars to play with. She even built a couple of model cars with me. I was hoping she would pick up on my interest in cars and learn how to fix her own stuff. Never happened though...

Im not defending them but the real estate in the areas where the more affluent live is more expensive so stores in those areas pay more for sq foot space than those in less affluent neighborhoods,

When in the USA I only shop Whole Foods. When in Paris I only shop Le Bon Marché. I spend more to stay away from the riff-raff.

Danl,

Looks like Whole Foods is changing their strategy, and the people who could not shop there before might be able to now:

http://dealnews.com/features/Whole-Foods-Changes-Tactics-Starts-Offering-Flash-Sales-and-Discounts/841362.html

Good point, Judy.

I think we artists are just the same way. I'll give away paintings to some people and charge others. Why? Different reasons, but you had best be sure those two different types of people don't know each other.