J
jimbo
Guest
re: discount codes.
I find nothing unethical about using any discount possibly available. This is basic "Retail 101". Companies use discount promotions because the MAIN goal of all retail operations is current SALES VOLUME. Lowering prices via discounts usually results in greater total dollar sales numbers. Of course net profit is slightly lower, and an operation must ultimately make enough profit to sustain itself. This is a totally different discussion.
At the risk of boring everyone, let me use an example. I happen to work for Home Depot. Twice a year, we have what is called a "Friends and Family " event. Each employee is given 10 cuopons good for 10% off any purchase (no dollar limit). Actually, any number of coupons are available if you have a lot of friends!.. This sale is not advertised in the papers, but word gets around. HD does not care who or how many people have coupons. The more the merrier! Someone who is thinking of buying 2 to 3 thousand dollars of remodel supplies decides the 10% makes the time right.
In my store,where we do an average of $1.3 million per week, this sale week we do $1.8 million. Multiply that extra 1/2 million by 1800 stores, this is serious money. SO the fact that 10% gross profit is given up is totally overshadowed by that very important gross SALES VOLUME.
This is how retail works. You might say comparing Amtrak to Home Depot is apples to oranges, but I do feel Amtrak doesn't care who uses a discount code, only that someone who might otherwise not have travelled at all decides to take advantage of a coupon an take the trip.
I find nothing unethical about using any discount possibly available. This is basic "Retail 101". Companies use discount promotions because the MAIN goal of all retail operations is current SALES VOLUME. Lowering prices via discounts usually results in greater total dollar sales numbers. Of course net profit is slightly lower, and an operation must ultimately make enough profit to sustain itself. This is a totally different discussion.
At the risk of boring everyone, let me use an example. I happen to work for Home Depot. Twice a year, we have what is called a "Friends and Family " event. Each employee is given 10 cuopons good for 10% off any purchase (no dollar limit). Actually, any number of coupons are available if you have a lot of friends!.. This sale is not advertised in the papers, but word gets around. HD does not care who or how many people have coupons. The more the merrier! Someone who is thinking of buying 2 to 3 thousand dollars of remodel supplies decides the 10% makes the time right.
In my store,where we do an average of $1.3 million per week, this sale week we do $1.8 million. Multiply that extra 1/2 million by 1800 stores, this is serious money. SO the fact that 10% gross profit is given up is totally overshadowed by that very important gross SALES VOLUME.
This is how retail works. You might say comparing Amtrak to Home Depot is apples to oranges, but I do feel Amtrak doesn't care who uses a discount code, only that someone who might otherwise not have travelled at all decides to take advantage of a coupon an take the trip.