Have companies become too efficient? (In terms of deals)
I was thinking about all those threads that complained about the lack of Boxing Day Sales - or even the lack of fantastic deals now - and how many users here said deals are not as good as years past or that you could find better price at a different point in the year.
I wonder if part of the issue is that retailers/distributors/manufacturers are smarter with their inventory.
We all know that companies are interlinked via the internet, and in some cases (say, Wal-Mart) the manufacturer knows how much quantity of their product is on the shelf at a particular store waiting to be sold. In addition, manufacturers themselves utilize Just-in-Time (JIT) Systems, this means that they have the ability to reduce inventory levels themselves and order just enough to fulfill an order.
So, how does that effect deals?
I believe that most deals are intended for 2 purposes:
1. Clear out old stock
2. Get the product into the hands of those who may otherwise not buy (ie. someone may not pay $400 for something, but at $150 .... they are more likely to consider it)
If all members in the distribution network (manufactures/distributors/retailers) have significant information when it comes to inventory levels across stores (or the network itself) then the possibility of being overstocked is reduced greatly.
And if stores do not have a massive surplus of inventory, they don't need to have a fantastic deal to move old stock, mainly because they didn't order too much to begin with.
So, in 2013, are deals not as great as they once were because the distribution network is too efficient?
I wonder if part of the issue is that retailers/distributors/manufacturers are smarter with their inventory.
We all know that companies are interlinked via the internet, and in some cases (say, Wal-Mart) the manufacturer knows how much quantity of their product is on the shelf at a particular store waiting to be sold. In addition, manufacturers themselves utilize Just-in-Time (JIT) Systems, this means that they have the ability to reduce inventory levels themselves and order just enough to fulfill an order.
So, how does that effect deals?
I believe that most deals are intended for 2 purposes:
1. Clear out old stock
2. Get the product into the hands of those who may otherwise not buy (ie. someone may not pay $400 for something, but at $150 .... they are more likely to consider it)
If all members in the distribution network (manufactures/distributors/retailers) have significant information when it comes to inventory levels across stores (or the network itself) then the possibility of being overstocked is reduced greatly.
And if stores do not have a massive surplus of inventory, they don't need to have a fantastic deal to move old stock, mainly because they didn't order too much to begin with.
So, in 2013, are deals not as great as they once were because the distribution network is too efficient?