If a store offers discounts, the store must also provide the reference price, which is the lowest price in the last thirty days. Many stores therefore do not give discounts, but simply a new price, a Black Friday price. Then there is no discount and they do not have to provide that reference price. The recommended retail price is still given, which is the price that the manufacturer suggests to the store.
“They make you believe that you will save more than you actually save. For us, this goes a bit against what the legislation actually meant. And that is to inform the consumer correctly. We think this is a way to circumvent the law,” says Laura Clays in ‘The Hour of Truth’.
Relatively new legislation
This is partly because the legislation surrounding that reference price has only been in existence for a year. “Shops still have to figure out what they are still allowed to do within the limits of the law. And we see that they are trying out some things,” said Clays.
Testaankoop does plan to submit this practice to the Economic Inspectorate. They can then assess whether this falls within the reference price legislation.
Don’t be guided by the sales period
Also, you shouldn’t always wait for Black Friday for lower prices. Research by Test Aankoop shows that early October is also interesting to buy electronics, for example. “That is a strange period, because then there are no sales anywhere. But that’s exactly why. People are between two periods and don’t know whether they are going to wait until Black Friday. Demand is somewhat lower, which means prices are also quite low.”
As a consumer, it is not always easy to keep an eye on all these prices, says Els Breugelmans, retail expert professor at KU Leuven, in ‘The Hour of Truth’. If you follow the price carefully and inform yourself, you can pay off. But we are all busy and not always busy with all those purchases. It does require an effort and people who cannot afford this are sometimes the victims of the higher prices.”
What if there were no more discounts?
These discounts are not always a good thing for companies either. “Promotions are interesting in the short term, but there are also some disadvantages in the long term. People are going to wait, so there is a dip in promotion. And also a dip after the promotion, because they start buying more quickly. Is that promotion still profitable? The reference price will also decrease, because there can always be a discount. So why should we still buy in that higher price period?”
According to Breugelmans, it is an interesting thought to think of a world without promotions, but in practice it is not so simple. “If you have such a world and the first person who thinks, I will do a promotion or a campaign, will win over that customer again, so that is a difficult thinking exercise.”
In addition, Breugelmans says that smaller stores forego the discounts that large companies give. “Retailers look at large chains that give big discounts. And they have to ask themselves whether they will go that route because it cuts into their margins.”
Consumers also find sustainability and ethical consumption increasingly important. “Not all companies are going along with this yet because they are still in the competition for the lowest prices. But I think that in the coming years we will move towards a kind of consumption pattern in which sustainable consumption will become increasingly important and that we will pay a price for it. .”
2023-11-25 09:51:30
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