Retail Strategy Secret #3: Hybrid Pricing

Hybrid Pricing Model

Welcome to the third post in our series of “Retail Strategy Secrets”!  Here you will learn the angles, approaches, and tactics retailers are using every day to try and separate you from your hard-earned cash.  Understanding these unlocks the door to spotting great deals, and you never want to pass up a Dealicacy…

Hybrid Pricing

On a basic level, Hybrid a mix of Hi-Lo and EDLP. Simple, or is it?

You will be able to detect a Hybrid retailer pretty easily.  In fact, it is rare today to find *anyone* that is purely EDLP or Hi-Lo.  It makes it much too simple for deal-seekers and even everyday shoppers to figure out.

Wal-Mart is a Hybrid.  They just “lean” toward EDLP.  Not convinced? … Just sit back and recall the last back-to-school, Super-Bowl and Day-after-Thanksgiving drive times.

Remember any specific items up for grabs for killer prices?  Toshiba laptops, LG TVs, etc. Specific models (not categories) at can’t miss prices. Definitely Hi-Lo… 🙂

On the other hand, remember their prices for potato chips in the week leading up to Memorial Day? Same as ever. And your grocery was selling 2 bags for the same price you usually get one at EDLP…

Did I just see a light bulb turn on?  Most every retailer is some shade of “Hybrid.” And you got it, the name of the game for retailers is confusion. Making it harder to see a clear way to the best deals is an art – and interpreting this art form is one of the reasons why Dealicacy exists.

Remember the post a couple of weeks back about Bed, Bath, and Beyond, and the coupon comparison?  That’s a prime example of the twists and turns that are put into practice by droves of employees and consumer theorists at corporate offices.

There are numerous angles in the Hybrid model, and each seeks to make things difficult for us consumers to see through. Watch the coming articles to get an idea of what else can be sprinkled on top of the basic pricing strategies we have covered thus far.

Coming up next, “PUF”. See you soon!

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