How the hell do they stay in business?

[K Frame]

Kohls.

I just ordered polo shirts from Kohls, their Croft and Barrow brand. I love them.

Their polos are regularly $25 per.

Right now they're on sale for $14.99, so that's an immediate savings.

Add on a Kohl's 30% off promo code.

Add another code for free shipping.

Add yet another code for $10 off orders over $50 in men's big & tall.

Final tally, $59.30.

Total savings on the order? $103.

[cordex]

Because markup on clothing is extreme.

[dogmush]

Total cost to manufacture and import each shirt:  $0.93

[K Frame]

Yeah, but it's not just clothing.

You can do the exact same thing with appliances, home furnishings, etc.

Years ago I bought a decent watch from Kohl's. About $200 list.

By the time I stopped stacking coupons and promos onto it, I think it cost me right around $60.

Kohl's prices generally aren't that good... until you start in the sales and promos.


"Total cost to manufacture and import each shirt:  $0.93"

The unit item cost is but a single element of its total cost.

You also have to figure in salaries, real estate, utilities, transportation, etc., costs amortized across all inventory.

Obviously they're still making a profit, otherwise they'd be in receivership, but still.

[MechAg94]

'Cuz most people don't know about or use the discounts?

[cordex]

Kohl's prices generally aren't that good... until you start in the sales and promos.

Right, which is kind of the point.  They price it high to start off with (and some people will pay that high price) then offer sales and coupons to bring it down to the level that will bring in enough other buyers to keep transactions high.  The sales make you feel like you got a screaming deal and they're making a tidy profit so everyone leaves happy.

JCPenny went through a period where they essentially admitted "hey, those 'sales' on all the items that is always going on - yeah, that's just marketing wank - let's just be honest about the prices and then when we have a sale it'll mean something."  Enough customers hated it as they no longer felt they were getting "deals" and "savings" (even if the price would have been the same with or without the "40% OFF!!!!" signs) so they went back to their old way of doing it.

[K Frame]

OK, good points.

Still love their polos, though. :)

[HeroHog]

Made our first Duluth order. Got 20% off and that was helpful! Can't wait to see how the items fit, feel, and wear.

[KD5NRH]

'Cuz most people don't know about or use the discounts?

This.  The restaurant next door to the shop has a reward program where you get one point for every dollar spent, and at 100 points, you get a $10 credit.  Scan the barcode on the receipt to collect the points, and when you have a reward due, you get a code.  Takes about 15 seconds to scan it, so there's plenty of time while waiting for the food to be ready.  A big beef, chicken or pork burrito (enough for me to put off dinner until after 8 when I eat lunch there) and a drink is just under $11, so ten of those and you get the 11th for ~$0.90, or catch them on a free soda with meal day, and you end up saving enough to cover the difference at the next cash-in.  They have a lot of regulars who toss their receipts immediately, and according to one of the managers, even among the people who do scan them in, there's tens of thousands in unused rewards over 30 days old floating around at any given time.  (That's for 168 locations, but still, a lot of people aren't taking advantage of the opportunity, especially considering the number of large groups I see over there where somebody's clearly spending $100+ in one shot.)

[K Frame]

Pretty much my go-to jacket is my Duluth Trading shirtjack. Christmas gift from friends a few years ago. I absolutely LOVE it. I wear it as a 3-season coat (except in the worst winter weather), I wear it around the house, you name it. Warm and very comfortable.

[grampster]

I had a friend in the shoe business.   You want to talk about markup?  He told me the name brand shoes you buy for $150.00 were delivered to the merchandiser who sold you those shoes at a cost to them of around $15.00.

[robear]

What a timely post.  You just definitely made a sale for them.   I have been trying to find some new, quality polos since llbean dropped their 3xl-tall size.    I bought some from amazon, but the fit is a bit snug and the material is quite thin.    I didn't get quite the savings you mention, but full cost, including shipping and tax ended up at about $15.94 per shirt.

Many thanks Mike!

[lupinus]

Same way places like men's Warehouse make money when they're seemingly giving stuff away compared to the list price. The sale price is the real price, someone who actually buys it at full price is just gravy.

Sent from my Pixel XL using Tapatalk

[KD5NRH]

I had a friend in the shoe business.   You want to talk about markup?  He told me the name brand shoes you buy for $150.00 were delivered to the merchandiser who sold you those shoes at a cost to them of around $15.00.

This is why I buy dress shoes from Goodwill for $6.  Half the time, they were only worn for a funeral anyway, and I'm pretty sure embalming kills athlete's foot.

[T.O.M.]

Last fall, we were suit shopping for my oldest.  Kohls had a sale.  We found suits on the clearance rack in his size.  By the time we used the coupons and all, we bought him two suits for $60.  Dress shirts and ties cost more than the suits.  For around $150, he walked out with two suits, three dress shirts, and four ties. I buy most of my work clothes at Kohls, and only when I have coupons/Kohls cash.

[HankB]

Several years ago I needed a new coffee maker - looked at Keurig.

Kohls had one that listed for $180 - an artificially high MSRP designed specifically to make people think they're getting a bargain when it goes on sale.

Well, between discounts, coupons, rebates, etc., I got it for a little over $40. Four years later - it still works fine.