In the home furnishings industry, the term "reserve price" is becoming increasingly common in marketing campaigns. Many consumers are now skeptical about these claims, wondering if they're genuine or just a clever sales tactic. Industry analysts suggest that frequent "lowest price" promotions are part of a broader trend in marketing strategies, where retailers use such tactics to stand out in a competitive market.
A few days ago, a customer shared his experience of purchasing a water heater from Dazhong Electrical Appliances for 4,500 yuan. Later, he found the same model being sold at another store for 3,500 yuan. He was told by Dazhong's staff that their price was the "lowest of the year," and if a lower price was found elsewhere, the difference would be compensated. This left him confused: was 3,500 yuan really the lowest price?
In the marketing efforts of home furnishing stores, renovation companies, and furniture brands, terms like “best deal,†“juhui†(a Chinese term for special offer), and “lowest in the city†are frequently used. Promotions highlighting “factory price†and “reserve price†have also become popular. In some home furnishing groups, the phrases “sale price†and “lowest price†are commonly seen. However, many consumers remain unsure whether these so-called reserve prices are truly the lowest available.
When it comes to which brands can be trusted, investigations show that during events like the “Golden September Silver October†promotion, “reserve price†advertisements are more prevalent. For example, the upcoming “Top Alliance†event in China’s home furnishings sector features posters stating, “Factory direct pricing, cheaper than National Day, once-in-a-lifetime deal.â€
Even in regular retail stores, products labeled as “special offers†or “on sale†are everywhere. At Luxin Homeland Building Materials Supermarket in Beijing’s West Fourth Ring Road, a Moen representative said, “The store’s ‘lowest price’ claim isn’t always reliable. We source directly from manufacturers, and with low rent, our prices are naturally lower.â€
An anonymous industry insider noted that since household goods aren’t fast-moving consumer items, most consumers don’t know the actual price unless they have a specific need. After purchasing, they often don’t pay much attention to future price changes. He added, “Many brands promote a few products at discounted prices during festivals. The real reserve price items are usually outdated models, making it hard for consumers to find identical products elsewhere.â€
Liu Chen, Secretary-General of the Beijing Furniture Industry Association, stated, “Maintaining consistent pricing across regions is a rule for well-known brands. Retailers won’t arbitrarily lower prices during promotions, as this could disrupt the regional pricing system. Big brands rarely make such mistakes, while smaller ones are even less trustworthy.â€
Guo Wanlong, General Manager of Beijing Yulong Yinuo Economic and Trade Co., Ltd., said, “Terms like base price and factory price are just marketing language. Even sellers sometimes struggle to determine if the product is worth its price. But during promotional periods, when consumer interest is low, merchants resort to various persuasive tactics. Whether the real reserve price is credible depends on the consumer.â€
Compared to the confusing “reserve price†promises in the market, industry insiders suggest that large, well-known brands tend to maintain consistent pricing. As a result, their “reserve price†promotions may be more trustworthy. (Editor: Peter)
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