Baťa prices and problems they cause
They are inconvenient for retailers and buyers too
March 6, 2015, | Baťa prices end with digit 9. In the old days, when prices normally ended by digit 0 were Baťa prices in place, Bata shoes were cheaper. Nowadays many prices end with digits 90 or 99. Today's Baťa prices are disadvantageous for vendors and buyers too, and yet they are widely used. What are the disadvantages?
1. Retailers will earn less
It has been proven for a long time that round prices ending with digit 0 and Baťa prices ending with digit 9 distrust buyers. Customers will rather buy a product for a higher price than buying for Baťa price. Today's pricing is done by a computer program and such calculated prices have a positive effect on buyers.
2. Retailers can be short of small change in a cash register
When I worked as a manager at a retailer I had come across Baťa prices. While selling for Baťa prices, we were continuously short of small change at the cash register. When I corrected prices not to end with digit 9, problems with a shortage of small change disappeared. We had an exact amount of change we needed at the cash register.
3. Customers have problems with claims
Handling complaints of products bought for Baťa price can become a nightmare. Few times I had been refunded Baťa price. I claimed product for 9,99 € and I did not have 1 cent on me. The sales assistant had to give me back the whole price in change. Surely it would not please anyone and remembering to have 1 cent for every complaint is just not possible.
4. A competitive environment is being deformed
Real prices are deformed into Baťa prices and by doing so competition is reduced. Baťa prices increase the likelihood of an equal price for the same product at different retailers. In the end, the customer is the one who is paying the most.
What does the product price depend on?
It can be company pricing politics.
It can be insufficient information on Baťa prices.
It can be lack of time or just simplifying the pricing work.