Let's clarify. Not cheap as in the quality of the product but cheap as the cost of the desired item. In today's world, many people want to get the most out of their cash and it is by the actions people take, this theory is proven time and time again. Call it whatever you want; sales, rebates, coupons, discounts. They are all designed for the customer to save money because businesses know that people want a great deal when it comes to something that is directly related to a person's standard of living.
The proof for this is when a big anticipated sale occurs such as the Boxing Day sales. People will go to drastic measures to get the best deal for their money. They will wait in for hours and even go as far as to having their holiday meal while waiting in line of the larger more popular retail stores. Another proof for this is the coupons that come with your mail. Thousands of kilos of paper are used daily to print coupons and list sales of items from various businesses.
Sales are marketing gimmicks for companies to have a consumer believe contradicting statements such as the "Buy more, spend less" slogan. This is designed to have a consumer buy more of their products. But how this really works is that when you buy one item every consecutive item is cheaper than the previous purchase. However if you think about this logically the customer is actually spending a lot more money than they may have originally have spent if there was no sale.
Another marketing gimmick for companies for consumers to buy their products is through coupons. Be it the ones you get in your mail or from the ones form the internet, they both give you a discount or some kind of service as long as you meet the conditions of what is required for you to receive the discount. How this is still profitable for businesses? The company may give a discount but going to that store to just buy that item is usually unlikely so the consumer may buy other products as well. For items that are expensive, cutting the price by one hundred to even one thousand dollars can still mean a profit for the business. Many businesses get a small profit from a large item, but receive volume discounts from the supplier which tends to be lucrative.
A third marketing gimmick that businesses use are rebates. Two of the most common types of rebates are the in-store rebate and the mail-in rebate. The customer received an in-store rebate in advance for a certain amount of store credit. The customer then purchases the item at a reduced price. How a mail-in rebate works is, the consumer buys the item at full price but mails a copy of the receipt, a copy of the UPC barcode, and a filled rebate form to the specified location provided by the store. They will receive a rebate cheque.
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