The holiday shopping season is upon us. Colder’s has at least one “new” promotion–or, rather, a new twist on their old trick–called
“Full Back ~PLUS~ $50 for Every $500 You Spend!”
In a nutshell, it’s the same full-back promotion they’ve always had… with some extra sizzle thrown on top, in case the old full-back/half-back parlor tricks just weren’t pulling you in.
Don’t fall for it.
“Sparky” left a great comment on another Colder’s post we thought we would share with you, if you’re still confused or otherwise considering shopping at Colder’s:
I question previous individuals stating that Colder’s is lowering their margins in a time of need or that this is the ultimate good deal. I will admit that at the end of the day this is a ‘good deal’ but only if you enjoy giving Colder’s increased profit margins way above what they should be receiving.
Our story is that we say a dining room set we loved at $1,200. That qualified us for the “full back” promotion and we would get an additional $1,200 as a store credit. They are also currently having an additional 5% bonus so my credit was $1,300. We wanted to buy a dishwasher with the credit and found a nice Professional Frigidaire we liked that also had great reviews.
So, the normal price on the Frigidaire was $750 but the “full back credit” price was $1,060 so basically I was giving Colder’s $360 of my credit back as pure profit to them and nothing to show for it. This is in addition to paying a $400 premium price for the dining room set above their normal price.
Bottom line is that to get my dining room set and a dishwasher, I would be giving Colder’s $710 of my $1,300 credit as pure profit to line their pockets. This is above and beyond the normal profit they receive on the items at the regular prices.
What’s even better is that Best Buy had the exact same dishwasher on sale for $595 with an instant $20 coupon and they also told me about $100 in rebates Frigidaire was offering so I got the dishwasher for $475. Something our salesman at Colder’s neglected to tell us about…..
It was smoke and mirrors from the moment we walked in the door. I spent 20 minutes with him on Saturday and another 30 minutes with him on Sunday. I have his scribble card right here in front of me and none of it makes sense. Voodoo Economics. For the record I have an undergraduate degree in Economics and a Masters in Finance and I’ve worked in the Financial Services industry for 20 years. If I can’t make heads or tails out of this, I’m sure non-numbers people would be baffled by it (or just overwhelmed by the slick sales pitch and just buy everything out of blind faith that they are getting a good deal).
Could I have bought the table at the normal price and bypassed the “full back” promotion? Yes, and the price was $870. However, that was still a normal everyday price with no discounts for the holiday or any sales pricing. Based on my experience this weekend and the smoke and mirrors games, I refuse to give them anything going forward (and I’ve spent probably $5,000 over the years at Colder’s before these types of sales evolved – they used to be a great place to shop).
All they are doing is marking everything up 25 to 30% above the “normal” prices to create the cushion for the “full or half back” promotions. What they fail to tell you is that you are giving them back the 25 to 30% of your rebate in addition to the profit margins they already have built into the normal pricing. [emphasis is ours –alexfalkenberg.com] Nothing illegal about it and if they get people to buy from them, good for them – it’s a free market society. However, it won’t be from me anymore. There are way too many other options out there from stores that don’t play games.
Read it. Twice. Then read it again. You’ll hopefully now find yourself considering and favoring furniture and appliance destinations that are not Colder’s.
Be safe and smart this holiday season, folks. Thanks again to “Sparky” for sharing his experience with all of us.