Are We At The Tipping Point For Retail?

It’s been nearly two years since Wendy’s matched McDonald’s $1 double cheeseburger.

Like the supermarket sale on bananas I thought this was a good way to gain the extra profit on other items like soft drinks and french fries.  (I am not considering health concerns in this post.)

What I didn’t expect was how much this would spread.  Not to other fast food places.  I knew that would happen.  What shocked me was how many menu items got included.  The intro to this video shows all the food that $1 can buy at Wendy’s today.

I learned a long time ago that discounted prices become the ceiling instead of the floor. Trying to increase prices after dropping them is virtually impossible.

Americans do not expect to pay full retail for anything: Food, clothes, cars, computers, you name it.  And online deals have made it easier than ever.  Want a one day best deal ever? Groupon.  Want to get a 25% discount at The Gap? Check-in with FourSquare. Need a two nights for one at a campground? The been around forever Entertainment Book is online too.

That doesn’t include all the offline discount cards and weekly ads.

Here’s the thing.  We don’t know when we’ve reached the tipping point until it’s way too late.  Are we there with restaurants and retail establishments?


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