By Jake Kanter
Many of you will have seen one pound shops garishly poking out of your nearest retail haven. Well in the US they have something similar, but for the first time in its history the 99 Cents Only Stores has raised its prices.
All the firm’s goods will now retail at 99.99 cents, in an effort to pass on high fuel and commodity prices to customers. The retailer will also narrowly avoid a rebranding exercise, refusing to concede that its products will be closer to the $1 mark.
Eric Schiffer, chief executive, said: “Just as Motel 6 was eventually forced to raise its price above $6, after 26 years we are forced to raise our price by just about one cent.”
What change a customer will get out of a dollar bill remains to be seen.
Would your organisation consider passing on high prices to customers? How do you think consumers react to these kind of cost hikes?