In previous years, we have succumbed to the pressure of offering sales in Revolana shop. This year, after reviewing all of our regular prices down, we no longer offer sales. We think it is better to offer a fair price all year long than an overvalued price that is significantly reduced during sales.
Loss of meaning
While we understand that sales make sense in some cases, such as closing out remaining items before a new collection, they have become a delusional tool for bidding up in today’s business. Between private sales, promotions and periodic sales, the price displayed without reduction loses more and more meaning.
A price is normally made from a cost price calculation on which a margin, which allows the company to develop, is applied. This gives a fair price on which it is difficult to apply discounts. There is always a possibility to discount stopped products or end of the collection inventories, which allows the company to regain liquidity at the expense of its margin. However, this should not be a strategy for selling.
Nowdays many companies no longer practice this type of calculation. The price is fixed independently of the cost of the product and is based on the price that the market can absorb. For example, a 100% polyester dress, made in Bangladesh that costs 4 euros to produce can be sold 50 euros in store. During sales, they will be sold 20 euros with 60% discount. This is probably the price it should be sold if a fair price was applied. The price before sales no longer makes sense.
Respect for our customers
Selling a product with a discount greater than 50% should not logically be possible outside of very special cases. A customer who would have bought a product before the sales, and who would see the same product sold for less than half price, would have the right impression of being fooled. This may explain why traders find themselves in a spiral of permanent promotions to keep selling.
Our pricing policy
So we decided to offer a fair price all year round without making any sales. We will continue to make occasional promotions on certain products in the event of overstocking or end of series. We believe that this strategy is the best way to respect our customers and offer the most attractive prices.