Target increases price-point in the $1 aisle

April 14, 2007

The familiar Target Aisles in the front that carried $1 goods is an excellent hook for users. And a great way to dispose unsold inventory. However, Target has quietly introduced products that are at the $2.50 price point in the same aisles. The price tag is there, but its unlikely customers are noticing it. Many customers must be assuming that all products are at $1. A classic habitual response.
At least this is what happened to me and another shopper. A Hawaiian style straw hat looked like a very good buy at $1, only to realize later that it was priced at $2.50. Increasing the price point makes financial sense, but I wonder if customers will feel cheated if and when they find out that their purchase was not such a good bargain after all. There has to be some sort of visible delineation/marker between these products. At best, these aisles will lose their effectiveness as a purchase hook. At worst, its an easy way to lose customer trust. A bit at a time.


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