Price endings are not random

Do you ever go to stores and wonder how the pricing works? Sometimes I see products in stores that sell for $3.41 or $11.56 and wonder how the manufacturer’s ended up with such seemingly random numbers that are not only hard to remember but also annoying to the few people who still want to pay cash (a handful of pennies anyone?) Sure, sometimes the pricing is designed to come out to an even number, once accounting for tax, but other times, it just seems completely arbitrary.

Not at Costco. There is a reason behind their price endings. In this post, I am going to focus on the “97” ending. Several people have written codes to the Costco pricing system. For example, see http://hubpages.com/money/Secret-Codes-Will-Save-You-Money-At-Costco

Items ending in “97” indicate that the products did not sell and therefore must be sold quickly. They may need to be sold due to upcoming expiration dates, low appeal to consumers, or to make room on shelves for other products. Given that Costco sells far fewer different items than most stores (http://www.cnbc.com/id/47175492), they do not have the space to stock products that are not in high demand.

Before I was a savvy Costco shopper, I used to walk around the store with my mom, who would periodically stop and say, “oh, this is a good deal.” Now, my mom is an excellent bargain finder, but I couldn’t understand how she knew immediately that an item was a special discount. Until…she let me in on the secret about product prices ending in 97. Since then, I have surpassed my parents in the “97 spotting” ability and it is as though I have special radar for the items.

The items may not be huge savings, but again, as I wrote with respect to coupons in my last post (https://cruisingcostco.wordpress.com/2015/12/18/non-costco-coupons/), if I am interested in the items anyway, it is exciting to find them on the special discounted price…although, of course, the discount can be disappointing, as it is often an indication that the product has been discontinued. For example, I was in the Dedham Costco a few times this summer and saw a double pack of zucchini bread. Zucchini bread had been my absolute favorite item in my college dining center (my friends and I would be excited to see it and wrap up extra slices (half a loaf can be considered a slice, right?) to take back for snacks. However, I had a bunch of other bakery products so I decided I would wait until my next visit. Then, on the day I decided I wanted to buy it, I got nervous when I walked through the bakery and did not see the packages. I thought that maybe I had missed my chance. However. I then spotted one double-pack mixed in with another item. As there was no price, I scanned it and saw that it was $3.97. For two large loaves! So I bought it, enjoyed it, and…have not seen it since. Therefore, the savings are good, the implications of the savings are not always good.

The discount is also fun when the item is a product that I would not normally buy but am interested in as a special treat. A few years ago, my parents found cakes by David’s Cookies on a huge (huge!) discount. These cakes were chocolate torte on the bottom and cheesecake on the top, and are literally one of the best things I have ever eaten. I would never spend $45 for a regular-sized cake, but at $5.97 each, it was a great find. https://www.davidscookies.com/product/00231

I will admit that it can be tempting to buy items on the discount, despite not *needing* them (although, let’s be honest here…does anyone actually *need* most of the amounts of products at Costco??) For example, a few weeks ago, I had a 10-pack of those little Friendly’s sundae cups in my cart (40 cents a sundae!) before realizing, “wait, I don’t even really like these!) and putting them back.

My past few trips to Costco have been full of 97 spottings. I saw several seasonal items, such as pumpkin bread mix and gingerbread cookies. I also saw items with an upcoming expiration date, such as salad dressing. And then some items that it appears Costco will not be carrying after they disappear, such as tempura shrimp, ginger dressing, and siracha sauce. In addition, it seemed as though most of the clothing items were discounted…perhaps they are trying to clear out of many winter items.

I trust Costco but I did think to myself…I wonder of Costco ever just smacks a 97 on an item to increase its sales, perhaps hoping people don’t recall the original price and/or notice that it continues to be carried…I know, I think too much 😜

Did you know about the 97s? Do you look for them? Do you ever buy products that you normally would not buy if they are on this discount?