In today’s world, consumers are worried about money and the rising costs of products; however, many people do not realize some of their actions help cause some of the rising costs of businesses and the cut back in jobs. Currently, the U.S. economy is spiraling into another recession. The unemployment rate is at 9 percent, and all businesses are cutting back on employees while slashing current employee’s pay, benefits, and hours. As consumers, people could be more conscious of the true costs that they cost retailers.
– When a customer decides to swipe a debit card as credit to earn those extra bonus points a bank gives to the consumer, the customer is actually losing the company overall money on the products they are buying. This allows the credit card company to charge the business between 8% and 15% on the total price of the purchase. It might be more credit conscious if consumer would actually use the debit card as a debit card or pay in cash, as it costs the business less money in the long run.
– Many consumers are ready to complain about pricing of a product if they feel it is too high; however, they do not realize that a lot of these “high” price items actually lose the store money. In reality, the Apple iPad or iPod, the computer, and the camera are priced so low above manufacture’s costs that the company does not make hardly anything on the product or they lose money selling the product. The movie ticket that is bought is almost profitless at the box office, as the movie company might make a few cents off of every one. Most of the profit goes the manufactures.
– One of the worst things a consumer can do is come in a store the last five minutes they are open and stay for thirty minutes without spending hardly any money or spending no money at all. They take advantage of the fact that most places can’t close until the last customer has left the store regardless of if they’ve actually purchased anything or not, which can be especially inconsiderate and rude. These extra minutes of perusal eats at the company’s labor budget and running costs and causes another spiraling loss in profit.
– In many occasions, a customer will come into a store and abuse the return and exchange policy. Due to dissatisfaction in a product or the product breaking down within the return policy, the store should be held liable to uphold the return and exchange policy; however, returning a product to the store weeks and even months out of return policy really hurts the company when the customer tries to maneuver into getting return. Indeed, opening products on the sales floor even causes a loss in profit as the product could even lose ten to fifteen percent of its market value.
– Many companies measure their employee budget and profitability by their UPT (units per transaction). One thing consumers could stop doing is trying to separate many products into two or three separate transactions unless otherwise needed to separate business and home costs. It is just as easy for the cashier to take and split up a cash, credit card, or check.
As consumers, it would help the businesses they shop at if they were more consciousness of their choices. It could help a troubled economy and help some employees keep their benefits, pay, and hours. When the company has more money to spend, they can hire more people.