by: Richard Dows
Consumerism is the public face of capitalism. Ultimately, everyone is a consumer regardless of the political system in position - even communists had to buy things. But, consumerism has reached giddy heights in the "West", where the culture itself is one of "I want". Perhaps a more recognizable face of this is the "one up on the Jones'" ideology - the Jones' have a new car, then you had better get the next model.
Retailers have the bottom line in mind of course, their goal is to make as much profits as possible while attracting as many consumers as possible. Traditionally this is a razor's edge - if they charge too much for an item there will be other retailers who offer it at a reduced price, thus their profits dip. If they charge too little they will be swamped with consumers and sell out of their stock. They have to find that point where they can just sell out of stock and charge just enough to attract hoardes of hungry consumers.
So how do they make lots of cash and still beat their competitors? One way is to offer coupons. Give 5% off and they'll start to attract a whole lot of consumers eager to take advantage of them (the real question is, who is being taken advantage of?). Another method is the rebate, which it should be said, not everyone fills out and sends back in. They make a lot of money on attracting people via rebates but who don't actually send them in.
Enter the Internet. Now, retailers see a way to make even more money, and to cut out the middle men. By placing all their stock on websites, and offering coupons to fill in at order time, they don't have to operate stores, pay salespeople and staff, pay electricity bills, rent etc., The order gets filled in online, and shipped directly from warehouses, what a money saver! Take a look at sites like www.streamsofgold.com and www.oceansofgold.com and you'll see what I mean - some retailers have astonishing offers, up to 70% off items ordered online, $200 off $2000 purchases. It makes consumers think they are making a killing, but in reality the retailers is laughing all the way to the bank.
Is it the birth of something new? Or rather, are consumers becoming more receptive and savvier than before? Rather than having to fill a form out, send it in, wait for the check in the mail, it is far simpler now. Go to the website, order, fill in the coupon code, instant savings! No, it is not new, it is young sales executives who were weened on the early Internet realizing its true potential, as a mass marketing medium for consumerism.