In a conference call with analysts this week, the CEO of the California-based “99 Cents Only” store chain was asked whether they’d consider breaking their 99-cent barrier to improve their dismal numbers. He responded:
[It is] definitely on the table. That is something we’re looking at . . . in the future for us. We’re looking at doing some experiments. Obviously one way [is that] you can start selling things for $1.05, $1.09, $1.15 and other ways. You could have more of a break between your 99 cents price point and the next price point.”
Of course, breaking their 99-cent promise—the core of their branding—would be risky, not to mention expensive (think of all the signage they’d have to change). But the economy still sucks, the company has been in the red for two quarters, and shareholders are getting restless. You’d better buy all of your off-brand toothpaste now while it’s still cheap(er).
“‘Mostly 99 Cents Only’? Chain rethinks its pricing scheme” [LA Times] (Thanks to Anthony)