J.C. Penney is not too happy with one of their employees who went on television to reveal how the department store has been ripping off customers. In the magic of retail \u201csmoke and mirrors,\u201d you aren\u2019t supposed to say how the magician does the trick.<\/p>\n
According to (now \u201cformer\u201d) employee Bob Blatchford, J.C. Penney has been hiking up prices on items, then \u201cslashing\u201d them with sales that makes it appear like customers are getting huge discounts. In reality, a customer is more likely to be spending\u00a0more<\/em>\u00a0money than less.<\/p>\n \u201cI saw a lot of pricing teams going through the store, raising the prices, mostly doubling \u2013 towels and clothing,\u201d Blatchford\u00a0told NBC\u2019s Jeff Rossen<\/a>. \u201cThen they would go on sale, and they wouldn\u2019t always go on sale for 50 percent off. Not only was it a fake sale, but they were actually paying more than they would have been previously.\u201d<\/p><\/blockquote>\n It\u2019s a neat trick (if ripping off loyal customers if your \u201cthing\u201d) because people have a psychological tendency to spend more when they think they are saving money. If you\u2019ve ever found yourself an owner of something you didn\u2019t want just because you couldn\u2019t pass up a good deal, you know the feeling. J.C. Penney turned that psychology into a business model. But Blatchford exposed it and the illusion was shattered. Suddenly it didn\u2019t feel good spending $8 for a pair of shorts that used to cost $7 just because a sticker said \u201c50 percent off.\u201d<\/p>\n