Friday, March 02, 2007

The Concept of the Cover Charge

I have a friend at work that introduced me to the following topic and feel the need to share it here. It's the concept of the cover charge, similar to getting into a club, but it's applied to stores like Target or the Home Depot.

Take Target as an example, when is the last time you left there spending less than $50? Exactly. And there's the entire concept, there's a minimum amount you will spend at most of the stores you frequent. The Home Depot's cover charge is a little steeper at $100, particularly because of the more expensive merchandise like ceiling fans, electric fireplaces, lawnmowers, and other similar items. And, home improvement stores only work in increments of $100...once you break that first hundie, two hundie is only a blink of the eye away.

The reason I bring this up is two fold:
1. You must be aware of this phenomenon. You may think you are going to Target for "a couple of items" that will only run you $10, when in reality you should know better.
2. You've got to use coupons when possible (you can find some good Target coupons and Home Depot coupons online).

Take note of this concept, for you will begin to notice your own "cover charge" stores, where it's guaranteed you will spend a minimum amount. It might only be $20, it might be $100...no matter the amount, it's important to be aware.

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