7 retail pricing secrets revealed

Retail prices can be confusing. What does "list price" mean if nothing ever actually sells at list? When is a sale a genuine deal? Money Magazine explains why things cost what they do - and how to use that knowledge to get a better deal.

Lesson 3: ... and then they get really cheap
Lesson 3: ... and then they get really cheap
Exploit end-of-life-cycle pricing by shopping for a product when its new version has launched. Today that Razr V3 sells for a mere $50 with a contract since Motorola is pushing its MotoKrzr.

Similarly, the new Mizuno Wave Creation 8 sneaker retails for $130, while the Mizuno Wave Creation 7 (originally $120) can be had for $85. Once the Creation 7s are gone, however, there's no restocking.

Shopping at discount retailers like dollar stores and outlets can also help you capitalize on life-cycle decline. "The shelf life of detergent may be seven years. So Dollar General locates a warehouse of Tide that's five years old," says Underhill. "And they purchase that warehouse at a discount." Since it's not "fresh," they're able to undersell supermarkets. But since it's still usable, there's no real downside.

Lesson 1

Lesson 2

Lesson 3

Lesson 4

Lesson 5

Lesson 6

Lesson 7
Invest to win 2007 Money Magazine's new list of best mutual funds. Plus: 5 perfect money makeovers. (more)
Best Jobs in America Get compensation stats and demand forecasts. Research by Money Magazine and Salary.com. (more)
Top 10: Fastest-growing counties Maricopa County, Arizona added the most residents in the U.S. Census Bureau's latest ranking. (more)
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.