Connected to my residential hall, there is a deli. There are two entrances to the deli, one connected to the residence hall, and one outside. This choice was made for the convenience of students living in the dorms, while also saying that this place is not solely for them, but anyone in the area. When going to checkout, students are given a 10% discount on whatever they purchased in the store. Why was this made? It’s a great marketing tactic, drawing broke college kids in with much needed discounts. However, it’s also a financial decision because there is one thing you notice that you may not at first. Down the block we have a grocery store, and the majority of items that are in the deli, you can find there cheaper.
The Deli’s prices are highly inflated, there you can get $6 lemonade, when you can get the same one 2 for $5 at the grocery store. Yet, most students will still get the one from the deli because it’s convenient, and hearing that there is also a discount makes you feel like it is the smarter choice. That was a strategic financial decision made by the owners, they were able to market their business in a way that sort of made us ignore the irrational prices they actually hold. One thing to also notice is that there are no price labels on most of the products in there, actually the majority have none. Most of the time, you only find out the price once you’re actually up there paying for it, which at that point, for most people, many will pay for it regardless. The lack of visual representation of their prices benefits them in that way. In most delis and grocery stores this is not the case, so why is it here? Because this deli’s main consumers are college students living in not so cheap dorms, that will take convenience over almost anything when it comes to quick things like snacks and drinks, like me.