Are Missouri consumers getting hustled by companies lowering prices?

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(Missourinet) – Several national companies are dropping their prices on some items during this time of higher inflation. Aldi, McDonald’s, Target, and Walmart are just a few of the companies making the move. Missouri State University Finance Professor Jeffrey Jones says these are marketing tactics that companies can use to help combat inflationary pressures for consumers.

 

 

“But at the end of the day, what they’re really trying to, I think, accomplish, is get people to do business with them with the hope that even though they may be losing money on some of these lower priced promotions, consumers come in and actually then purchase things that have higher margins. And so, it’s profitable for the business,” says Jones.

Jones says when input prices are rising, businesses still pass those increased prices onto consumers in some way. He says consumers should be informed about whether items are actually a good value.


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