Is Crazy Cazboy’s pricing too crazy or just crazy enough?
Retail has its established pricing structures — high-low, EDLP, etc. — as well as new data-driven experimental pricing structures such as dynamic pricing and personalized pricing. Then there’s the new discounter, Crazy Cazboy’s, that has a pricing structure all its own.
The brainchild of Birmingham, AL startup maven John Cassimus, Crazy Cazboy’s is a store where prices decrease steadily throughout the week, according to the Over The Mountain Journal. On Friday, the discounter brings out new merchandise all priced at $6. On Saturday, prices drop to $5. Continuing the day-to-day decline, on Wednesday the price on all products reaches a low of 25 cents.
The chain opened its first store earlier in May. Mr. Cassimus intends to open five to seven more store locations in Alabama and nearby states by the end of the year.
A video on the Crazy Cazboy’s Facebook page showed an appreciable amount of foot traffic on the store’s first 25 Cent Wednesday, with customers digging through large bins of product.
Crazy Cazboy’s is Mr. Cassimus’s third liquidation discounter business venture, according to the blog BhamNow. The store is sourcing liquidated product from Amazon.com, Best Buy, Home Depot and other big box retailers. A significant amount of product comes from Target. Products on hand range from refurbished iPads to brand-name baby wipes and greeting cards. Ninety percent of the product is in new condition, according to Mr. Cassimus.
While Crazy Cazboy’s experiment seems like a radical one and perhaps difficult to sustain, larger chains have experimented with scheduling discounts on specific days.
Beginning during the 2017 holiday season, for instance, Target began offering deals on particular items only on weekends — a time when twice as many customers visit its stores. The chain was so successful with the experiment that it brought back the deal structure for the 2018 holidays. During this period, the chain also ran single-day flash deal discounts.
In terms of the “treasure hunt” appeal of Crazy Cazboy’s less structured, bin-based layout, retailers including T.J.Maxx, Dollar General and Ross Dress For Less have demonstrated significant success with similar models.
- Call Me Crazy: Cassimus Bringing New Discount Store Concept to Homewood – Over The Mountain Journal
- It’s a Packed House at Crazy Cazboy’s … – Facebook
- PHOTOS: take a sneak peek into Crazy Cazboy’s discount bins before their May 10th opening in Homewood – Bham Now
- Are weekend deals the key to Target’s holiday success? – RetailWire
DISCUSSION QUESTIONS: Is the Crazy Cazboy’s pricing structure nonsensical or sustainable? What might others learn by looking at such an experiment and can the lessons be applied beyond the liquidator/deep discounter space?