T.J. Maxx Offering 16 GB Wi-Fi iPads for $399?

[Lesser Evets]

Stores call this a lost leader, I believe.

They make NOTHING on the sale. But, that's the point: draw people into the store. People rushing to iPads go "woah--TJMAXX has x/y/z and with the money I saved I'll buy it here." Or people will come in for the first time and go "WOAH! TJMAXX is the sorta place I never knew existed, and I need this stuff."

It's a smart move on many levels.

 

[Surely]

iPad v2 coming soon?

Yes. Whenever Apple is ready to introduce an upgraded product, they sell the current version at TJ Maxx.

 

[srobert]

I'd rather pay an extra 100$ not to stand in that line.

 

[tripjammer]

Its confirmed...$399 on black friday!

This is the best apple product black friday deal....they will sell out for sure...

 

[GoodWatch]

There's something in this sentence I don't understand: "Based on the images presented, the offer appears to be legitimate, but it is unclear how the retailer is able to offer the iPad at such a low price". Why? Apple aren't' dictating the prices are they? There IS competion, isn't there? (Or not, if I look at all those prices that magically seem the same everywhere, with some small exceptions).

 

[izibo]

Stores call this a lost leader, I believe

I think it's called loss leader (as in, you take a loss by selling below profit margin).

There's something in this sentence I don't understand: "Based on the images presented, the offer appears to be legitimate, but it is unclear how the retailer is able to offer the iPad at such a low price". Why? Apple aren't' dictating the prices are they? There IS competion, isn't there? (Or not, if I look at all those prices that magically seem the same everywhere, with some small exceptions).

While I don't have the numbers in front of me, the cost to stores (Best Buy, local Authorized Apple Resellers) is well above $400. In other words, the authors of the article don't understand how TJ Maxx is possibly making a profit on these, or even coming close. I use to work at a CompUSA before it went under and the markup on items like this are pretty thin, which is why you see at most 5% off. This is especially true for some companies, like Apple.

 

[JilzVT]

Stores call this a lost leader, I believe.

They make NOTHING on the sale. But, that's the point: draw people into the store. People rushing to iPads go "woah--TJMAXX has x/y/z and with the money I saved I'll buy it here." Or people will come in for the first time and go "WOAH! TJMAXX is the sorta place I never knew existed, and I need this stuff."

It's a smart move on many levels.

Apple dealer markup is about 10% - they wouldn't be making nothing, they would be LOSING money on each sale. There's a big difference.

 

[saving107]

I wonder if Costco is mad, I mean they couldn't get the iPad but TJMAXX did, and for $100 before retail price. (I doubt TJMAXX got it officially, they probably spent the last 6 months sending employees to stand in line week after week at an Apple Store until they had enough in stock to distribute)



Costco Dropping iPod After Being Left Out of iPad Surge?
https://www.macrumors.com/2010/10/15/costco-dropping-ipod-after-being-left-out-of-ipad-surge/

 

[Justinf79]

If it's advertised, it's legit. TJX retail brand chain stores do not sell knockoffs or trademark-violating lookalikes. They tend to buy from the manufacturers themselves, not distributors, and the overwhelming majority of all their products are popular brand names. In fact, that's the hook for all TJX retail brand stores: Popular, pricey brands at lower prices.

This is why I love TJM. Been buying all my clothes from them for past 8 years or so.

 

[Detlev]

Not at all out of the ordinary for TJX. Been in retail many years and watched TJX purchase an entire product line that we carried, for the holidays. It was a one time purchase and they slashed the prices. Fortunately we still had a demand for them.

I've checked with a manager. It might be a regional special. Stores up here do not have them.

Correction: do not have them yet.

 

[Poll Smoker]

Stores call this a lost leader...

 

[8CoreWhore]

Brilliant marketing move. Take a small loss on these, get free mentions in the media.

 

[nefan65]

See.. New Jersey has more to offer than Jersey Shore

Like "My Big Friggin Wedding" ?

 

[brownieguy19]

Think about it this way...

Look at the press and the buzz TJ Maxx is getting by this? I'm guessing they look at the $100 loss per iPad as a marketing cost, or similar form of advertising dollars better spent.

 

[brownieguy19]

Brilliant marketing move. Take a small loss on these, get free mentions in the media.

+1. Spot on. You can't buy press like this.

 

[chris975d]

There's something in this sentence I don't understand: "Based on the images presented, the offer appears to be legitimate, but it is unclear how the retailer is able to offer the iPad at such a low price". Why? Apple aren't' dictating the prices are they? There IS competion, isn't there? (Or not, if I look at all those prices that magically seem the same everywhere, with some small exceptions).

Typically, manufacturers tell a retailer what their "MAP" (minimum advertised price) can be (I know this because it's also done in my line of work, golf course management). This is the lowest price that a retailer is allowed to advertise a product at, and still be able to purchase it straight from the manufacturer. The manufacturer typically has a retailer sign a contract/agreement stating that they will abide by the MAP, or have their purchasing account pulled. That is why you see the iPad's pricing being virtually the same (they allow for a few dollars difference, plus or minus) everywhere. If you violate that as a retailer, you can no longer purchase straight from the manufacturer (in this case, Apple). That is why probably why engadget is saying they don't know how they are able to sell it at such a low price. It's probably not straight from Apple, and may be through a refurbishing company instead. Manufacturers (like Apple) do this so that they control the pricing of their products, and claim it's to make things fair for all retailers, as retailers can't entice customers to buy the product by cutting the profit margin extremely low and try to make it up with volume.

 

[ljova.com]

Nice! iPad2 is coming!

I tend to agree. TJMaxx is a closeout store, not so much a discount store. I've never seen them sell any popular electronics - only "as seen on TV" stuff and other closeout-type stuff that sells poorly elsewhere.

This likely means that Apple is dumping the original iPads onto the market to make room for a new one...

Come on, Apple, release the iPad2! We all could use more FaceTime devices.

 

[ljova.com]

Yes. Whenever Apple is ready to introduce an upgraded product, they sell the current version at TJ Maxx.

oh yes? you've spotted previous Apple products at TJM before?

 

[rjohnstone]

TJM/Federated stores buy close outs, overstocks and refurbished items for resale.
This is how they keep prices down.
I have a feeling these may be factory reconditioned units that Apple let go as a one time bulk sale to clear inventory.

 

[chris975d]

oh yes? you've spotted previous Apple products at TJM before?

I take it you're not familiar with Surely's sarcasm, are you?

 

[srobert]

The catch usually is…

*While stocks last.

Is there laws in the US on how small their stock is allowed to be to advertise the deal ?

 

[Sykotic]

Springfield, MO store had 10. All have been sold, though.

 

[jav6454]

Why sell at a loss?

 

[ljova.com]

I take it you're not familiar with Surely's sarcasm, are you?

vat? people here have a personality?

 

[rjohnstone]

The catch usually is…

*While stocks last.

Is there laws in the US on how small their stock is allowed to be to advertise the deal ?

More than one.