Posted by Randall A Reinwasser on Tuesday, May 29, 2012
We're doing a little kitchen remodeling and have been price shopping some appliances. I know I'm not the first person to mention this, but the difference in price between the online retailers such as Amazon and the department stores is almost shocking. Here we're comparing a 27" GE Warming Drawer between the two retailers. Sears is charging $1,139.99 + 9% tax in Fountain Hills + free store pick-up = $1,242.
Amazon's $868 price is so far below Sears I had to double-check to make sure I was comparing the same warming drawer. This product doesn't qualify for Amazon Prime (free 2-day shipping) so I have to pay $32 for shipping which brings the total Amazon price to $900.
Why would anyone with a computer buy this product from Sears? You save $342 or 27.5% by purchasing the item thru Amazon. Moreover, it's not just warming drawers that are severely overpriced at Sears. Everything we've looked at follows the same pattern. Interestingly, Sears does have a Price Match Plus program where they will match any competitor's price and give you an extra 10%. Unfortunately, that deal only applies to physical stores such as Best Buy, Home Depot, etc.
These companies can't compete with Amazon and some of the other low-margin, internet only stores. Sears will be dead soon if they don't figure out a way to offer a reasonable price. Given that they're already 9% behind because they charge sales tax, I don't see how they can stay alive.