Karm City

How to make money running a “sample sale” site

As evidenced by Gilt:
Step 1) Establish the perception of selling goods at an incredibly steep discount and wait a few months.
Step 2) Start displaying an inflated “original price” on products.
Step 3) Sell products at prices that are higher than the actual retail price.

For example:
This blender is listed today on Gilt Home, with a supposed retail price of $100. They’re offering it at a “cheap” $49.

But, do a quick search on Amazon and what do we get? The exact same blender for $39.

No “exclusive membership” necessary.

One could almost consider this a bait and switch, but it’s up to the consumer to do some research to see if they’re truly getting a discount.

The only true value Gilt offers is in its clothing department, where it often difficult to access the styles and brands offered unless you took a trip to New York. For that, I’m happy to pay a slight premium.