Hi-Lo Pricing
Hi-Lo pricing is a pricing strategy used by retailers to attract customers by offering both high-priced and low-priced products. This strategy involves offering high-priced products at regular prices but also providing discounts and promotions on certain items to appeal to price-sensitive customers.
For example, a clothing store may offer designer jeans at full price for customers willing to pay a premium, but also have a clearance section with heavily discounted jeans for customers looking for a bargain.
This pricing strategy allows retailers to cater to different customer segments and maximize their sales potential. By offering a range of prices, retailers can appeal to both luxury shoppers and budget-conscious consumers.
However, some critics argue that Hi-Lo pricing can lead to customer confusion and erode brand loyalty if not implemented carefully.
Overall, Hi-Lo pricing can be an effective strategy for retailers looking to capture a wide range of customers and increase sales.
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