High-low pricing
High-low pricing is a marketing strategy where a company initially prices their products high, then offers discounts or promotions to attract customers. This strategy creates a sense of urgency and incentivizes customers to make a purchase before the price increases again.
One example of high-low pricing is the Black Friday sales event, where retailers offer steep discounts for a limited time to drive sales. Another example is luxury brands that release limited-edition products at high prices, then discount them at outlet stores to sell off excess inventory.
While high-low pricing can attract customers and create buzz around a product, it can also train customers to wait for discounts before making a purchase. Additionally, it can erode brand loyalty if customers feel they are being overcharged when products are not on sale.
Overall, high-low pricing can be an effective strategy when used strategically and in moderation. It is important for companies to carefully consider the potential drawbacks and long-term impact on their brand before implementing this pricing strategy.
For more information on high-low pricing, you can visit the Wikipedia page on High-low pricing.