Promotional Pricing Examples
- Buy one get one free
- Save 20% off today
- Black Friday and Christmas sales
Deeper Insights Into Promotional Pricing
Promotional pricing artificially increases a product's value for a sales boost, often reduced by a percentage amount for a limited duration and therefore deemed to be on sale. In addition to a lower price, a promotion increases value by creating a perception of time-based scarcity. Products perceived to be scarce are of much greater value than abundant products. Thus, most promotions are temporary.
The act of offering a lower price temporarily is to enhance the effectiveness of sales efforts to cost sensitive users. Promotional pricing can also act as a sales initiative amid launching products or services.