Promotional Pricing

Promotional pricing is a sales strategy in which a seller or a brand temporarily reduces the price of a product or a service with the goal to attract more customers. Promotional pricing works by increasing the customer’s urgency to purchase with a limited-offer deal.

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.

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Related Keywords: Predatory PricingDiscountYield ManagementDynamic Pricing