Page 77 - Spring Into Markets

Discounting
Offering specially‐reduced prices can be a powerful tool. Lowering a product’s selling price can have an immediate impact on demand. This
could be a clearance discount to sell old
stock, a discount for making multiple
purchases of the same or similar products, or you could offer bulk discounts to encourage larger orders, e.g. volume sales of best sellers.
But a word of warning, if you discount too much, customers may question your full‐ rate pricing or see you as a cheap option, making it difficult to charge full prices in the future.
Odd value pricing
Using the retailer's tactic of selling products for £9.99 instead of £10 can be
useful if price is an essential part of customers' buying decisions. Some customers perceive odd value prices like this as being more attractive. The perception in this instance is that the product is ‘£9 something’ and not £10.
Value pricing
Offering specially packaged or promoted ‘value’ products, ranges or services. This has been seen increasingly in the last few years as a response to reduced consumer spending during the recession and in instances of increased competition.
Remember... reducing prices dramatically or changing
the price of a product too often can have the opposite effect and can actually result in reducing your product’s perceived value.
Guide 11
Creating ‘Good Value’ 77