Recently, we wrote about many restaurants making their menus too complicated, thus leading to significantly slower service and too many choices.
Now, we have a related question: Do some retailers offer too many prices for their product assortment? In many cases, the answer is yes.
As reported by Tom Ryan for RetailWire:
“According to a survey by Software Advice, 52 percent of retailers use more than 10 pricing tactics, although most revolve around a strategy of discounting. The study questioned retailers about their experiences with 13 different pricing approaches and found only two percent used two or fewer pricing tactics. The top eight were:”
1. Discount — “Discounts based on either product quantity, customer loyalty or tied to specific promotions.” 2. Bundle — “Multiples of the same product are sold together for a single price, typically lower than purchased individually.” 3. Below competition — “Products priced lower than the closest competitor pricing.” 4. MSRP (manufacturer’s suggested retail price) — “Designed to maintain the manufacturer’s margins and brand perception.” 5. Odd pricing — “Ending prices in odd figures, such as 99 cents, for a psychology play on consumers.” 6. Price lining — “Prices set to create distinct categories of products, signaling a level of quality to the customer.” 7. Dynamic — “Prices change based on the willingness of the customer to pay.” 8. High-low — “Most products are priced above market rate with discounts offered on select items to attract customers.”
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