Related Material

Though sometimes discouraged discounting, done selectively using hurdles, can increase sales & profits by motivating new and/or price sensitive buyers.
A surprising real world example where identical products are offered for every different prices just feet from each other in the same store.
The Economist magazine might have provided the most famous example of decoy pricing but there are other examples in publishing.
Diminishing marginal utility, and pricing to account for it, becomes very simple when you think about the enjoyment you get from something like fresh brownies.
A surprising real world example where identical products are offered for every different prices just feet from each other in the same store.
No one size fits all when it comes to pricing/discounting. Different approaches appeal to different customers. The car wash gets this, florists should too.
A look at how aspects of a very effective pricing hurdle designed to sell premium ice cream can be used to sell more flowers in the retail flower business.
A price-sensitive customer is likely more focused on price than value, and there is no reason to cut your margins on your least expensive products.
An example of how one vendor increases sales by selectively discounting to customers most focussed on price and least likely to buy without a discount.
Another example that illustrates how the intersection of perishability and diminishing marginal utility determines discounting.
Attractions are a highly perishable product and operators are keen on revenue management – combining bundles and hurdles in an effort to maximize revenue.
A real world example of how a pizza place uses walk-in only specials as a hurdle to ensure they only discount to customer serious about saving money.
People that aren't in the business of selling have endless reasons you should never discount – here are three compelling reasons that you should.
Valentine's Day happens just once a year. A look at how modern pricing practices and a yield management approach can help florists generate maximum profits.
Appealing to a group sensitive to price (teenagers) Tuesdays create a hurdle for anyone willing to pay more. The bigger the discount, the bigger the hurdle.
There are two schools of thought on the use of rounded vs non-rounded (charm) pricing, and new research offers insight into which is best.
Bad weather can be used as a hurdle to selectively discount to those that are serious about saving and unlikely to purchase otherwise.
Restaurants use differential pricing balance supply (restaurant capacity) with demand over more than just one night.
"Cheap Tuesdays" at the movies are a great example of a self-propagating pricing hurdle – one that has the effect of making itself even more effective.
Discounting lens coatings leads to lower margins but greater sales and higher profits.
A new addition to our resources section illustrates some of the sophisticated pricing concepts involved in Boxing Day sales.
Ever fallen so in love with what you were saving that you paid less attention to what were you getting, and ended up with something you didn't need or want?

More Beyond Cost Plus

Search Beyond Cost Plus