17 Sep Does promotional pricing drive sales?
Most of us will accept that promotional pricing as a strategy is a great way to get the attention of your prospects and returning customers, but can too many promotions lead to an expectation of things always being on sale? In the run up to Christmas, with Black Friday and then pre-christmas sales, is this becoming less effective?
Midlands Retail Forum vice chair Naeem Arif said Black Friday was an advantageous period for retailers, especially creating that sense of urgency – ‘once it’s gone, it’s gone’. A good sales person can use that to their advantage in completing a sale with a customer who maybe thinking about whether to buy now or later.
A lot of customers are still very price conscious, they look at a price-point and think it sounds like a good deal and go on that basis. Despite the availability of technology, they may not know how much a competitor is selling the same product for, but as they are being ‘something on sale’ they feel they are getting a good deal.
Although Black Friday can cause sales numbers to surge, it also makes it increasingly likely for customers to return items they had bought during the sales period. High returns are often caused by impulse buys, when a customer realises they don’t actually need a particular item bought on sale and have a change of heart. For retailers, it’s expensive, represents lost sales, and damaged or opened inventory can take up extra staff time.
To read the full article visit – https://www.retailgazette.co.uk/blog/2019/01/promotional-pricing-drive-us-buy/