Promotional Pricing: The Advantages of Reducing Your Product Price

May 14, 2015

Promotional pricing is the reduction of cost on selected items throughout a store. It is usually practiced in short time frames to grab the attention of budget conscious consumers. This strategy is commonly practiced amongst stores to promote a release or to clear the old stock to make room for new items. The key to bringing in a larger profit through promotional pricing can be achieved if it is used effectively.



The incoming traffic newly received from promotional pricing breaks into the scene as the market is largely made up of budget conscious consumers instead of high-income shoppers who are willing to spend. The announcement of the drop in price is profoundly attractive to this consumer group. As promotional pricing is practiced in intervals over selected time periods, brands expect loyalty in return of this movement.

Psychological Influence

Part of this handling is the huge psychological advantage it has over consumers. Sometimes flashing red or green sales tags can gravitate a browser’s attention. The perception in a buyer’s mind, when they see a sale, is the opportunity for them to buy a worthy item and to pay less than it deserves, is considered a steal. Though there might be other stores that sell the same item that is on discount in this store as a regular price on theirs, people are still pulled towards the idea of a good deal instead.  

Increased Sales

One objective of promotional pricing that overrides the others, is to increase the revenue income within a short time period. The hope is that after the promotion period is over, customers still continue returning because they found value in shopping with this particular brand. Other benefits can include to maintaining consistency through these discounts.


Promotional pricing can be used as a form of reward and incentive towards returning customers or subscribers. It helps solidify the brand’s relationship with it’s customers. Rewards could be used as a sign of encouragement that leads to more frequent purchases made.