Sale PricePutting items on sale by offering a percentage or a dollar discount such as 50% or $50 dollars off.
Multi-Buy PromotionOffering a deal with multiple purchases such as buy two get one free.
Loss LeaderA loss leader is a very low price for an item that is designed to get your customers to visit.
CouponsIssuing coupons to customers. This is a form of price discrimination as price insensitive customers may not bother looking for coupons.
Deal of the DayRegular deals, often loss leaders, that are designed to encourage regular and habitual visits.
Regular SaleA big sale whereby all items or most items are discounted that occurs at regular and predicable intervals. For example, a grocery store that is 5% off on Tuesdays. This implements price discrimination as price sensitive customers will show up at the sale and price insensitive customers will shop at their own convenience.
Sales EventA sale that is combined with promotional features such as contests, free food and giveaways. For example, a vehicle dealership that provides free food at a sales event combined with a variety of one-day-only price discounts.
Clearance PriceSteep discounts for unpopular or out-of-season items that are designed to clear inventory.
Seasonal SaleA sale that attempts to prevent inventory problems by discounting seasonal items in the middle of the season. Common in the fashion industry.
Limited Time OfferAn offer that expires very quickly so as to create a sense of urgency. For example, an ecommerce page that places a countdown timer in an ad for a 12 hour sale.
Algorithms & AIComplex pricing strategies that are implemented as a process of testing and refinement using automation. For example, an algorithm that offers discounts when inventory is high for an item and scales back these discounts as you begin to sell out.
Volume DiscountA discount for buying a number of items. For example, buy 10 and get 10% off.
Spending ThresholdA discount for spending a preset amount such as spend $100 and get $20 off.
Progressive DiscountA discount that goes up as you spend more. For example, spend $100 get 20% off, spend $200 get 30% off.
Psychological DiscountingDiscounts based on psychological pricing for example $19 may be perceived more positively than $18.99 because it feels honest and has less digits.
All Inclusive PricingGuarantees that the customer won't be hit with extra fees at check out. For example, free shipping on an ecommerce site.
New Customer PromotionA price promotion that is only available to new customers.
Subscription DealA price that is only available if you subscribe to regular automatic purchases that can be canceled at any time.
Contract DealA large discount for locking into a contract. This may be prohibited in some cases. For example, telecom companies are prohibited from locking customers into their services in some countries.
Targeted DealA deal that is only available to a targeted group of customers such as "Kids Eat Free" that targets a family demographic. Such offers can also target individual customers such as a large discount for people who stayed at a hotel chain regularly in the past but have suddenly discontinued this purchase behavior.
Financing DealReductions in interest rates that emphasize that you can buy without paying much now.
NotesPricing practices are often regulated such that various laws may apply to promotional practices in your jurisdiction.
|Overview: Price Promotion|
The practice of reducing prices to achieve marketing objectives.