Sale Pricing Strategies: Should I Buy Here Now or Wait?

Sale Price Factors: Should I Buy Here Now or Wait?

The internet provides a healthy medium for competition, which is especially true in regard to pricing. Marketers know that buyer decisions are based largely on pricing, sale pricing [as well as other incentives like coupons, free ship, etc].

Specifically, without an in-depth analysis there is a variety of rationale that are related to pricing strategies that companies use, that come to fall under the auspice of 'sale'. Knowing these can help you get the better deal.

Mainly, those related to their price floor; the bottom price that the company does or should know what it can sell the product or service for, and still stay afloat, and the list price -- that price at which it is normally sold:

price cut - the companies want to take the competitors business away. spotting this can mean there is chance of comparable deals existing; like-competitors often must respond with price cuts, etc. (companies also conceal this by the offer of 'free giveaways' which is really a tactic to preserve their prior pricing) See this, and you may want to wait or keep looking for the better deal! This may be as simple as seeing an advertised "price cut" if in fact this is what it really is.

price reduction- this is more benevolent, and is introduced to simply bring in the numbers. Do you know of a company that uses this as a mainstay? The price reduction occurance can sometimes mean a more reliable source to come back to, time and time again. Notice companies/ sources that discount periodically with posting sale prices.

Notice the Strategies - a Deciding Factor:

psychological pricing: the $9.95 routine, is it really less than $8.60 as the mind may want to say? Don't caught in this snare. Try to be a little calculating and move on. You can always come back.

loss leader pricing: selling intentionally low simply to show you other product lines in the store or onsite. Bread in a grocery store is a common example. another is the product giveaway. [free glass vase with a dozen roses]. Many prices have this design, and many store know that buying characteristics of a respondent to this tactic. Deciding if you want to buy or wait can be simplified by just telling yourself, and the company " all I want is the original offer" and stick to it before even seeing their other offerings. Also, don't be afraid to question if there are any additional related obligations with the offer. Don't be afraid to back out. Remember, developing a strong primary interest through you is their intent.

slide down pricing: this is lowering prices by companies to bring in dollars from consecutive layers of demand. Sounds a little complicated, but this could be used especially by companies stable in their environment, when detectable areas of demand seem to be going unmet. Should you buy or should you hold off? You may want to seek out this strategy if your targeted purchase is a higher ticket item. Does the company you are shopping from offer broad product lines, or at least represent them to help enable this?

skim the cream pricing: happens when there is usually a unique product that is perceived to have a high worth with little or no competition. Such as a new product being introduced to the market, the next generation product. this happened with the first companies introducing DVD PC writers, or many computer technologies for that matter. For finding sale prices on these products, unless you are sure of your purchase and price is a secondary consideration -- a await and see approach can be instrumental with finding larger savings. Or if possible try to sense if other buyers for these products who don not mind paying the premium, have reached or are nearing some general degree of satisfaction [customer reviews posted onsite, the search engines, industry or consumer reviews, etc.] If this leans toward a yes, prices are likely to drop so wait.

Above all, know that some of the most successful companies who are customer or buyer-oriented base their pricing strategies on what you perceive the value of the purchased item or service to be. Sellers that are aware of buyers that shop price, use other incentives and variables.