Products/services for sale at a lowered price for a limited time period only
Answers
Answer:
No single discount pricing strategy works best in every situation. The strategy you employ rises from the particular product – especially its relevance to the market and its sales history.
One reason for offering a discount is to make a new product introduction into an event. The underlying strategy here is to announce a new product along with a special discount offer good for either a limited time or for a limited number of customers. This strategy calls attention to a new product by offering a lower price to those who respond fastest.
Explanation:When you have a product with a long sales history that's suffering from declining sales, there are at least two good strategies to revive sales. The first works when the decline has to do with increased competition over price with competing products. Drop the price, of course, but the drop will either stimulate sales or have no great effect, depending on how you pitch it. One way is to call attention to your problem:
"Frankly, we're dropping our price to compete with competitors who've seen our success and entered the market with a cheaper product. I'd like to get X into the hands of new buyers who can then see the difference between X and our imitators. This price won't last forever, but for a limited time I'm going to not only meet but beat the low prices of our imitators."
The other approach is appropriate when a product is approaching the end of its sales cycle. That's when your approach is "Buy now before it's gone forever." You could, perhaps, pitch the product's illustrious history and pedigree and make it clear that this is the last chance to buy this unique product. You can use the same strategy to get rid of old stock.