Among the various sales promotion tools: contests; freebies; loss leader; point of sale displays; premiums; prizes; product samples; and rebates; loss leaders are the most attractive. Loss leaders are items that I want to purchase and the reduction in price drives me to purchase, just to receive the discount and have the product on hand when I may run out, and eliminate purchasing at full price, when I run out. Product samples often entice me to try new items and purchase as I have discovered that I like the product. Freebies also drive my purchase, as getting something I want in addition to that product I was planning on purchasing increased the power of my money. Point of sale displays remind me of something small that I may have forgotten about; while contests, premiums, rebates, prizes are usually not drivers of my shopping habits unless at an establishment where I do not frequently visit. Those places are ‘treat’ shopping visits, where I can purchase or receive something that I do not regularly need.
The idea of value pricing can be applied to many retail establishments, as there are items that people will pay a little more for depending on the value and the product. I see that working well with clothing retailers, especially high end retailers such as Saks Fifth Avenue, Neiman Marcus, and Lord & Taylor. While these high end retailers have outlet stores which carry lower price items, incorporating value priced items alongside higher priced ones, may drive consumers to purchase a high end jacket with an affordable pair of pants, instead of the higher price one that is part of the line.
Use your promo and get a custom paper on
"Sales Promotions".
Pricing Concepts
Especially in the recovering American economy, many people are conserving money and buying only what they need, and looking to get the most for their dollar. Yet, people are still interested in receiving high end services, such as interior design services. Similar to online sites where freelance writers compete for projects, an interior design service company could be created to provide high end designer services, while keeping costs down through competition and limiting the amount of personal interaction between designer and customer, which is where the increased costs are found. Television shows have driven the demand for magazine rooms for many people. Studying the yield management of accessory, furniture, and home improvement stores, consumer buying habits can be used to measure the demand for interior design. The site would supply services, based on the demand of consumers giving them a luxury product, affordable for every budget.
Pricing would be set by the hour, as designers compete for the project and set pricing based on the scope of the project. The more experienced the designer, the higher the hourly cost, yet people would be able to see each designer’s portfolio and chose a promising student designer. The more in demand a particular designer, the higher the charge, as well as the more in depth the project, the more time involved, thus leading to a higher price. The competition would keep prices competitive, allow the designers to build a resume and portfolio, and keep the industry fresh.
