OnDemand WTP Pricing Research

RetailWire Discussion: Are retailers’ pricing strategies too complicated? | RetailWire

According to a survey by Software Advice, 52 percent of retailers use more than 10 pricing tactics, although most revolve around a strategy of discounting.

The study questioned retailers about their experiences with 13 different pricing approaches and found only two percent used two or fewer pricing tactics.

The top eight were:

1. Discount: Discounts based on either product quantity, customer loyalty or tied to specific promotions.

2. Bundle: Multiples of the same product are sold together for a single price, typically lower than purchased individually.

3. Below competition: Products priced lower than the closest competitor pricing.

4. MSRP (manufacturer’s suggested retail price): Designed to maintain the manufacturer’s margins and brand perception.

5. Odd pricing: Ending prices in odd figures, such as 99 cents, for a psychology play on consumers.

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RetailWire Discussion: Are retailers’ pricing strategies too complicated?

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