Marketing Pricing Strategies - Attention Getting

Today I am giving two proven marketing pricing strategies to try. A lot of people still do not understand how the law of supply and demand impacts their business, and how it can also affect your pricing strategies. So here are two proven pricing strategies to try based on when times are busy and times are slow.

When Demand is High

For example, if your business is crazy busy right now and you have more sales than you can handle, do not turn any business away (because these customers might never come back). Instead raise your prices, if only temporary, and especially if your supply or resources is limited.

Another good time to raise your prices is close to the last days of any major buying time for your business. For example, people who wait until the last minute to buy Christmas gifts or Mother’s Day gifts, will pay a premium for their procrastination, likely due to diminished supply.

Remember, people will spend more when supply is scarce and when the need is urgent. That is why toilet paper and hand sanitizer shot up in price during the initial stages of COVID-19. I am not saying to gouge people, that’s wrong, but a reasonable increase in price of 10 to 25%.

When Demand is Low

Now, what about when demand for your products is low? This happens when a product is nearing the end of its life cycle or the market is saturated with competitors. This is when you should have a sale, especially if your supply is high, and a significant sale to get rid of inventory so you are not stuck with it.

For example, winter fashions featuring a trend that might not be around next winter, are best to get rid of at deep discounts of 40 to 70% in February and March. Better to make some money then to get stuck with the inventory. Plus, these new customers might turn into return/repeat customers.