The dark side of price promoting is that it has become a race to the bottom. And it’s really driven by the fact that if one’s product, brand or retail experience is not different and unique enough that it can’t be matched by hundreds of other competitors in our over-stuffed marketplace, price promoting becomes the weapon of choice. Furthermore, price promoting is not just represented by sale signs, price tags, coupons, ads, algorithmic “robo-pricing,” and/or the myriad of other deals for products and services.
How long and how deep will this “race” go on before the aggregate effect on consumers’ perception of the true value of the brands, designers or retailers becomes as confused as the “tricky” pricing strategies? And even worse, it will ultimately align value with the lowest possible price placed on it. In other words, it behooves brands and retailers to “beware of what they ask for” by diminishing the value proposition to “….buy me, I’m cheap.”
The paradox of course, is that while the retail consensus is that consumers are “hooked” on the “drug of sales,” the longer and more persistently brands and retailers “push” the drug, the more the process becomes an implicit admission that their brand or store is worth less.
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