Various Methods Price-based selling

1 various methods

1.1 price-matching guarantees
1.2 price slashing
1.3 discounting
1.4 haggling

various methods
price-matching guarantees

price-matching guarantees commonly used in consumer , industrial markets. lowe s home improvement warehouse great example, state ‘lowest’ price store, , match competitors. best buy has been known price-matching guarantee well. while store price matching guarantees has no fear of losing customers rivals’ price cuts, has every incentive raise own price charge higher price loyal customers. anti-competitive tactic warns competitors not attempt steal market share undercutting prices.

price-match guarantees criticized being misleading consumers. guarantees typically require shoppers provide proof of lower advertised price on identical item in stock @ nearby competitor’s store before price match approved. however, many big-box retailers work directly manufacturers , sell products unique model numbers. result, retailer can deny price-match request, no other store carries identical item. other common reasons denial: competitor not local, ad lists percent discount rather specific price, or customer doesn t offer acceptable proof of competitor s price. if criteria met, retailers grant price-matching requests on case-by-case basis @ discretion of store employees.

price slashing

price cutting, or undercutting, sales technique reduces retail prices level low enough eliminate competition. businesses implement way under-cut competition , offer best price consumer.

discounting

discounting seen in every retail store, , grocery store. discounting present in every business in way, whether coupons, advanced purchases, or bulk buying, businesses quick offer pricing discount. coupons , promotions give economic incentive customer use when purchasing brand. effect on consumer redemption of coupons has been positive attracts customers, , gives them interest in particular brand. on other hand, discounting can hurt business seen nordstrom past holiday season. clothing retailer reported fourth quarter earnings fell 68%, in large part due heavy discounting. according cornell university study, in hotel business, discounting in attempt gain more occupancy more harm good, lowering revpar , creating less profit.

haggling

haggling, otherwise known bargaining, present in businesses items have no fixed price. sellers price item higher want sell it, knowing buyers going want negotiate price. houses, cars, , services common products sold using model.