High-low-pricing
High-low pricing (HLP) is a retail strategy where a business sets relatively high prices for its products or services for most of the year, only to offer them at a significantly reduced price for a limited time. This tactic aims to create a sense of urgency and value for the consumer, encouraging impulse purchases and driving sales volume during promotional periods.
Tumisang Bogwasi
Tumisang Bogwasi
What is High-low-pricing?
High-low pricing (also known as HLP) is a retail strategy where a business sets relatively high prices for its products or services for most of the year, only to offer them at a significantly reduced price for a limited time. This tactic aims to create a sense of urgency and value for the consumer, encouraging impulse purchases and driving sales volume during promotional periods. Retailers often use this strategy to clear out inventory, attract new customers, or boost sales during specific seasons or holidays.
The effectiveness of high-low pricing relies heavily on consumer perception. By frequently offering sales, businesses can create an expectation that the
