$ Pricing Made Perfect $

An interesting aspect of the upcoming Black Friday, is the actual sales themselves. Consumers really consider the deals on the day after Thanksgiving to be the best of the season. This may have been true years ago but I would argue that it is no longer the case for the most part. Yes, there are always products that have such a high demand that they sell out all in one day and in that case being first in line is important. However, coupons for this item and a sale price for that item are not always the lowest prices of the season anymore. Yet, so many people still choose to shop till they drop...literally in some cases.



A part of the retail industry that I find interesting is the promotional aspect, especially at the department store level. Every line of clothing has a marketer behind it trying to make it the best seller of the season. Sales to promote inventory turnover, sales to generate word of mouth for a new line, sales to free up space, all are promoted in one form or another even if its just using in-store signage.

I think it is a delicate balance to figure out what consumers want in regards to promotions. Too many and regular suggested manufacturer prices will always seem too high and consumers will expect the sale prices. Too few and the product may sit on a shelf gathering dust because it is priced out of trial range for many people. This is an aspect of retailing that I think would be very easy for a new store owner or manager to make mistakes in. Pricing is a tough job and in large department stores has an entire department devoted to it. I think it is important for all new retailers, (and established ones)to continuously consider their pricing strategy.