Glossary /
High-Low Pricing

High-Low Pricing

A strategy where a company sets an initial high price for a product and later reduces it through promotions or markdowns.

This approach relies on periodic sales promotions to stimulate consumer purchases by offering temporary discounts. By fluctuating between higher and lower prices, businesses aim to attract both price-sensitive and value-conscious customers. Understanding and effectively implementing high-low pricing help companies manage inventory, drive sales, and maintain profitability.

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