Transcript Holiday Pricing Strategies.ppt

Holiday Pricing Strategies
Laura Hulquist & Red Nixon
What you need to know
about holiday shopping
• Know when to pull
the trigger
• Be wary of retailers’
tactics
• Watch for web deals
• Use your smart
phone
• Get in under the
wire
Know When to Pull The Trigger
• Everyone knows great deals can be found on
Black Friday but most don’t realize better deals
can be found closer to the holidays
– Low end electronics are discounted early where brand
name merchandise wont be discounted until later
– Expect low prices on items like toys in
the weeks leading to the holidays, but
they may go back up one week before
for last minute shoppers
– Clothing retailers often wont discount
merchandise until closer to the
holidays
Be Wary of Retailers’ Tactics
• Retailers know how the mind of a shopper
works and how to maximize their purchases
– The merchandise retailers want to sell the most is
positioned at eye level in their prime locations to
tempt you into buying
– Sales language including “limited time”, “doorbuster”, and “one time” are used to persuade
shoppers to buy now or regret their missed
opportunity
– Special extended-warranty offers
are also used to bring in more
money, though most don’t need them
Watch for Web Deals
• E-Tailers have tactics of their own for the
holidays
– Expect more e-mail marketing during the holidays
– E-Tailers use techniques such as countdown
clocks, sales items, coupon codes, and discounted
shipping to entice customers to buy
– Customers are often willing to spend more if it
means they will get free shipping. This is only a
good strategy for customers if they are getting
better deals than they can find anywhere local.
SALE
Use Your Smart Phone
• New smart phone
applications allow users to
access coupons or compare
prices on the spot
– Apps such as Red Laser and
Shop-Savvy for allow users to
scan product bar codes and
receive user reviews and
prices from other retailers
– Apps such as ShopKick
automatically alerts users of
in-store discount offers as
they walk into a mall that
supports the application
Get in Under the Wire
• Even if you are a last
minute shopper or forget
someone on your holiday
list there are still great
options available for
purchase
– Virtual gift cards can be
purchased online and sent
through email
– New federal laws mandate
that gift cards can’t expire
for at least 5 years
Resources
Gerstner, Lisa. "What You Need to Know about
Holiday Shopping." Kiplinger's Personal
Finance (2010): 87. Print.
http://www.youtube.com/watch?v=1QZlyAgIVf
M
http://www.shopkick.com/
http://www.blackfriday2010.com/