1. Let's discuss purchase experience when drawn into a store due to a sale.

What are implications of this chart and what should it tell stores about the sales they advertise? What does it tell us about why stores advertise sales where they reduce margins or even lose money on the item they put on sale?

2. Let's discuss pricing a little further. When you set the pricing for a product, you must consider:

Does the customer perceive the value?

Does the customer trust the seller?

• Did they Inflate the MSRP?
• Did they Raise price prior to sale?

Must seek to reassure the customer that the price discount is real - Here are some techniques:

• Stress the impact of the price
• If price is high focus on the dollar amount they save
  • (e.g. $100 off a $600 item dont mention = 16% discount)
• If price is low focus on the % discount
  • (e.g. $1 off a $3 item.= 33% discount Dont mention its $1 off)
• If price is low focus and dollar amount relatively significant mention both.
  • (e.g. $10 off a $30 item mention both dollar savings and percent savings.)
• Use declarative wording to reinforce the value
  • Now only, Compare at, Special, Buy one get one free

What techniques have you seen besides these?

How have you seen these techniques work on other people?