Promotional Pricing

• Prices are reduced for a short time. Used by a company that wants to inject new life into a product or reduce stock levels quickly.
• Advantages:

  • Consumers benefit from the low price.
  • Increases the cash flow of a business.
  • Helps to reduce stock levels quickly.
  • Can boost sales in an established product or create interest in a new one.
• Disadvantage:

  • Lower profits as prices are reduced for a short time.