High-low_pricing
High–low pricing
Pricing strategy
High–low pricing (or hi–low pricing) is a type of pricing strategy adopted by companies, usually small and medium-sized retail firms, where a firm initially charges a high price for a product and later, when it has become less desirable, sells it at a discount or through clearance sales.[1]
Prospective customers may be unaware of a product's typical market price, or have a strong belief that "discount" is synonymous with "low price", or have strong loyalty to the product, brand or retailer.[2] High–low pricing strategy is effective because of consumer preference and shopping frequency. Consumers with higher income strongly prefer the high-low pricing and they shop frequently in the brand stores they like.[3]