What is Promotional Pricing in Retail? Explained

Promotional pricing in the retail sector involves temporarily reducing the price of a product to stimulate sales and attract customers. This strategy is often applied during specific periods or events, such as holidays, clearance sales, or product launches. Promotional pricing can take various forms, including discounts, buy-one-get-one-free offers, or bundled deals. The goal is to create a sense of urgency and encourage consumers to make immediate purchasing decisions. While promotional pricing can drive short-term sales and clear excess inventory, retailers need to carefully manage the strategy to ensure it aligns with overall business objectives and maintains profitability.