I ordered the New iPad on the day it was released. I never do this, but after watching Apple’s pricing over the years I’m confident they won’t be lowering their price for a year or so when they release the next version. Why not buy immediately? Apple has trained me what to expect.
An attendee in a presentation last night described her experience with Banana Republic. She said, “I used to shop at Banana Republic and sometimes buy at full price. However I signed up for their email list and I get coupons in the mail every few days. Now I don’t buy anything there unless I get a discount.” Banana Republic trained her to only buy with coupons.
JCPenney is trying very hard to retrain their customers. Customers used to wait for sales. JC Penney wants to give them good pricing every day and make their customers confident in these prices.
Here’s the point. You are training your customers with your pricing behaviors. Whatever you do frequently, your customers will come to expect. Do you have frequent sales? Do you hold price? Your customers learn your behaviors and use that to help them make their best decisions.
This is not a bad thing. It’s a fact. You are training your customers. The question is are you training them to behave in the manner you’d like?
Mark Stiving, Ph.D. – Pricing expert, speaker, author
Photo by skycaptaintwo