Shoppers appear to be opening up their wallets a bit more widely this holiday season much to the delight of retailers.
Two factors account for this year’s uptick. First, shoppers feel somewhat better about the overall economy. Despite an unemployment rate that’s been stuck in the mud near 10% for more than a year, the 90% who are employed have probably seen their paychecks rise in recent months for the first time in a couple of years.
The second factor for an improved holiday retail season can be attributed to the retailers themselves. There’s nothing like two years of a bad economy to help get the creative pricing juices flowing.
Many businesses have found ways to trim margins even further, while passing on those savings to the consumer in the form of lower prices and/or other enticements, such as free shipping. And shoppers seem to be responding.
Good old-fashioned price trimming appears to be the new fashion this season. Clearly, a business cannot survive indefinitely on charging less for products or services. Yet, a short-term price cutting strategy that allows a business to move products, reduce inventories, increase cash flow, attract new customers or all or some of the above can indeed pay dividends.
So feel free to take a page from both the brick-and-mortar and the online retailers this holiday season, and think about dropping a price or two on some of your company’s products or service offerings. Or, put your heads together on any other creative pricing strategies that could serve to spark additional sales.
It may help put a new pep in your company’s step and usher in some holiday cheer as you head into the new year.