How we change what others think, feel, believe and do
Multiple Price Cuts
In a sale, one way of displaying prices is to show that the price has been reduced more than once.
Show the 'original price' (or 'recommended price' or 'was'). Cross this out. Add another price (maybe marked 'reduced to' or 'now'). Cross this out and add another new, lower price.
Another way of doing this is with simple price stickers that are crossed out and other stickers added (note: do not just put one sticker on top of another unless it is clear that the price has been cut several times).
Indicate that the price will not be cut further, for example with big signs saying 'Final Reductions'.
A shop has a bin outside the door with small goods that have been reduced several times and are a bargain. This brings customers into the shop where more active selling can take place.
A market trader starts his spiel by saying the bags he is selling retail at $100. He asks 'who will give me $80' and a few hands go up (from stooges in the crowd). He then says 'Keep that money. Who will give me $50?' A lot more hands go up and he sells quite a few bags.
When a price is cut more than once, it makes the price offered particular attractive. Whenever a price is cut it may well seem to be a bargain, so if it is done again, it seems to be even more of a bargain.
The amount being cut may or may not be important. A small cut followed by a larger cut seems like particular value, as if the retailer is selling at a loss in order to shift the goods. Several small cuts may seem to be tricky, although it is amazing how few people notice this.
The best number of cuts is often two. Cutting the price more than twice can make customers wonder why the goods have not sold beforehand and they could guess that there is something wrong with the product.