Price Strategy In Recessionary Times

As I read the daily news, it’s hard to find much to get excited about.  With the lowest interest rates in decades, we continue to see banks tighten their belts and pinch their pennies.  Having just spent trillions of my money (and yours), the government seems to be at wit’s end regarding a solution for today’s money woes.  When will it end?  …I’ll give you my two cents in a future post, but what I wanted to address here is how does this murky economy affect pricing strategy for retailers and beyond?

With the few neurons that I have remaining from my college days, I remember one basic tenet of pricing theory …Never back down on your prices.  This works well in a good economy.  Retailers set a price and stick with it.  It forms a base for their brand identity (premium versus value) and it helps define their target market. Continue Reading…