Holiday Pricing Strategies Laura Hulquist & Red Nixon

What you need to know about holiday shopping Know when to pull the trigger Be wary of retailers’ tactics Watch for web deals Use your smart phone Get in under the wire

Know When to Pull The Trigger Everyone knows great deals can be found on Black Friday but most don’t realize better deals can be found closer to the holidays – Low end electronics are discounted early where brand name merchandise wont be discounted until later – Expect low prices on items like toys in the weeks leading to the holidays, but they may go back up one week before for last minute shoppers – Clothing retailers often wont discount merchandise until closer to the holidays

Be Wary of Retailers’ Tactics Retailers know how the mind of a shopper works and how to maximize their purchases – The merchandise retailers want to sell the most is positioned at eye level in their prime locations to tempt you into buying – Sales language including “limited time”, “door- buster”, and “one time” are used to persuade shoppers to buy now or regret their missed opportunity – Special extended-warranty offers are also used to bring in more money, though most don’t need them

Watch for Web Deals E-Tailers have tactics of their own for the holidays – Expect more marketing during the holidays – E-Tailers use techniques such as countdown clocks, sales items, coupon codes, and discounted shipping to entice customers to buy – Customers are often willing to spend more if it means they will get free shipping. This is only a good strategy for customers if they are getting better deals than they can find anywhere local. SALE

Use Your Smart Phone New smart phone applications allow users to access coupons or compare prices on the spot – Apps such as Red Laser and Shop-Savvy for allow users to scan product bar codes and receive user reviews and prices from other retailers – Apps such as ShopKick automatically alerts users of in-store discount offers as they walk into a mall that supports the application

Get in Under the Wire Even if you are a last minute shopper or forget someone on your holiday list there are still great options available for purchase – Virtual gift cards can be purchased online and sent through – New federal laws mandate that gift cards can’t expire for at least 5 years

Resources Gerstner, Lisa. "What You Need to Know about Holiday Shopping." Kiplinger's Personal Finance (2010): 87. Print. M