Sales and Bargins

Obviously, offering sales and special bargain pricing can be an effective marketing tools. They are used all the time. But there are still some things to know if you go that route.

One of the primary regulatory mandates is that when you promote a sale or bargain, it has to be truthful and honest.¹ As with many different marketing strategies, there have been unscrupulous folks trying to take advantage by using deceptive pricing. As a result, there are regulations in place to protect consumers.

Deceptive pricing is essentially tricking the consumer into thinking they got a great deal when they really didn’t. If you’ve ever experienced it (and found out about it) you know first hand why it’s NOT a good idea.

Deceptive pricing can take many forms, all of which should be avoided. Here are some of the more common ways deceptive pricing might happen.

Former Price Comparisons

One way to promote a sale is to compare the price now with the price the product used to be. It’s a very common type of sale, and perfectly legitimate to compare prices—so long as the former price is real.

Example sale sale sign with reduced price.

Of course, if the product was never sold at that price, or if it was sold very briefly at that price in order to make the “sale” look legit, then it is deceptive pricing.

Bargains with Purchase

Offering an incentive with purchase is a another type of special pricing. It can also take many forms.

Bargain with purchase.

If you make this type of offer, clearly spell out all the terms and conditions e.g., “Half-off lowest priced item.” Failing to do so would be deceptive pricing.

It would also be deceptive to raise the price of the primary item(s) to cover the cost of the freebie, to decrease the quality, or otherwise attach undisclosed strings to the offer.

Retail Price Comparisons

Another type of bargain pricing is to compare your price with that of others who are selling the same product.

Example sale sign for retail price comparison.

Again, this can be a legitimate marketing approach, so long as it is truthful; the price of the product sold by other retailers must actually BE higher. And, of course, it needs to be for the same or a very similar product. Aside from the regulatory requirements, you might also want to consider your relationship with other vendors or retailers before using this marketing strategy.