In marketing, there’s a simple psychological technique used to make something feel like a good deal. The way it works is by saying, “It was listed for this price, but now I’m selling it for this price.” We see this a lot with online retailers.
In fact, there’s some suspicion and even evidence that some online retailers use real-time pricing. For example, if you search for something and don’t buy it right away, the price might increase slightly the next time you look at it. The idea is that you’re already invested and more likely to pay for it.
Is This Honest or Dishonest?
Is that honest or dishonest? It’s questionable. It depends on how you look at it.
Take airline pricing as another example. Prices fluctuate all the time based on algorithms. Can they charge different prices at different times of the day? Technically, yes. And anyone who pays is, in a sense, agreeing that it’s worth that price. Still, it raises questions.
It makes you wonder whether the price shown and the price offered are truly an honest form of communication.
The “Expiring Deal” Strategy
Another tactic, common in many industries, involves setting a price with a limited-time offer, “This deal expires in a week.” But when that week passes, a new sale appears that’s almost exactly the same. Then when that expires, another similar sale follows. Sometimes the details change slightly, sometimes they don’t change at all.
Questions of Integrity in Pricing
Is this type of pricing honest? Is a company that uses these strategies an honest company?
Some people would say this is a minor issue, while others see it as a significant concern. When it comes to presenting a clear and genuine message in advertising, constantly manipulating prices can feel like a lack of integrity. Similarly, claiming a deal will expire only to replace it with nearly the same offer can also seem misleading.
Being a Savvy Consumer
For these reasons, it’s worth being more mindful as consumers. Pay attention to how companies price their products and whether their practices align with your values.
Each of us can decide for ourselves, but it’s wise to shop carefully and “vote with your dollars” for the kinds of companies you want to support.
Real Estate Brokers and Agents
When we think about marketing as real estate agents and brokers, we might want to dig into why real estate brokers statistically make more than agents do.