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PSA: "Price Point"

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    PSA: "Price Point"

    Here is an overview of the economic term "price point":

    When a company is having a big sale, they are offering a product at a good "price" not "price point."

    End Rant.


    True -- price point is overused and misused often when discussing fashion. Once in a while, you do see it used somewhat appropriately...



      A company is intentionally or intuitively using price point theory to drive demand. Hence, a sale is used to increase demand and grow revenues that would (hopefully) off set the price cut.

      In retail, we see price skimming all the time. The folks with the money will pay full retail price, then others will be convinced to buy at sale prices while still other sales won't be made until the clearance pricing appears. If only one of these prices were used, money would be left on the table. Still more market share is gained by offering high-end shopping experiences with one brand and low-cost, lower-quality with another brand.



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