Ignore sales promotions, put your prices up and most customers probably don’t care…assuming they notice.
The “big four” of supermarkets, Asda, Tesco, Morrisons and Sainsbury’s, have increased the number of £1 promotional price tags 150% over the past year. This compared with a 6% increase in their general promotions, according to a report compiled on behalf of industry magazine the Grocer.
Source: BBC Magazine
The above article is an extract from an article about the rounding up of prices from 99p to £1. Do the maths: what might that equate to in increased annual profits? Simple and effective; this is a great example of pricing being used correctly in the marketing mix.