The document discusses three pricing techniques used by retailers: leader pricing where certain items are priced lower to attract customers and boost complementary sales; price lining where retailers offer a limited number of predetermined price points within a category; and odd pricing where prices end in odd numbers like .99 cents to seem less than full dollar amounts. Examples are given of Walmart, Family Dollar, Sears, Sam's Club, and Best Buy using these techniques for movies, toys, DVDs, and other products.

1. Pricing Techniques

2. Leader Pricing
• A pricing strategy in which certain items
are priced lower then normal to increase
the traffic flow of customers or to increase
the sale of complementary products.

3. Stores Use Leader Pricing
• Wal-Mart – New Release movies for the
first week are only $14.99
• Most stores offer a Black Friday sale
where items they advertising are lose
leaders

4. Price Lining
• A pricing policy in which a retailer offers a
limited number of predetermined price
points with in a classification.

5. Store Use of Price Lining
• Wal-Mart – Have $5 DVD bin
• Family Dollar – Classifies toys by price
during the Christmas Season
• Sears – Also offer bins with products that
are all the same price

6. Odd Pricing
• The practice of ending prices with an odd
number (such as .69 cents) or just under a
round number (such as $98 instead of
$100).

7. Store Use of Odd Pricing
• Sam’s Club – Marks down their sales
items in increment of odd numbers
• Best Buy – Always ends their prices in .99

8. Thank You
Robin Renstrom
Lindy Johnson