Same Product, Same Store, Different Prices = More Sales

How a retailer offers identical products at very different prices, just feet away from each other inside the same store, to efficiently allow customers to segregate themselves and increase sales.

Same Product, Same Store, Different Prices = More Sales

A new example just added to the resources section shows an interesting real world example of a retailer offering identical products at different prices... just feet away from each other at the same store.

The retailer is a large electronics/entertainment store and the product is digital movies (DVDs and Blu-Ray discs). They often offer the same version of a movie on a well organized, easy-to-navigate, alphabetized rack, and again in a chaotic, unorganized discount bin. One is presumably targeted at the customer who is looking for a specific movie, the other targeting the impulse buyer who might make a purchase when they have finished their shopping or are waiting to check out.

Which presentation targets which customer? And which one is likely to pay more? It is a very interesting way of letting customers segregate themselves according to how they value the product, thereby increasing sales without cannibalizing sales at the higher price.

Differential Pricing Price Discrimination Product Differentiation