Cost Effective? Part 2 of 3

In the second installment of this three-part series on how catalogers’ pricing strategies are evolving in response to the Web’s effect on branded products, this week I’ll provide options on how to increase sales without cutting prices across all merchandise.

(For part 1, click here.)

Catalogers often mistakenly assume that cutting prices will increase sales enough to deliver additional profit. Sales can go up, but profits can go down. Even worse, sometimes cutting prices yields no increase in sales; then profits really decline.