Ted Yee of T&N Games in Burnaby, British Columbia (Canada) read Dan Yarrington's recent column regarding the effects and effectiveness of sales (see "Get In The Game--To Sale Or Not To Sale?") and had this to say.

I agree with pretty much every point in this article, especially the part with why we shouldn't offer sales.  This is particularly true when I go grocery shopping as I will see something one day for 30% off or more and will essentially only ever buy that item if it's around that price, otherwise I can just skip it.  Of course, groceries stores are cyclical and predictable in their pricing strategies so they tend to do this to themselves.  Sales, even deep discount sales are fine as long as you're not predictable in how you implement them.  Having a sale at the same time each year is sometimes unavoidable (Christmas, an anniversary, etc., etc.) but what you put on sale and how you discount is completely in your control.

I should also note that having sales too often can be very detrimental as your regulars will get used to it and adjust their spending habits accordingly.

In any case, while we do offer various sales throughout the year, I find that charging full price and offering extras is more effective.  When you give someone something for free, you're not devaluing the item.  You are giving them a gift.  Psychologically, if you give someone a gift priced at $5, they will value it at $5 and not zero.  The best part of this strategy is that you get all your cash flow out of the transaction while still making the customer happy.

The opinions expressed in this article are solely those of the writer, and do not necessarily reflect the views of the editorial staff of ICv2.com.