Update Valentine’s Day Pricing Plans

Are any special Valentine’s Day items in place in your store, and do you know which of your regular products and services you’ll feature—and customize as necessary—to magically transform them into targeted missives of love? Great.
     But I wouldn’t be surprised if you’re still undecided how you’ll set prices on those items for the last week or so before Valentine’s Day. The difficulty comes about because of trend crosscurrents.

• Cut the prices to build sales among those ambivalent about spending money on Valentine’s Day gifts: Researchers at University of Nevada-Las Vegas and University of Georgia-Athens documented a trend for couples in long-term relationships to come to resent the pressure to buy gifts. Some of the research participants were irritated even at the expectation they’d buy greeting cards. “Valentine’s Day is a great marketing scam by the greeting card people,” said one. Moreover, the research found evidence that retailers who hype Valentine’s Day purchases risk alienating some consumers in ways that would last well beyond February.
• Raise prices the week before Valentine’s Day because price sensitivity is likely to decrease. Research findings from Stanford University, University of California-Berkeley, and University of Chicago suggest that when a gift is expected, the giver who waits until the last minute gets increasingly interested in avoiding pain. The result is that they’re willing to pay more for a gift and often more willing to upgrade to a fancier gift. The UNLV and University of Georgia researchers might agree this is true for younger lovers, even if not for those in long-term relationships.
• Keep prices steady. This might be the best alternative, but monitor your sales and customer reactions so you can make last-minute adjustments this year or at least get some baseline information to help in next year’s pricing plans.