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High-low pricing strategies generally result in lower variable costs, since promotional retailers can sell more products by offering discounts. They are able to take advantage of surplus at the wholesale level and also eliminate excess inventory at the retail level. This is particularly useful in markets for perishable goods, such as groceries. [3]
In 1969, Bic launched its advertising campaign in the United States. A year later, the four-color Bic was launched. The four-color pen allowed one to change the ink color without changing the pen. [13] Bic's ability to mass produce the manufacturing of their pens resulted in low prices. [14] The Conté company was acquired by BIC in 1979. [15]
The first known promotional products in the United States were commemorative buttons dating back to the election of George Washington in 1789. During the early 19th century, there were some advertising calendars, rulers, and wooden specialties, but there was no organized industry for the creation and distribution of promotional items until later in the 19th century.
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High–low pricing (or hi–low pricing) is a type of pricing strategy adopted by companies, usually small and medium-sized retail firms, where a firm initially charges a high price for a product and later, when it has become less desirable, sells it at a discount or through clearance sales.
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