Price-based selling

The goal of price based selling is to capture the business of price sensitive sellers.[6] Customers who shop purely based on product cost will have the most interest in bargain buys. Pricing is directly related to the revenue management department of a business, and any good revenue manager will make sure they are doing everything possible to maximize profits.

Price-matching guarantees are commonly used in consumer and industrial markets.[7] Lowe's Home Improvement Warehouse is a great example, as they frequently state that they are the 'lowest' price store, and they will match the competitors. Best Buy has always been known for their price-matching guarantee as well. While a store with price matching guarantees has no fear of losing customers to rivals' price cuts, it has every incentive to raise its own price to charge a higher price to its loyal customers. It is an anti-competitive tactic that warns competitors not to attempt to steal market share by undercutting prices.

Price-match guarantees are also criticized as being misleading to consumers.[8] The guarantees typically require shoppers to provide proof of a lower advertised price on an identical item in stock at a nearby competitor's store before a price match will be approved. However, many big-box retailers work directly with manufacturers and sell products with unique model numbers. As a result, the retailer can deny a price-match request, as no other store carries an "identical" item. Other common reasons for denial: the competitor is not "local," the ad lists a percent discount rather than a specific price, or the customer doesn't offer acceptable proof of the competitor's price.[9] Even if all criteria are met, retailers grant price-matching requests on a case-by-case basis at the discretion of store employees.

Price cutting, or undercutting, is a sales technique that reduces the retail prices to a level low enough to eliminate competition.[10] Businesses will implement this as a way to under-cut the competition and offer the best price to the consumer.

Discounting is something seen in almost every retail store, and grocery store. Discounting is present in just about every business in some way, whether it be coupons, advanced purchases, or bulk buying, businesses are quick to offer a pricing discount. Coupons and promotions give an economic incentive for the customer to use when purchasing a brand.[11] The effect on consumer redemption of coupons has mostly been positive as it attracts customers, and gives them interest in a particular brand.[12] On the other hand, discounting can really hurt a business as seen with Nordstrom this past holiday season. The clothing retailer reported that their fourth quarter earnings fell 68%, in large part due to the heavy discounting.[13] According to a Cornell University study, in the hotel business, discounting in attempt to gain more occupancy does more harm than good, lowering the RevPAR and creating less profit.[14]

Haggling, otherwise known as bargaining, is most present in businesses where items have no fixed price. Sellers will often price the item higher than they want to sell it, knowing that buyers are going to want to negotiate the price. The act of haggling has been around since ancient times and continues to this day. It is a common practice in real estate negotiations, car purchases, and at informal flea markets—while it is rarely used in retail settings such as at supermarkets, pharmacies, or brand-name clothing stores.

There are a select group of products that should be sold based primarily upon their price and this includes all: consumables that have very little direct impact upon the consumer.[15] Examples include items like: sand, gravel, and aggregate used in construction.[16]

With the advent of the Internet, price, service and support are often the only contact points with the customer. Identical products shipped across state lines with no tax have no other differentiators. Refusal to provide an upfront price is very hostile to Internet customers who will purchase a good or service elsewhere.