Bait pricing is a marketing technique in which a company offers a product or service at an artificially low price in order to lure customers into its sales funnel. Once the customer is interested, the company then raises the price of the product or service to a more profitable level. Bait pricing can be an effective way to generate leads and boost sales, but it can also backfire if customers feel misled or frustrated by the increased prices.
Some companies use bait pricing as a way to introduce new products or services. They offer the item at a low price for a limited time in order to generate interest and word-of-mouth marketing. Others use bait pricing as a way to increase sales during slow periods. By offering steep discounts, they attract customers who might not otherwise make a purchase.
Bait pricing can be a controversial marketing tactic. Some consumers view it as a form of deception, while others see it as a legitimate way to save money on desired products or services. Either way, it’s important for companies to be transparent about their pricing strategies and make sure that customers are aware of any potential price increases.