How to Boost Profitability Through Real-Time Pricing Insights This Black Friday

One of the biggest shopping days of the year is around the corner: Black Friday. Last year, consumers around the world spent $74.4 billion USD during the day-long shopping frenzy. That’s a big chunk of revenue to tap into — or miss out on. Optimizing pricing is a critical part of ensuring key moments in the retail calendar are a success. And that means treating pricing as a live strategy, not a one-time decision.

With forward-thinking companies embracing dynamic models that unlock hidden revenue rather than relying on outdated historical data, static pricing should be a thing of the past.

Most executives assume higher prices mean fewer sales, but reality is more complex. Retail teams must explore, for instance, the concepts of "price plateaus" and "price walls" — moments at which demand levels out or drops off a cliff — and they must use this knowledge to bolster the bottom line. I’ve seen slight price adjustments drive double-digit profit gains, illustrating that accurate pricing intelligence isn't just a nice-to-have.

Marketers use a huge variety of tools for targeting and measurement, but many need to reconnect with this critical “forgotten P” of the marketing mix.

It’s Not Just About Discounts

Black Friday is more than just a day, it’s a high-stakes moment that can make or break your year. And the key to winning? Smart pricing strategies.

There's both art and science in pricing. It’s not just about discounting, it’s about strategic alignment with business goals. Whether you're aiming to maximize revenue, acquire new customers, or clear out excess inventory, pricing plays a central role.

That doesn’t mean offering the steepest markdowns. Instead, it means setting prices that align with demand and revenue potential through forward planning, innovation and creativity.

From crafting irresistible first-purchase deals to implementing post-event retention tactics, pricing can also support a broader approach to customer acquisition. It can help clear inventory if needed, spark buzz, and keep your brand top-of-mind long after the event ends.

One of the most common missteps during Black Friday is pricing products too high or too low. Without measuring "willingness to pay," brands risk leaving revenue on the table or deterring buyers altogether. You may be undercharging for high-demand products or overestimating what consumers are willing to pay for others.

Tap Into Pricing Psychology

Pricing also has some key psychological aspects. We’ve known for years that our brains perceive prices unconsciously, often focusing on the leftmost digits. This means that a product priced at $9.99 feels significantly cheaper than one priced at $10. Shoppers are on the lookout for savings, and even a one-cent difference can create the illusion of a deal too good to miss.

This psychological sensitivity doesn’t end with numbers. Tactics like scarcity and urgency also tap into consumer instincts. Advertising limited quantities, offering exclusive bundles, or introducing special Black Friday–only editions can spark a fear of missing out. Layer on short time windows or “only today” messages and you create an environment that encourages faster decision-making.

The most effective strategies use both elements: numbers that feel lower and offers that feel like they’re disappearing fast. While it’s not always necessary to apply these techniques to every product, using them on select items, especially when they’re featured prominently, can make a meaningful difference. Online or in-store, these cues help products stand out during peak promotional periods.

Anchor High to Show Value

Price anchoring is another cognitive bias that influences the way we perceive price. By setting a high initial anchor price, you make a subsequent lower price seem like a bargain. On Black Friday, when shoppers are actively scanning for deals, anchoring can be especially impactful. Reinforce this effect with compelling language such as, “Get this premium service for just a fraction of the regular price.”

Major promotional events thrive on urgency and time-sensitive offers. Let customers know deals won’t last long, and consider offering two or more versions of your product or service at different price points. The highest-priced option helps position the others as better value, helping your offer stand out when consumers are bombarded with deals and discounts.

Learn and Refine for Next Time

Once the event itself is over, the resulting insights are likely to be valuable, too. Post-sale analysis can help to fine-tune future pricing strategies. Consider how customers responded. Did they react favorably to urgency tactics? And how did your competitors fare during Black Friday? Analyzing their strategies can provide valuable learnings. Other metrics to monitor include conversion rate, average order value, customer retention, and feedback or reviews.

After all, post-Black Friday analysis isn't just about reviewing past performance; it's about equipping yourself for future success. By carefully assessing the results of your pricing strategies, you'll be better prepared for other events that come your way.

Ian Wikström services as CCO and CRO of Priceagent, a self-serve pricing platform that helps SMEs and global enterprises confidently set prices.