Hinnanmittarista

Hinnanmittarista refers to a Finnish term used in economics for retailers who adjust the displayed prices of products to appear lower than the actual cost to attract customers. Typically, a discount is offered on the listed price, often without the corresponding reduction in costs. This marketing technique enables retailers to present the idea of offering a reduced price, increasing the perception that the product is cheaper, while maintaining the real cost.

The prices listed by hinnanmittarista are usually not the actual selling prices, but rather a starting point from which additional discounts or money-off promotions are often applied. This approach benefits the retailers by letting them appear as cost- effective and competitive in a marketplace where offering exclusive deals has become highly competitive.

Analysis of pricing practices by retailers suggests that hinnanmittarista is tied to maintaining profit margins despite discounting appearing on the outside. Retailers still set their prices based on a cost-plus model, which allows them to keep a specific profit margin for the items they are selling. By ensuring they cover the costs and desired profit margin, retailers maintain control of revenue and expenditures.

Use of hinnanmittarista events, for keeping existing customers is another effect of a retailer adopting this system. The practice allows for lower base prices to which additional retail offers are attached which the consumer will hopefully opt to purchase during the time the price appears to be the final one.