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TERM
Price Decrease
A reduction in selling price.
Definition
Price decrease is a drop in selling price versus the prior period or base price.
How to Calculate
Subtract new price from old price or from base price.
Why it Matters
Can drive trial and volume.
Key Advantages
Improves price perception.
Example
From $4.99 to $4.49 mid-quarter.
Use it to
Read the downward adjustment from regular price to evaluate deal intensity. Compare decreases across banners to ensure consistency and maintain desired price position.
