Sometimes pricing trickles down from the most expensive item to the least expensive item in the product range. In this way the merchant can take a larger per-unit profit on the cheap end, thus enabling him to stock the slow moving, high ticket product.

EXAMPLE:

$100 fur sporran & $25 leather sporran.

Side-by-side the $100 sporran looks over priced when compared to the $25 sporran.("How much more can a scrap of rabbit fur cost?" the potential buyer asks himself.)

Now up the price of the leather sporran by $25. Suddenly the $100 fur sporran doesn't look so over priced when parked next to a $50 leather sporran. And by comparison the leather sporran now gives the impression of being better value for the money as well.

In small volume sales ratcheting up the price often has no effect on total units sold, although it may alter the demographic profile of your customer base.

Since it is unlikely that the market for sporrans is going to expand the only way a retailer can stay in business is to increase the price point to something approaching profitability.