Sale pricing The question Why do supermarkets offer sales several times a year instead of all-year-round cheaper prices Explanation 1 As an effective way of self-targeting Using high price to exploit loyal (or lazy) customers, and low price to attract bargain hunters Unpredictability makes it harder for customers to decide where to go shopping cheaply Explanation 2. When two supermarkets compete, they vary their special offers to take advantage of those customers who do not bother to go to both stores Summary Companies find it more profitable to increase prices by a larger amount on an unpredictable basis Customers find it troublesome to avoid unpredictable price increases but easy to avoid predictable onesSale pricing The question Why do supermarkets offer sales several times a year instead of all-year-round cheaper prices? Explanation 1 As an effective way of self-targeting:  Using high price to exploit loyal (or lazy) customers, and low price to attract bargain hunters.  Unpredictability makes it harder for customers to decide where to go shopping cheaply. Explanation 2  When two supermarkets compete, they vary their special offers to take advantage of those customers who do not bother to go to both stores. Summary  Companies find it more profitable to increase prices by a larger amount on an unpredictable basis.  Customers find it troublesome to avoid unpredictable price increases but easy to avoid predictable ones