A pricing strategy where firms slowly increase a product’s price over time. This strategy is designed to incentivize consumers to buy now or risk (and regret) having to pay a higher price later. This pricing strategy works best in product categories where consumers frequently monitor the price so they can observe the upward trend. Hotels, airlines, and cruises often adopt a steadily decreasing discount pricing strategy. Abbreviated SDD.
Preorder bonuses or early bird discounts (think Black Friday “doorbusters”) are a slightly different take on the SDD strategy. In this case, firms publish the timing and details of future price increases.