Promotional pricing and why it makes us feel good
Untapped Pricing CEO, Jenny Millar, joined Breakfast Business on Newstalk radio to dive into the psychology behind Black Friday.
Discounts don’t just change the price. They change how we feel. The thrill of spotting a deal, the rush of a countdown clock, the fear of missing out when everyone else is grabbing a bargain… Black Friday turns shopping into a game. A great promotion delivers a bargain, a buzz and a bit of belonging.
But retailers need to tread carefully. Go too big every year, and customers wait for the sale. Discount the wrong products, and you sacrifice margin on items that would have sold anyway. And when offers become cluttered or confusing, people hesitate and that hesitation costs sales.
During Black Friday 2025, we’re seeing more targeted approaches:
- The big headline deals are still there to grab attention
- Bundles and multi-buys are being used to lift basket size without slashing margin across the board.
- Loyalty schemes are taking centre stage, turning Black Friday into more of a relationship-building moment.
- Value-adds like faster delivery or extended returns offer a nudge to buy without eroding long-term pricing power.
Promotions reshape what customers believe something is worth, so the real win is not the weekend spike, it’s maintaining willingness to pay when prices return to normal.
Episode summary
Promotional pricing and why it makes us feel good
Published by Breakfast Business with Joe Lynam ‧ 1 December 2025 ‧ Guest Jenny Millar
In this episode of Breakfast Business, Jenny Millar, CEO of Untapped Pricing, explores why promotional pricing is so effective — and why it feels good for customers.
From Cyber Monday discounts to limited-time offers, the conversation unpacks the psychology behind promotions, including how anchoring, urgency and perceived savings influence buying decisions far more than logic alone.
Jenny also shares why promotional pricing can become risky when it’s overused or poorly designed. While discounts can drive short-term demand, they can also erode value and train customers to wait for the next deal.
The key takeaway: promotional pricing works best when it’s intentional, evidence-led, and aligned with a clear pricing strategy, not used as a reflex when sales slow.
