A very common marketing tactic is to charge less to new customers in order to attract them to start using the company's service or products. For example, storage facilities rely on this to get customer’s business when they offer to rent space for the first month for $1. This works in this industry because it is a lot easier to move things into storage then to actually move accumulated items out! But introductory offers are not always effective in increasing revenue and sometimes they can actually hurt the sales of the company.
Decide on whether to use this strategy by asking these three questions: