Why Do People Like Price Promotions?

"It's a bargain. It was on sale. It was half price."

Something is only worth what someone else will pay for it.  Unless you are in the business of reselling stuff you bought a low price then why bother about the promotion?

If the price is important then there are always alternatives that are cheaper in almost every market.  The designer top that is a bargain because it is half price, is still about 2500% more that it cost to make.  Is it really a bargain?

And if you are a brand owner or retailer, why not sell out at full price?  

Fix your product.  Fix your service.  Customers should be happy to pay more for a scant supply of something valuable to them.

Unless you are a commodity.  Then the best thing you can do is realise you are a commodity and structure and price yourself accordingly.  The problem with a race to the bottom though, as Seth would say, is that you might win.