What pricing type is often utilized as a tactic to quickly sell off excess stock?

Promotional pricing is commonly used by businesses to effectively manage surplus inventory by temporarily reducing prices. This tactic not only encourages customers to make a purchase by highlighting a favorable deal but also helps businesses clear excess stock that may be taking up storage space, thus improving cash flow and making room for new products. This strategy can create a sense of urgency, motivating consumers to buy before the promotional period ends, which can significantly boost sales volume in a short time frame.

In contrast, price skimming involves setting high prices initially and gradually lowering them, targeting different market segments over time. This approach aims to maximize profit margins from early adopters before attracting broader consumers, making it less effective for quickly selling off excess stock. A loss leader strategy involves selling a product at a price below its market cost to attract customers, often with the expectation that they will purchase additional items at higher margins. While this tactic can drive traffic and enhance overall sales, it typically focuses more on increasing footfall rather than directly addressing excess inventory. Branding, on the other hand, is concerned with building a company's identity and loyalty rather than pricing strategies aimed at clearing stock.