When considering the lifetime value of one’s business, promotions make financial sense. In order to acquire a loyal customer who may make later purchases that will produce a high margin, it is worth incurring the cost, meaning lower margin. Just to mention some examples, credit card interest, the automobile servicing, e-book purchase vs. e-reader deices, replacement parts and blades for razors. One has to estimate the cost and the gains in order to do the math. Those who would have eventually purchased an item anyway at the regular price, and promotion publicity costs, are included in lost margin of the cost. The margin on the promotion sale form those who would not have bought from us, and the margin form all their following buys for as long as they continue to buy from us, are included in the profit.According to a credit card company, it is eight years the average customer life. In order to obtain new clients where costs of the promotion is less than the entire margins they make from those new clients, this credit card company uses promotion pricing through the next seven years.As we have already learned, promotional pricings are incentives that are generally meant to bring in buyers, to turn over stock and to drive revenue and cash flow. Although some businesses frequently use promotional pricing as a system to keep continuing purchases from price sensitive shoppers, promotional pricings should mainly be used in a short time technique. This technique provides really great benefits when companies use it efficiently, while using to many sales promotions and discounts may cause a price orientation in buyers. Having well defined objective will assist you to know what sales promotion strategies would work better for your company and how they suit better the company’s marketing responsibilities like advertising.