Giordano - Is this business sense?

One of the old fogeys posed this question to me recently:

Giordano doesn't make sense. When it's raining, they should jack up the price of their umbrellas. Instead, they half it!

It set me thinking. Then I looked at the collection of Giordano umbrellas in my store. (At least 5 of them). Then I understood..and this is what I told the old fogey.

You see, they are buying goodwill with that half-price. Had they charged me double the usual price, I would probably have grudgingly bought the umbrella that first time in my hour of need, vowed never to be caught again, and zealously carry an umbrella everywhere I go.
Net revenue for Giordano - $24

But with this goodwill, I let my guard down. At the back of my mind, whenever I'm out, I'm like "Giordano's umbrellas go for half-price. And they are everywhere. If I'm caught, I can always get one since it's only half-price." I've even begun to hunt out Giordano's whenever it rains, because "their umbrellas go for half-price".
Net revenue for Giordano - 5 X $6 = $30 and still counting

That's why I have 5 Giordano umbrellas now. I'm sure I won't stop at 5. And that's why I think Giordano's makes sense.

Moral of the story : Goodwill makes good sustainable economic sense.