Never Give Discounts! (Pricing Strategy)

Discounts wreck your price integrity in consumers eyes as they start to lose respect/value for your prices over time. The negative effects impact you less if you:

  • have tons of products (and only discounting some),
  • regularly change your products (and discount “older” ones),
  • or you discount products during launch but increase them after launch.

This is why it works when big retailers with many products or often-changing products can discount….but absolutely horrible and not recommended for a company with few products that stay the same (like APPLE).

As for throwing in more and more bonuses, I don’t like that idea too much either but it can work and still retain your premium pricing if the added value is just enough to feel like added value but not so much that it feels like you’re throwing products away to get sales (desperation).

Discounting to increase sales might work the first couple times but soon afterwards customers stop buying (losing respect for regular prices) and just wait for the next sale. If you’re gonna promote, promote features and value, not discounts!

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