Bye Bye Sales! 6 Reasons Discounting is a No-Go (And What to Try Instead)

23 October 2023

Persuasion Techniques

Have you ever noticed how everything seems to be on sale these days? Everyone offers discounts left and right, from clothes to electronics to food.

But is discounting always the best strategy for your business? We don’t think so! So, today we’re going to give you some insight into why discounting can actually hurt your business in the long run.

Before we dive in, let’s get one thing straight: discounting is not just a B2C issue. B2B companies are just as guilty of this pricing tactic. So, whether you’re a B2B or B2C company, you need to know why discounting is bad news.

So, why do companies offer discounts? It’s an easy way to attract new customers and make sales. But discounting can have serious consequences. Let’s take a look at six reasons why you should never discount your products or services.

1. Lack of Confidence
When you offer a discount, you’re basically saying that you don’t believe enough in your product to sell it at full price. This lack of confidence can be a major turn-off for potential customers. After all, if you don’t have faith in your own product, why should they?

2. Bad Precedent
Offering a discount once can set a bad precedent for your business. Customers may expect the same discounted price every time they buy from you. Not only does this create an expectation for discounts, but it also makes your product seem less valuable. 

3. Lower Perceived Value
People tend to associate higher prices with higher quality. If you offer a discount, you may suggest that your product or service is lower quality. This can lead to customers perceiving your product as less valuable, even if it’s not true. 

4. Untrustworthiness
Offering a discount at the last minute when things start to go south during a sales pitch can make you seem untrustworthy. Customers may start to wonder why you didn’t offer that price in the first place, which can damage your relationship with them.

5. Loss of Profit
Discounting may help you make a sale in the short term, but it can hurt your profits in the long run. You may end up selling more products or services at a lower price, which can impact your bottom line.

6. Brand Image
Finally, discounting can also damage your brand image. If you’re constantly offering discounts, it can make your brand seem less exclusive and less valuable. Customers may question why they should pay full price if they can always wait for a discount.

So, what can you do instead of discounting? You could focus on providing more value to your customers through things like excellent customer service, free trials, or other perks. By doing this, you can create a positive customer experience that will keep customers coming back, without relying on discounts to make sales. 

In conclusion, while discounts seem like a quick fix for boosting sales, they can actually cause more harm than good. So, be confident in your product, set a good precedent, and focus on providing value to your customers. You’ll thank us later!

Siobhan Mulvahil

Meet Siobhan

I have worked in marketing for over 20 years and have been a freelance consultant for almost 15 years. I have a BA in Media, Graduate Certificate in Business, Certificate in Digital Marketing, and I am a Certified Marketer with the Australian Marketing Institute (AMI).

I launched my first marketing agency long before the onset of digital marketing. Facebook was only for personal use, and internet was painfully slow.

Some things that haven’t changed with marketing:

  • Establishing your marketing foundations and research how your business needs to be marketed.
  • Consistency across all customer touchpoints.
  • A holistic marketing strategy that focuses on supporting your sales pipeline!

Although marketing is my first love, coffee definitely comes a close second.