12/22/2021

How Discount Pricing Strategies Hurt Your Business

This strategy has sweeping implications

We’ve worked with all kinds of companies here at Price Intelligently, from software to retail and consumer to enterprise. Yet, throughout all of our conversations, one of the biggest themes we see is that at every company there’s always that one person who thinks discounting and promotions are the answers to all of their pricing problems. For some reason, the target customer just needs 10% off to finally pay up.

Fortunately, since there’s one of these individuals at every company we work with, I’ve got my response down pretty well:

“Blindly discounting is one of the worst things you can do, because you’re conditioning your customer into de-valuing your product, and you’re literally throwing money away by putting it back on the table from the initial and future sales with that customer”

Don’t believe us? Don’t worry. We’ve got data to back all this up. Let’s explore this concept a bit more by first looking at the fundamentals of a discount pricing strategy and why it doesn't properly translate to software. We'll then reveal hard evidence into the true impact of a discount price on your bottom line, before finally illuminating solutions to get you on the right track to boosting your value and defending premium pricing. 

Please select this link to read the complete article from Price Intelligently.