Pricing & Discounting

What is pricing and discounting?

Pricing sets the base value of products, while discounting temporarily adjusts that price to drive demand or clear inventory.

Both affect customer expectations and purchasing behavior.

Why pricing and discounting matter for small brands

Pricing decisions directly impact margins, positioning, and trust. Overuse of discounts can train customers to wait, while unclear pricing can reduce confidence.

When you should care (and when you shouldn’t)

Pricing and discounting matter when:

• Conversion is sensitive to price

• Inventory needs to be managed

• Brand perception is still forming

Early experimentation is common, but consistency becomes important as brands mature.

How pricing and discounting are typically handled

Brands often test pricing early, then introduce structured discounting tied to events or lifecycle moments. The goal is alignment between value and price.

Common mistakes or misconceptions

• Relying on discounts as a growth strategy

• Frequent, inconsistent promotions

• Ignoring long-term margin impact

FAQs

Do discounts always increase sales?
They can boost short-term volume, but they don’t always improve long-term growth.

Can discounting hurt a brand?
Yes. Overuse can erode perceived value and customer trust.

When should brands discount?
Discounts are most effective when tied to clear objectives like inventory management or customer reactivation.