I do not offer discounts

Discounts are bad. Mostly. Here’s why.

First, discounts create a habit in your customers to delay the next purchase until the next promotion. It hurts your LTV (Customer Lifetime Value). Second, continuous discounts dilute your brand’s image and push it towards the lower end, making sales at the current price point even more difficult. It pushes the CAC (Customer Acquisition Cost) up ^[1].

Sometimes, you are expected to give discounts. During Black Friday/Cyber Monday, it is expected, however, is not necessarily required^[2]. Give monetary discounts only when you have to (e.g., usually you cannot participate in Amazon Prime Day promotions without giving at least a 20% discount from your lowest non-promo price for the past 30 days).

Instead of a plain dollar discount, consider offering discounted bundles so you also increase AOV (Average Order Value)^[3]. Alternatively, you can give away something that can convert to an upsell in the future: for example, a limited period when your user gets a higher tier subscription for the price of their current tier — it can lead some users to convert to the higher tier once the promotion ends^[4].

However, the most important question is why the discount may still be tempting in certain cases.

Your customers are willing to pay for your product if your product solves their problem. If a discount is the only way to convince them to make a purchase, it generally means that your product either does not deliver enough value, or your marketing message cannot explain the value clearly enough.

So instead of giving discounts, fix your product or how you market it. Habitual discounts are the tax on a weak operational model.

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