Hey!
Got a great question from someone on IG this week that I wanted to share with all of you:
Q: “Mike, I’m struggling with pricing. Do you think running regular discounts helps or hurts my brand long-term?”
A: The truth is, discounts are like sugar. They give you a quick high but can be destructive over time.
I learned this firsthand a couple years ago when I worked with a security company owner in Toronto. His entire business model was built on aggressive sales tactics and constant promotions. He made money, sure. But his customers only showed up when things were on sale.
Here’s what marketing experts Al Ries and Jack Trout discovered: “Sales (discounts) decrease business in the long term by educating customers not to buy at ‘regular’ prices.”
Think about that for a second.
Every time you discount, you’re training your audience to:
Wait for your next sale
Value your work less
See you as just another commodity
The strongest brands aren’t built during promotional periods. They’re built in the spaces between sales, through the value you provide when you’re not asking for anything in return.
This doesn’t mean never offer special pricing. But it does mean being strategic about it.
At my agency, we follow these simple rules:
• Schedule limited promotional windows (never random or constant)
• Maintain clear value-to-promotion ratios (aim for 80% value, 20% promotion)
• Focus promotions on new products or specific occasions
The entrepreneurs who build lasting, profitable brands understand this fundamental truth: Your brand is what you say when you’re not asking for money.
So ask yourself: If you stopped discounting tomorrow, would people still value what you offer?
Your answer reveals everything about the strength of your brand.
What branding or marketing questions are you wrestling with? Hit reply and let me know - I read everything personally.
Good read? Coffee donations appreciated :)
Until next week,
Mike.
PS: I know this is a relatively short email but I haven’t written any longer ones in the last couple weeks. But I’ll be back with a deep dive again this Saturday. Happy new week and happy first week of summer!