Remember the kid who learned he could get candy by throwing tantrums? That’s essentially what brands do to their customers through constant discounting. Once you train people to wait for sales, full-price becomes a distant memory.
The math seems simple at first: slash prices, boost sales, profit. But like most quick fixes, discounting is retail’s equivalent of empty calories – temporarily satisfying but ultimately harmful.
The real cost isn’t just the reduced margins. It’s the psychological rewiring of your customer base. When “luxury” brands saturate outlet stores with discounted products, their main-line customers flee fast. The message is clear: either the original prices were inflated, or the brand wasn’t as exclusive as claimed. Neither conclusion helps build long-term value.
