Closing the door on discounts

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Hey honeys and hustlers,

Discounts shouldn't be your default strategy for making sales. It seems to be the first thing companies consider when looking to boost sales, clear inventory, or attract new customers. But do you really want customers who only show up when there's a sale? I think it's time we reconsider our relationship with discounts and explore more sustainable alternatives.

A little note on today's ad sponsor: I met the co-founders of Contra at Epicurrence in the Outer Banks, hosted by Dann Petty. It feels full circle to have them sponsor the newsletter and play a small role in promoting what they’re building. If you’re a freelancer, I highly recommend checking out this platform and trying Indy Al.

The Discount Dilemma

When sales are sluggish, cash flow is slow, or customer acquisition costs rise, the immediate reaction for many businesses is to cut their prices. It's an easy button to push—one that promises quick results and an immediate dopamine hit of increased sales. But this short-term thinking often masks deeper issues and creates long-term problems.

In my previous article, I told you I used discounts to make weird of mouth referrals easier for current clients. And it worked, but after a while, my profit margin was too low to sustain that system. After a while, it can be easy to wonder if my sale prices are just my regular prices. And if people think they're my regular prices, it makes it that much harder for me to raise my rates. I had to figure out how to sell my services for full price, keep customers coming back, and get enthusiastic referrals or reviews when I delivered great images.

Rather than reaching for across-the-board price cuts, consider these more targeted approaches that preserve your brand value while still addressing customer hesitation to buy:

1. Conversion-Focused Incentives for New Customers

Instead of advertising discounts upfront, try implementing targeted offers for customers who demonstrate interest but hesitate to complete their purchase. What's a small extra you can include as a bonus or in the scope of work to make customers happy? For me, it was a 1-week preview for wedding photos. I would send 5-10 images 1 week after the wedding so that they don't wait an entire month for the full gallery. Yes, I was a slow photo editor back then. Now, I can do same day turnaround if needed, but 4-6 weeks for a full wedding gallery was the industry standard. For portrait sessions, I would give clients 5 free prints with their digital files. Sometimes they were Polaroid prints, a crowd favorite, sometimes they were regular 4x6 prints.

If you're a product based business, you could try including free samples of a product, or stickers and pins with purchase. If you're a content creator working with brands, you could offer one extra social post that previews the collaboration and builds anticipation from your audience. Whatever it is, it doesn't have to be huge and costly, just meaningful.

2. Rewarding Loyalty Through Exclusivity

Your existing customers deserve special treatment, but that doesn't have to mean perpetual discounts. Consider offering them early access to new products, limited-edition items, or an extra service item (i.e.1 extra location for a portrait session).

This gives customers and clients the privilege of membership. It creates a sense of insider status that can be more valuable than the actual discount itself. As a creator, people trust your expertise on what would be cool to capture or create. Suggesting a unique location, including a

3. Value-Adding Alternatives

Before reaching for the price reduction lever, explore other incentives that might have a lower cost impact on your business like free shipping thresholds that encourage larger spend or bundled offerings that increase average order value while providing perceived savings. These can often achieve the same psychological effect as a discount while preserving your price integrity and potentially increasing overall transaction value.

Addressing the Root Causes

The most important step in moving away from discount dependency is diagnosing why customers aren't converting or returning in the first place. Discounts often mask underlying problems rather than solving them. If customers aren't coming back, consider why. Are there:

• Product quality issues that no discount can truly overcome

• Customer service gaps that leave people feeling undervalued

• Cumbersome checkout processes that create friction

• Post-purchase experiences that don't meet expectations

• Messaging that attracts price-sensitive customers rather than value-appreciative ones

Transitioning away from heavy discounting requires careful planning. As you reduce reliance on discounts, double down on articulating your unique value proposition. Help customers understand what makes your offering worth the price through your content, media, and web copy like enhanced product descriptions, customer testimonials, and comparison guides. When you successfully transition to value-based selling rather than price-based competition, you create space for:

• Higher profit margins that can be reinvested in product and service improvement (read = don't invest it all into camera gear pls!)

• Customer relationships based on value rather than transactions

• Brand perception centered on quality and experience

• More predictable revenue patterns not dependent on promotional spikes

Discounts aren't inherently bad—they're simply overused and often misapplied. The most successful businesses understand that price is just one component of value. By focusing on creating exceptional experiences, solving real problems, and building meaningful connections with customers, you can escape the discount treadmill and build a more sustainable business.

I'm rooting for you. (Please excuse any typos, I am publishing this from my tablet in a coffee shop while in the PNW).