I think discounts are one of the easiest way to attract the wrong customers

★★ signal-medium r/smallbusiness · ↑ 73 · 💬 42 · 2026-04-03 · kw: buy box price · open on reddit ↗

Tool

none

Issue

Discounting strategy attracts price-sensitive customers who don't return; one business lost $2,300 running a 25% off promo that brought 47 new customers with zero repeat purchases, while existing customers begin waiting for sales instead of paying full price.

Cost

$2,300

Recommendation

Build discounts into core brand strategy (value positioning) rather than reactive tactic; segment customer base and measure discount effectiveness; compete on quality/value proposition instead of price alone; none

extracted with

anthropic/claude-haiku-4.5 · 2026-05-08

Body

The more I think about about it, the more I believe discounts usually do more harm than good for many small businesses. I mean, I get why people use them. When sales feel slow, offering a discount feels like the fastest way to get more attention and lower customer resistance. It's simple logic. On paper, it seems like a good way to bring in more customers. But I think a lot of the time, it just brings in people who were never a great fit for your business to begin with. In my experience, the customers who respond most strongly to discounts are often the most price sensitive ones and the least likely to stay loyal once someone cheaper shows up. And once you start leaning on discounts too much, it gets harder to sell at your normal price without making people feel like they should wait for the next round of discounts. I'm not saying they never work, but I do think a lot of owners use them *way* too quickly instead of fixing real issues first, whether that's bad positioning, weak marketing, slow follow-ups, or just not giving people a strong enough reason to buy in the first place. It sound like I'm totally against discounts here, but I guess what I really want to know is, for those of you who use discounts *regularly*, where do you actually fit them into your strategy? And if you use them consistently, how do you use them without conditioning people to just wait for the next sale?

Top comments (10)

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[score=19] FaisalHourani

It depends on whether the discount is a strategy or a reaction. If your brand is built around value — outlet stores, flash sale sites, seasonal clearance — discounts are the product. Customers come for that. It works well. Where it breaks is when you reach for a discount to patch a slow week. That trains customers to wait. It signals the original price was arbitrary. And it builds a base that will never pay full price again. The brands that struggle with this are usually ones that have not decided whether they compete on value or on something else. The discount just exposes that ambiguity.

[score=9] fredSanford6

When I was a teenager I worked at a shop that was some what higher end and I definitely agree. The other shops in the same group of shops worked in different areas that where not as nice as an area so we followed their coupons and deals as well. The 12 dollar oil change season was absolutely terrible for the customers that came in.

[score=11] [deleted]

[removed]

[score=4] killing_time_at_work

Same reason Groupons and similar are not a great idea. You're not attracting future customers. You're only attracting bargain hunters that you'll never see again.

[score=6] TacosAreJustice

It depends on what market you are in… If you are competing on price, I think discounts sets bad expectations for your customers… But if you are competing on quality, discounts are a good way to show the value of your brand. I’m much more likely to spend $250 on sheets I like even if I bought them on sale previously because I love the sheets so they are worth it for me.

[score=3] tobebuilds

Most businesses use discounts without any strategy beyond getting more sales. No thought put into frequency, segmentation, measurement, or product selection. It's not going to work well that way... Discounts are a single tool in your toolbox, not a substitute for value.

[score=3] Dimon19900

Lost $2,300 in March running a 25% off promo that brought in 47 new customers who never ordered again. But here's what nobody talks about - your best customers see those discounts and start waiting for sales instead of paying full price.

[score=6] Is-Potato425

If you do discounts your “sale” price needs to be what you actually need to sell it for and the “regular “ price is just nice profit. That’s how corporate runs sales….

[score=2] Fit-Original1314

Oh yeah, let’s just give everyone a discount forever, that’ll work.