Discount Pricing

Article archives from the Pricing Pricing Society

How to Offer Discounts While Maintaining Margin Control?

How can businesses offer discounts while maintaining margin control? The idea is to offer discounts to the public while effectively controlling those discounts based on margin calculations conducted by your team. In this article, the author presents a model for a tool to calculate the maximum sales discount feasible while still maintaining a minimum expected margin.

By |2023-07-31T13:04:00+00:00July 31, 2023|Discount Pricing, Pricing Articles|0 Comments

Discounting with Discipline: How to Make Sure Your Discount Program Succeeds

Companies facing falling demand—for individual products or across portfolios—typically think about increasing discounts and promotions to reinvigorate sales. This is a natural reaction, especially in an economic downturn, like the one unfolding in 2020. But when discount programs are not carefully crafted, the intended sales lift does not occur. In this paper, we outline six key considerations for sales and marketing executives and C-suite leaders when planning and executing discounts. With these considerations in mind, companies can respond to the current demand challenge, while minimizing the risk of unintended consequences.

What B2B Companies Get Wrong About Volume Discounts

Who knew that volume discounts can be so profitable? 7-Eleven’s Big Gulp strategy increased its fountain drinks by close to 100% and now Big Gulps represent close to 10% of income at some locations. One of the most misused tactics in pricing is volume discounting. In this article, the author provides tips on how to improve your volume discounting strategy.

By |2022-04-11T15:36:42+00:00December 31, 2020|Discount Pricing|0 Comments

What have discounts done for us?

In this article, the author examines the pros and cons of discounting strategies and special pricing promotions, including offering insights and best practices for how frequently to use discounts and ways to design them profitably, using humorous parallels from the classic film Monty Python’s Life of Brian to drive home his points in a memorable way.

By |2023-10-21T19:37:33+00:00January 31, 2018|Discount Pricing, Pricing Articles|0 Comments

Are You Really Getting a Discount, or Is It Just a Pricing Trick?

The media has recently been scrutinizing “misleading retail reference prices,” or the practice of promoting prices as “sales” or “ discounts” when the list prices are actually inflated above suggested retail prices. In this article, the author explores common retail pricing strategies used and the potential ramifications of price misinformation.

Go to Top