how price cuts shape brand perception

Discounts — a seemingly simple marketing tool. They boost sales, grab attention, and drive customers to take action. But as discounts become a daily part of our shopping experience, one question keeps coming up: are they truly sustainable in the long run?

Once upon a time, discounts were reserved for big moments — Black Friday, New Year sales, and seasonal clearances. Today, they're everywhere. From beauty products to pharmaceuticals, consumers are almost conditioned to expect them. Think about it: when was the last time you bought your favorite skincare product at full price?

This shift raises an important question: what happens when discounts evolve from being occasional promotions to a permanent strategy? What do brands gain — and what do they risk losing?

Let’s dive deeper.

the short-term wins of discounts

When used strategically — the right percentage, at the right time, for the right duration — discounts deliver powerful results:

1. Immediate sales boost

“Only for one week!” the ad screams. You weren’t planning to buy that blender, but now you’re thinking — “I’ll need it eventually.” Scarcity triggers urgency. The fear of missing out kicks in.

But here’s the catch: if your brand offers discounts every month, customers stop feeling the urgency. They'll wait for the next one instead of buying now.

2. Attracting new customers

Discounts can lure bargain-hunters, “sale addicts,” and deal-driven shoppers into trying your brand. In some cases, these new customers stick around and become loyal buyers.

But there’s a risk:

• If your competitor launches deeper discounts, will you match or lose customers?
• And what if they skip discounts altogether and win attention through better products, stronger branding, or superior experiences? In that case, discounts alone won’t save you.

3. Clearing unwanted inventory

For products being phased out, deep discounts make sense — it’s an efficient way to move stock.

But be careful: without proper communication, customers may start expecting similar markdowns on everything. This sets dangerous pricing expectations.

Discounts do drive sales, but the more your brand leans on them, the more problems you risk creating for yourself. Let’s explore why.

 

the hidden risks of discount-driven marketing

1. Weakening brand perception

The more you discount, the more you train customers to see your brand as “affordable” rather than “premium.”
If you aim to position yourself as exclusive or high-quality, frequent markdowns can be damaging.

Takeaway: Want to be seen as premium? Then price integrity matters.

2. Price-based loyalty (not emotional loyalty)

Discounts attract buyers — but they don’t create true fans.
Once the discount ends, many will switch back to the competitor they emotionally connect with.

Takeaway: Long-term loyalty isn’t built on price. It’s built on experiences, values, and emotions.

3. Endless price wars

When brands compete on price alone, they end up trapped in a race to the bottom. Profit margins shrink, differentiation disappears, and the brand risks becoming just another “option” in a crowded market.

Takeaway: Compete on value, not just price.

4. Discounts > products > brand

When discounts happen too often, customers begin to focus on the deal, not the product — and definitely not the brand. Over time, your value proposition weakens.

Takeaway: If price becomes your only hook, your brand becomes secondary.

5. Questioning brand integrity

If customers regularly see “50% OFF” sales, they start wondering: “How overpriced was this to begin with?”
Excessive markdowns erode trust, which is far harder to rebuild than margins.

a smarter approach: strategic discounts that build, not break, brands

Discounts aren’t the enemy — but they shouldn’t be the core of your marketing strategy either. When combined with other elements, they can be a powerful tool. Here’s how:

1. Personalize discounts

A few months ago, PSP (a Georgian pharmacy chain) sent me a text:

“Mariam, as a fan of curly hair care products, here’s an exclusive discount just for you.”

It listed products I actually use — and yes, I bought them. Not because I needed them at that moment, but because the offer felt tailored to me.

Formula for success:

Discounts + Personalization = Increased Conversion + Stronger Loyalty

2. Invest in loyalty programs

Exclusive offers, VIP experiences, early access — these create emotional stickiness.
When customers feel special, they stay — with or without discounts.

But remember: personalization matters here too. Offering blood-pressure medication to a 22-year-old? That’s not personalization — that’s bad data usage.

3. Lead with brand value

Strong brands don’t rely on discounts to sell. They invest in quality, unique experiences, and compelling storytelling that justify their pricing.

4. Targeted & limited-time offers

“Discounts for the sake of discounts” cheapen your brand. Instead, focus on time-bound, segment-specific promotions that feel intentional and exclusive.

5. Customer-centric marketing

Your marketing strategy should go beyond selling — it should make customers feel seen and understood.
When buyers believe you’re listening, they stay loyal — long after the discount ends.

final thoughts

Discounts are a powerful sales tool, but overusing them can:

• Weaken your brand equity
• Build loyalty based on price, not connection
• Trap you in price wars with competitors

The real winners? Brands that balance discounts with:

• Personalized offers
• Strong loyalty programs
• Premium positioning
• Clear, consistent brand storytelling

At the end of the day, customers stay not because you’re cheaper — but because you’re more meaningful.

For further investigation:

• Price Wars in Pharma: How Georgian pharmacy chains compete
• Loyalty Programs in Georgia: What works and what doesn’t
• Discount Strategies from Premium Brands

Sources:

• useinsider.com
• ijsred.com
• insidebe.com
• magid.com