The Side Effects of Discounts

By Peter Lyle DeHaan, PhD

I recently shared my experience with my office supply chain’s enticing coupon offers. The result was a short-term increase in my buying habits, followed by a prolonged lull.

In like manner, years ago, my Internet hosting company embarked on a similar strategy. Their approach was offering discounts. Depending on the offer, it would be 10 to 30 percent off for a specific product purchase or for a certain level of spending. Each discount offer was time-sensitive, lasting from a few days to a couple of weeks.

They had sent me 10 such offers for four weeks; that averages one discount about every three days. Whenever I needed to buy something from them, I know there was a discount that would apply.  I simply picked the best, most applicable one, and saved money—on every purchase.

Not only had their incessant discount offers trained me to expect to not pay their standard prices, they had also lost money, as I would had made every purchase anyway.

While I was enjoying the savings, I was left wondering, “What were they thinking?”

Read more in Peter Lyle DeHaan’s Sticky Series books, including Sticky Customer ServiceSticky Sales and Marketing, and Sticky Leadership and Management featuring his compelling story-driven insights and tips.

Peter Lyle DeHaan is an entrepreneur and businessman who has managed, owned, and started multiple businesses over his career. Common themes at every turn have included customer service, sales and marketing, and leadership and management.

He shares his lifetime of business experience and personal insights through his books to encourage, inspire, and occasionally entertain.

By Peter Lyle DeHaan

Author Peter Lyle DeHaan, PhD, publishes books about business, customer service, the call center industry, and business and writing.

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