Discounts create a quick revenue spike that feels like growth but actually pulls sales forward from future periods. You lose margin, train customers to wait for deals, and get trapped in a cycle of deeper discounting just to hit targets.
So why do you think brands default to discount if they're so problematic here?
That's a good question. I'd say because they're easy and they're just really fast, right? It's like a quick hit. You know, as I mentioned before, like you need revenue this week, just run a sale. You get that spike and you get that adrenaline rush.
But as we all know, that revenue spike is almost borrowed money from the next month.
Yeah, that's exactly right. Because customers who would have bought full price next week, they just bought it 20% off today.
So you didn't really create new demand. You pulled future revenue forward and basically gave up margin, right?
Exactly. And then next month, You're gonna be in the same hole. Discount again.
