#156: “May I have a discount?”

Discounts, discounts, discounts! @freyfogle and I discuss how we respond to customers asking for discounts, whether we should offer Cyber Monday offers, and how offering discounts can hurt future sales.

You can also listen to and download this episode here.

I stopped any sorts of public promotions years ago. Only on-request discounts, like non-profit, educational, or discounts offered personally for some users e.g. beta testers. Prople know there are never discounts so they won’t be waiting and delaying their purchase. Removing the “Discount code” field on order page is the first thing I do in case I integrate a payment processor (why they always have it on by default?)

Giving the product away for 50% of the price on black friday only because it’s a black friday? No way!


Fully agree with @Dmitry — I tried doing special trade-show promos, with discount codes on leaflets, just to encourage people to take action in a limited timeframe when they see a leaflet. But response rates were poor and the customers acquired this way churned quickly.

In retrospect, this isn’t that surprising. In a SaaS, unless you offer a lifetime discount (which you should not do, as it threatens the sustainability of your business), discounts are not that interesting. So what if I get 50% off for the first year — I have to pay anyway, and subsequent years are full price anyway.

Discounts for individual customers are an entirely different story, though, and I look forward to listening to that podcast :slight_smile:

Possibly an area where there’s a difference between B2C/B2B.

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