Business Articles

The Side Effects of Discounts

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% 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?”

What do you think? Please leave a comment!