Discount-heavy pricing strategies create long-term cycles of dependence that lead to promotion-addicted shoppers and lowered profit-margins—companies end up repeatedly undercutting themselves. Brands and retailers, therefore, are looking for ways to wean people off of these discounts and utilize everyday low-price strategies and or other pricing strategies that undercut competitors. Newer direct-to-consumer brands have broken free from these models by using a high-priced “straw man,” eliminating the need for discounts and opting for low- and full-price models.

This article is exclusive to Loose Threads Members, who get access to actionable analysis, insights and private events that help you drive growth in the rapidly changing consumer economy.