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 report details the current state of discounting and its detrimental effects on the brands and retailers that feel forced to use the tactic to compel consumers to make purchases—an unsustainable way forward. It also presents actionable questions and opportunities to help brands and retailers figure out how to eliminate this reliance from their discount strategies before they reach the point of no return.

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