Article

The Art of Discounting

Rafi Mohammed · Harvard Business Review Paid Advanced

A pricing consultant's argument that most companies discount reflexively instead of strategically, with a framework for deciding when a discount actually earns you something back. Useful once you're past the first pilot and start seeing discount requests as a pattern, not a one-off. Helps you turn the genuine reason test into an actual policy.

  • Most discounting is a reflex, not a strategy
  • Tie every discount to something you get in return, not just goodwill
  • An unearned discount trains the buyer to expect one every time

The question it answers

  1. Should I offer a free trial, a paid pilot, or a discount to close my first customers?

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