Does offering frequent discounts or coupon codes risk devaluing our product, or can we use promotions strategically without hurting our brand (for example, only doing it for product launches or events)?

Based on our SaaS pricing book, Price to Scale, frequent deep discounting can indeed risk devaluing your product over the long term. Here are the key points to consider:

• Frequent, low-price promotions can accelerate the sales cycle but may undermine your product’s value proposition and brand perception, as customers may come to expect lower prices as the norm.

• Instead of regular, unilateral discounts, our book advises using promotions strategically. For example, tying discounts or coupon codes to specific events—like product launches—or as part of a broader, value-based incentive can help maintain brand equity.

• It’s important to segment your customer base and offer tailored alternatives. Rather than simply cutting the price, consider bundling upgrades or requiring a longer commitment, which can add more value rather than just reducing it.

• The book also highlights the risk that deep discounting could lead to a race to the bottom, making it difficult to justify full price later. Therefore, maintaining some friction in the sales process (by not defaulting to quick deep discounts) helps preserve both revenue margins and brand integrity.

In summary, while strategic promotions can be effectively used for events or launches, Price to Scale warns against habitual deep discounting. The recommended approach is to use well-planned, condition-based promotions that reinforce the value and longevity of your product rather than simply lowering its perceived worth.

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