Discount pricing is a strategy where products or services are offered at reduced prices—either temporarily or permanently—to attract customers, boost sales, or clear inventory. Discounts can be a percentage off, fixed price reduction, bundle deal, or time-limited offer.
Why it matters for startups
Discounts can be a powerful growth lever when used strategically—especially to drive early adoption, reward loyal customers, or compete in crowded markets. But overuse can damage your brand or train users to wait for the next deal.
When should a startup use discount pricing?
At launch, during a seasonal campaign, or when trying to re-engage dormant users. Use sparingly and with a clear goal.
How do I avoid becoming too discount-dependent?
Limit frequency, use urgency, and pair discounts with real value (e.g., onboarding, support, new features).
What’s a smart way to offer discounts without hurting margins?
Use bundle pricing or offer value-added deals (e.g., free month, extended trial) instead of simply slashing prices.
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