How to Use Discounts Like a Pro: 6 Discount Pricing Strategies

Understand Different Types of Discounts

Okay, let’s talk basics first. You’ve got two main ways to hand out discounts, and honestly, picking the wrong one can totally kill your strategy.

Manual Discount Codes

These are those little codes people type at checkout. “SAVE20” and all that. Sure, you get to control exactly who uses them. But, the number of times I’ve ditched a cart because I couldn’t find the discount code in my messy inbox? There are too many to count.

Just last week, I spent like ten minutes digging through emails looking for a 15% off code. I eventually gave up and made a purchase from another store. Don’t be that store.

Automatic Discounts

These just happen automatically. There is no need for typing or searching through emails. “Buy 3, get 1 free” kicks in when someone adds three items. Super smooth. Your customers don’t need to remember anything, and you don’t lose sales to people like me who forget everything.

What is discount pricing strategy?

Most people think “discount pricing” means “making stuff cheaper.” That’s not wrong, but it’s missing the big picture.

Real discount pricing is psychology. You’re not just cutting prices—you’re creating urgency, rewarding your best customers, clearing out old inventory, and getting new people to try your stuff. Knowing which goal to pursue is the key to success.

Think of discounts like hot sauce. A few drops make everything better. Pour the whole bottle and you’ve ruined dinner.

6 Discounting Strategies

Tiered Discounts by Spending Thresholds

This one’s pretty sneaky in a good way. “Spend €50, save 10%. Spend €100, save 15%. Spend €150, save 20%.”

Here’s what happens. Someone’s got €45 worth of stuff in their cart. Suddenly they’re browsing around for literally anything that costs €5 just to hit that first tier. It’s like turning shopping into a game where everybody wins.

First-Time Customer Discount

Getting someone to make their first purchase is like getting them to trust you with their Netflix password. It’s a big deal.

But here’s where many stores mess up. They blast new visitors with pop-ups immediately. “GET 20% OFF RIGHT NOW!” That feels desperate, not welcoming.

Better approach? Wait until someone’s actually interested. Like when they’ve been looking at products for a while or added something to their cart. Then offer a “welcome gift” instead of just another boring percentage off.

Free Gift With Purchase

This one’s all about psychology. Offering a $5 lip balm with any $40 purchase feels way more generous than just giving $5 off. Even though it’s the exact same math.

The trick is picking gifts that actually make sense with what you’re selling. Don’t just grab whatever’s collecting dust in your warehouse. People can spot a random throwaway gift from a mile away.

Flash Sales

Twenty-four hours. Maybe just six. Big discounts with a real deadline that actually means something.

Flash sales work because we’re all afraid of missing out. Like, really afraid. More afraid of missing a good deal than happy about saving money, if that makes sense.

But be careful not to overdo it. Frequent flash sales may lead customers to anticipate them. Then suddenly nobody buys at full price anymore.

Personalization Discounts

Instead of throwing discounts at everyone, get smart about it. Offer discounts on stuff people left in their cart. Consider items they perused last week but failed to purchase. Alternatively, they may find items that perfectly complement their current purchases.

Feels less like you’re begging for sales and more like you actually remember what customers want. Which, let’s be honest, is pretty rare these days.

Early Bird VIP Discounts

Your best customers get to shop sales before everyone else. Simple but crazy effective.

Launch that new collection to your VIPs two days before the general public gets access. Even if the discount isn’t huge, that exclusive early access makes people feel special. And people who feel special become loyal customers.

Discount Codes vs. Automatic Discounting

Really, you’re choosing between control and making things easy for customers.

Discount codes give you total control. Great for working with influencers or sending exclusive offers to your email list. But they’re a pain for customers. Typing codes correctly, remembering where you put the email, all that stuff.

Automatic discounts just work. Customers see their savings right away. No hassle, no forgotten codes, and and no abandoned carts because someone couldn’t figure out where to type “SAVE10.”

My take? Use automatic discounts for big, storewide campaigns. Save the codes for when you really need to control who gets what.

What to Consider When Building a Discount Strategy

Building a discount strategy is like building anything else. You need a solid foundation, not just pretty decorations on top.

Implement Loyalty Programs

Loyalty programs turn one-time buyers into people who keep coming back. Points, member pricing, early access to new stuff—it all gives customers reasons to stick around.

Just keep it simple. I’ve seen loyalty programs so complicated they needed their own instruction manual. “Earn points, get rewards” beats “Diamond Elite Platinum Ultra Status” every single time.

Explore Coupon Databases

Whether you like it or not, tonnes of customers check sites like RetailMeNot before buying anything. Are you familiar with the browser extension Honey? Super popular.

Instead of pretending these sites don’t exist, work with them. Give them current, strategic offers instead of letting random old codes float around the internet, making your brand look messy.

Tips for Consumer Savings

Using Discount Aggregator Sites

Understanding how customers hunt for deals helps you serve them better. Most people check at least one coupon site before buying anything online nowadays.

Don’t fight this behaviour. Work with it. Control how your brand shows up on these platforms instead of letting it be random.

Monitoring Seasonal Promotions

Timing matters so much. Back-to-school, holidays, summer clearances—these create natural urgency that makes your promotions way more effective.

Don’t forget about smaller seasonal moments either. Like National Coffee Day if you sell coffee. Or Earth Day if you’re into eco-friendly stuff. These niche moments often work better than major holidays because there’s less noise from competitors.

Offer Discounts the Right Way and Earn More Sales

The real goal isn’t just getting immediate sales. It’s building relationships with people who’ll come back and pay full price because they actually trust your brand.

Your discounts should feel purposeful. Like there’s a real reason behind them beyond just needing to move inventory. Whether that’s introducing new products, rewarding loyal customers, or providing real seasonal value.

How Growth Suite Makes This Simple

Most discount strategies fail because they’re basically educated guesses. Growth Suite totally changes the game.

Here’s how it actually works in practice

The app watches check every visitor in real time. The app tracks the duration of each visitor’s product browsing. What they add to their cart. Where they start to hesitate.

Say someone spends ten minutes browsing your jewellery section. They add a necklace to their cart and then just…stop. That’s exactly when Growth Suite jumps in with a personalised offer: “Hey, get 5% off if you complete your order in the next 15 minutes.”

The really smart part? People who are clearly ready to buy at full price never see any discounts. Only the hesitant shoppers get these targeted offers. So you’re protecting your brand value while saving sales that would’ve been lost otherwise.

When that timer hits zero, the discount code automatically deletes itself from your store. No sharing on social media, no extending deadlines, no fake urgency that resets every day. Just genuine, time-limited offers that actually mean something.

Look, smart discount strategies aren’t about finding some magical percentage that suddenly transforms your business overnight. They’re about understanding what makes people actually buy stuff and creating offers that feel valuable instead of desperate.

When you combine smart thinking with tools that create real urgency and personalisation, discounts become powerful ways to grow your business long-term. Not just quick sales boosts that don’t last. And honestly? Your customers feel valued instead of manipulated. That’s how you build something that actually lasts.

Frequently Asked Question