Don’t Discount Premium Products

Emphasize the the quality of your product instead.

Don't offer an expensive watch on sale


Luxury discounts are usually harmful:

  • Weaker Brand. Customers buy luxury brands to boost status. Discounts tarnish this status because the brand is more accessible to a wider audience.
  • Price Sensitivity. Customers focus on price, rather than quality. And luxury products don't win on price.
  • More Likely to Wait. Customers are more likely to wait for the next discount, especially for premium products (Wathieu, Muthukrishnan, & Bronnenberg, 2004).

  • Wathieu, L., Muthukrishnan, A. V., & Bronnenberg, B. J. (2004). The asymmetric effect of discount retraction on subsequent choice. Journal of Consumer Research, 31(3), 652-657.