Should your brand play the discount game or stay premium?

Should we offer discounts or maintain a premium pricing model?

Let’s say you price your polo at ₹1,500. For a couple of months, you sell steadily. Then comes Diwali. The thought creeps in, should I launch a Diwali sale to boost orders?

Or maybe you think about a launch offer for a new collection, 15% off for the first two weeks. Or a clearance sale once a year to move slow stock.

These are real questions that shape your brand identity. The discount trap!

In standardised price products like petrol, everyone knows the real price, and even a Rs. 1 discount will attract a huge market to your fuel station.

But t-shirts are non-standardised products. There is no fixed price. There is no one to fix the price. So, it is not about the value of the product; it is about the perceived value of the product. For this category, there is always a risk when it comes to deciding on discounts.

Here’s the risk: once customers see you offering discounts often, they start waiting for them. They delay purchases.

They don’t see your regular price as the real price anymore - it becomes the “inflated price before the sale.”

Soon, most orders happen only during sale periods. And when that happens, you’ve trained your audience to buy on your terms but not in a way you wanted.

On the flip side, if you stick to fixed pricing year-round, you protect your brand’s perceived value. Luxury labels like Rolex never go on sale because they’re selling prestige, not just a product.

But here’s the catch: even brands like Lacoste run sales a few times a year. Why?

Because discounts are not evil when used strategically, they drive urgency, clear inventory, and bring in new customers who might return at full price.

The middle ground

You can choose to:

• Stay fixed most of the year.

• Run 3–5 planned promotions annually, festivals, anniversaries, or limited launches.

• Have one major clearance each year to free up capital for new styles.

This way, you’re not training customers to wait for discounts, but you’re still using them as a growth lever.

The truth? 

It’s not about whether discounts are “good” or “bad.” It’s about how you want to position your brand:

• Cash-flow focused → frequent discounts may be fine.

• Long-term brand equity → fixed pricing with rare, meaningful sales.