Almost every brand discounts, and most discount more than they did a year ago. But new data from Klaviyo and ProfitPeak, covering thousands of brands across Australia, New Zealand and beyond, reveals an uncomfortable truth: the brands discounting hardest grow the least and profit the least. 

And for premium, considered brands, the damage runs deeper than margin.

This episode isn’t about the occasional planned sale, every brand runs the odd genuine event, and that’s fine. It’s about what happens when discounting quietly becomes the entire strategy.

Catherine unpacks why a constant sale doesn’t just cost you money, it trains your best customers the way Pavlov trained his dogs to wait for the next discount instead of buying now. 

Then she offers the reframe that changes everything: the question isn’t whether to be generous, it’s whether your generosity rewards a behaviour or discounts a product. And for anyone who recognises themselves in the discount cycle, she’s honest about what it takes to climb out.

In this episode:

• Why the occasional planned sale is fine, and constant discounting isn’t
• Why the heaviest discounters grow slowest, and the 19 point margin gap in the data
• The reason value brands can’t hide behind “we have to discount”
• The 68% finding and what it reveals about who your sales actually reward
• The real cost of a 40% discount on a healthy margin
• How constant discounting trains your best buyers to wait, the Pavlov effect
• The simple test for telling a good incentive from a corrosive one
• Why Indagare’s always available skincare sets reward a behaviour without ever training a customer to wait
• Why pivoting away from discounting is uncomfortable but completely doable

For the practical companion on how to rebuild after years of discounting dependency, listen to episode 301, Discount Detox.

Data referenced is drawn from the Sugar High paper by James Hurman in partnership with Klaviyo.

Ready to look at where your own incentives are working for you or against you? Book a Brand Growth Strategy Session at productpreneurmarketing.com.