When 50% Off Doesn’t Impress Anymore

It hit me at the airport duty-free, of all places.

I was standing in line, clutching a pack of gum I didn’t need, and saw a sign: “Buy 3, Get 2 Free.” My first instinct? Skip. Not because I didn’t like the offer—but because I didn’t trust the product. I didn’t need five. I needed one. And somewhere deep down, the discount just made it feel…cheap.

The funny thing is, I built much of my early e-commerce success around deals. Price slashes, flash sales, combo packs—we did it all. Customers loved it. The needle moved. But lately, I’ve noticed something different. Discounts don’t always land like they used to. They don’t excite—they raise eyebrows.

And I’m not the only one feeling it.

The Price of Cheap

A friend of mine runs a niche skincare brand. Last Diwali, he tried a deep-discount campaign—30% off across the board. Traffic soared. But return rates doubled, and repeat purchases dropped. When he asked customers why they didn’t come back, one answer stood out: “It didn’t feel premium anymore.”

We used to think lower prices meant more volume. But in today’s market, lower prices can mean lower trust.

A 2024 study found that over 58% of Gen Z buyers associate excessive discounting with poor product quality. And that’s the generation spending $360 billion annually. They’re not buying the cheapest—they’re buying what feels right.

Experience Over Price Tag

Walk into a D2C home décor brand’s showroom in Austin or scroll through their Instagram—what you see isn’t “50% OFF!” plastered everywhere. You see craftsmanship, origin stories, responsible sourcing. You see value.

At Ergode, we’ve tested both ends. When we spotlight features—durability, design intent, sustainable packaging—conversion rises, even if the price holds. When we lead with “25% OFF!” The bounce rate tells its own story.

Today’s customer is asking, “Why should I pay for this?” But they’re not asking for a lower price. They’re asking for a better reason.

The Smart Middle

Now, I’m not saying kill all discounts. I’m saying use them with purpose.

Limited drops with loyal customers. Value-add bundles, not price-slash bundles. Early access for subscribers. Think of them as rewards, not bait.

I remember a brand in Mumbai that bundled its organic spices not with a discount, but with recipe cards and a video series. Same price. Triple the retention. Why? Because it felt generous, not desperate.

Here’s My Take

So here’s where I land, post-duty-free and gum-free. Huge smiles.

Price is no longer the loudest message. Meaning is. And when we lead with value—whether that’s sustainability, storytelling, or substance—people stay. Discounts still have their place, but they’re not the showstopper. They’re the footnote.

If you’re building something—whether it’s a brand, a store, or even just your own shopping habits—ask yourself:

Is this about real value? Or just a quick win?

The future doesn’t belong to who sells cheapest.
It belongs to who sells best.

Regards,
Rupesh