Early on, Mary Kay's company sold individual items from its five-part skincare set. This led to poor results and negative word-of-mouth. They stopped this practice, prioritizing the customer's full experience and the product's efficacy over easy, short-term revenue, thus protecting the brand's reputation.

Brands often misinterpret repeat purchases driven by discounts or points as genuine loyalty. True loyalty is an emotional connection, not a transactional one. This "entrapment" model fails to build lasting customer relationships or brand affinity.

For luxury brands, raising prices is a strategic tool to enhance brand perception. Unlike mass-market goods where high prices deter buyers, in luxury, price hikes increase desirability and signal exclusivity. This reinforces the brand's elite status and makes it more coveted.

If your buyers consistently wait until the end of the quarter, it's not just your strategy. Large software companies have conditioned the entire market to expect a discount for holding out, creating a systemic purchasing behavior that affects your deal velocity regardless of your own pricing policy.

Pricing power allows a brand to raise prices without losing customers, effectively fighting the economic principle that demand falls as price rises. This is achieved by creating a brand perception so strong that consumers believe there is no viable substitute.

When a new KFC premium product wasn't selling, they doubled the price instead of discounting it. This aligned the price with consumer expectations for a premium item, signaling quality and causing sales to soar. Low prices can imply low quality for high-end goods.

Maximizing profits in a crisis, such as a hardware store hiking shovel prices during a blizzard, ignores the powerful economic force of fairness. While rational by traditional models, such actions cause public outrage that can inflict far more long-term brand damage than the short-term profits are worth.

When pressured to hit quarterly targets with promotions, use a simple filter: 'Does this action increase the long-term desirability of my full-price product?' This framework helps balance immediate revenue needs with the crucial goal of protecting and building brand equity, preventing a downward spiral of discounting.

AI uses shopper clickstream and sales data to segment customers and SKUs with precision. This allows brands to offer targeted discounts where needed, maintaining trust by avoiding deceptive practices like shrinkflation and being transparent about necessary price increases on less elastic products.