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End Discounts Gradually

Reviewed by expert Scientifically proven

As shoppers, we are all too familiar with the strategy of luring us in with discounts and then gradually raising prices. We've all experienced it - we find a product we love and then the next time we go to buy it, the price has gone up. This pricing tactic is known as "end discounting gradually " and it's a common way for brands to increase their profits.

Rather than just having a temporary discount, this is about decreasing the discount over time until it's back to it's original price.

Table of contents:
  1. Discount pricing strategies explained
  2. The psychology behind end discounts
  3. How to
    1. Scarcity

Discount pricing strategies explained

There are three different strategies.

  1. Hi-Lo pricing: EUR799 > EUR599 > EUR799
  2. Low prices (always the same): EUR712
  3. Gradually: EUR799 > EUR599 > EUR699 > EUR749 > EUR799

Researchers examined all three price schemes for a EUR24.95 wine bottle stopper over 30 weeks. The progressive withdrawal generated the most revenue.

The psychology behind end discounts

End discounts gradually are a popular pricing tactic, but what is the psychology behind them?

When a customer sees an item that is discounted, they are more likely to perceive it as a good deal and be more inclined to purchase it. This is because our brains are wired to seek out bargains and look for ways to save money.

If they saw the discounted price, but where to late to buy the product for any given reason they now see the increased price. It's still a good deal compared to the original price though. They are still likely to buy the product. It might even be the case they are more likely to buy it because of the FOMO (fear of missing out) effect.

How to

How to end discounts in a way that won't alienate customers? Phase out discounts gradually, over the course of a few months. This will give customers time to adjust to the new prices.

Communicate the change in price to customers ahead of time, so they are not caught off guard.


This pricing tactic can also be combined with scarcity. If you have a product that's limited you could say:

  1. The first 50 people get the product for EUR2,49
  2. The second 50 people get the product for EUR3,49
  3. The standard price for the rest of the people: EUR4,99

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