Discounting refers to temporarily reducing prices of goods or services below their regular listed prices to spur sales volume and liquidate excess inventory. Discounts may apply to all shoppers or be targeted to certain customers, products, order sizes, or seasons.
Used judiciously, discounting helps move slow sellers or take advantage of excess capacity. However, regular overuse of discounts can erode brand positioning and profits. Deep discounting also risks creating buyer expectations of perpetual sales. Discounting should align strategically with broader initiatives and economics.