Over the coming weeks, we’re diving deep into an often-overlooked force in retail: discounting. If you’ve worked with The Mann Group, you know our stance on blaming—it’s a losing strategy. We believe the same principle applies to discounting. While it can be a quick win, it’s not a true win for either the retailer or the customer. 

Discounting, as the definition goes, is simply “a reduction in price for a good or service.” It’s easy to see why it’s used so frequently: offering something cheaper appears to provide value at first glance. But someone ultimately pays the price. And as the local Asheville community comes back to life post-hurricane, the imbalance of discounting has become even clearer. 

Consider a simple example: I recently visited one of my favorite stores in Asheville to purchase a beautiful box of pencils. However, instead of embracing my interest in buying the full set, the store owner insisted I buy only two pencils. Reflecting now, as I look at images of that store devastated by recent events, I think of how many more of us would have been willing to support their cash flow and resilience by paying full price, by buying in bulk, by investing in their vision. 

Post-hurricane, as stores gradually reopened, I visited another local shop, this time looking for dried flowers. When I inquired about the price, the associate hesitated and explained that the stems couldn’t be sold since they hadn’t been harvested as usual this season. The owner valued their sentimental worth, yet from a business standpoint, selling them could have offered meaningful revenue to cover expenses and make up for lost time. 

At my last stop, a favorite place of mine for finding joy, the owner offered me a discount at checkout as a token of appreciation for my support. I stopped her and said, “Please don’t discount. Who wins from this?” Tears welled up in her eyes as she realized the value of her goods and that a true relationship between us didn’t hinge on a discount.

Discounting vs. Reciprocity

Discounting can be a short-term fix but is rarely a long-term solution. When we resort to discounting, it often becomes a substitute for genuine connection. It can create a feeling of scarcity—an unspoken message to the customer that there isn’t enough value here, or that the product isn’t truly worth its original price. Over time, this erodes the relationship, creating the perception that the store’s only leverage lies in lowering prices.

In contrast, the Law of Reciprocity has a very different effect. Reciprocity is the practice of giving back in response to receiving something of value, whether it be a kind gesture, a product, or a service. According to author Robert B. Cialdini, reciprocity is one of the most powerful social influences, instilling in us a natural inclination to return the favor. When applied in retail, reciprocity fosters a win-win dynamic that sustains relationships and supports both the business and the customer.

During the recent hurricane, we witnessed countless acts of reciprocity—people giving freely with no expectation of return. From donation pages to benefit concerts, this response reminds us of a profound truth: there is enough for everyone, and we have a natural desire to give. 

In retail, creating this sense of reciprocity doesn’t need to involve lavish gestures. It can be as simple as listening to a customer’s needs, understanding why they’re in the store, or helping them find a product that truly resonates. Building relationships based on reciprocity creates loyalty, goodwill, and often repeat business—without the need to compromise the perceived value of products through constant discounts.

Making Reciprocity Work for Your Brand

How can retailers build a culture centered on reciprocity rather than defaulting to discounts? Start by identifying and embracing values that resonate deeply with your business and community. Think of brands like TOMS, which built a devoted customer base through their one-for-one model: for each pair of shoes sold, another was donated to someone in need. This approach transformed each purchase into a purposeful act, strengthening customer loyalty through a shared mission.

Consider your own core values. What unique contribution are you willing to make—something that goes beyond societal norms? Identify any gaps in your community that your brand could meaningfully address. Think about what matters to you and how you can add value in a way that reflects that passion. Let these questions guide your approach.

Next week, we’ll explore more ways to shift our influence toward a model that emphasizes reciprocal value—one that strengthens businesses while elevating the customer experience. By cultivating a culture focused on giving, not discounting, we can redefine success in retail.