I recently read an article about Veterans Day that touched on the concept of loss resulting from the spoils of war. This loss is, in essence, the price of pride—a consequence of glorifying winners that inadvertently creates losers. When the ego becomes fixated on control and domination, it overlooks the profound human costs.

But what is the cost of a "winner takes all" mentality?

In consumer behavior, when we see a discounted product, our brains activate the reward system, releasing dopamine, giving us a sense of satisfaction as if we've "won" a good deal. This feeling of getting a bargain not only makes us more likely to buy the item but also leaves us feeling smarter and happier about the purchase, driven by our innate desire to maximize gains and conserve resources.

Yet, who really loses in this discount-driven cycle?

The Brand

Consider the immense effort brands put into creating exceptional products—the time, energy, and money poured into research, design, and marketing. Discounting devalues all that effort, diminishing the brand’s perceived worth and undermining the product's original value.

The Retailer

Discounting also impacts retailers, often jeopardizing their relationships with brands and customers. When a retailer discounts excessively, it may violate Minimum Advertised Price (MAP) agreements, which can strain brand partnerships and erode trust. Once broken, trust is hard to repair and can lead to:

- Emotional and mental health issues: For both employees and consumers, trust issues may provoke anger, sadness, confusion, and stress.

- Damaged relationships: Trust breaches often lead to strained interactions, with hurt feelings replacing productive communication.

- Insecurity and doubt: Relationships may suffer from ongoing insecurity, making it challenging for either side to feel secure or committed.

The Consumer

For consumers, a discounted price may provide a fleeting dopamine hit but often detracts from the product’s actual value and experience. Missing out on the genuine experience a quality product provides can leave the consumer feeling unsatisfied, or as though they’re missing out. These feelings might include disappointment, regret, or a sense of FOMO, and in some cases, a perceived loss of opportunity to grow or connect.

Breaking the Cycle

Recognizing the damaging effects of excessive discounting is the first step in redirecting this “large ship.” Many brands today are raising the bar by investing in products that provide exceptional quality and value. By doing so, they create an environment where price reduction isn’t necessary for success.

Steps Toward Behavioral Change

To move away from discounting, brands can consider the following steps:

1.  Understand the impact: Examine how discounting may be devaluing your brand.
2.   Identify barriers: Recognize obstacles to changing this behavior.
3.  Set goals: Clear goals help direct efforts and focus.
4.  Create an action plan: Detailed plans can guide a shift in strategy.
5.  Replace the behavior: Substitute discounting with other value-focused strategies.
6.  Analyze influencing factors: Reflect on elements driving discounting, and consider adjustments.
7.  Hold yourself accountable: Take responsibility for actions and align with brand values.
8.  Practice forgiveness: While it may seem unusual in business, forgiving can be surprisingly effective.

In the end, consider this: What can you and your brand genuinely control? What impact can you make? Let go of the “winner takes all” mindset, and choose actions that build true, lasting value.