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Don’t Just Build X for Your Country

When Ending a Discount, Decrease It Gradually to Boost Revenue

Offering a discount can motivate consumers, but a small tweak can further increase their willingness to buy. Phase discounts out gradually to make the most out of each one.

Most discounts last for a short period of time before the product goes right back to full price again. But researchers found that steadily decreasing discounts led to a higher willingness to pay, as well as higher revenue. It seems that having at least one intermediate price between the discount and full price amplified the signal that future prices would be higher, and this motivated consumers to buy. So let’s say you offer 50% off for launch week — don’t go back to full price right afterward. Instead, decrease it to (as an example) 30% off the following week, then 10%, and finally, full price.



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Worth Reading

1. Don’t just build X for your country

2. Here is a great thread by Shaan Puri about building social platforms. He busts a big myth “we should help creators more than content consumers”

3. ‘Give away your legos’ and other commandments for scaling startups

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