📉 Price cuts ≠ growth

Most discounts demand scary volume jumps. Read on to see what to check before you enter the discount zone👇

Discounting strains margins and cash flow 💸

And “cut price = sell more” is often weaker than it looks.

Why?

It’s just math. 🧮

One formula links revenue, price, and volume changes:
r = p + q + p*q
(r,p,q: % change of revenue, price, quantity)

You can use this formula to estimate the real volume uplift needed to hit revenue targets at a given discount. In most cases, your targets get harder — not easier.

Here’s why 👇

1️⃣ Big price cuts create uncertainty:

👉 Perception risk: large cuts can signal panic and erode trust

👉 Price sensitivity: changes quickly over price, so your estimates can fail

2️⃣ You often need +15–25% volume (hard)… or 25%+ (very hard):

👉 You’ll need more than price cuts: extra marketing, bundles, value drivers 

👉 Even if demand spikes, few orgs can support it: supply, production, and operations snap first

If price cuts are your main growth lever, think twice about whether they’ll yield the expected results 🎯

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