A recent Yankelovich study proved what we’ve been saying for years: cents-off discounts and product giveaways don’t build brand loyalty. What is interesting about the Yankelovich study is that these kinds of promotions actually “damage” brands in the long run.

This makes sense when you think about it. Consumers assume that your brand has already passed the “quality” test, or it wouldn’t be on the shelf in the first place. By discounting it, you’re devaluing it in the consumer’s mind. At the same time, you’re cultivating an image for your brand that tells the consumer your product is normally overpriced. Even worse, regular price discounts condition the consumer to buy your product only when it’s on sale.

At this point, we recommend price promotions and buy-one-get-ones for our speciality food clients only during a product’s introductory phase and for a very specific, short length of time. Retailers will fight you on this, because price promotions make their job easier, but if your product is truly special and worth its retail price, you should resist caving in to their demands.

If you’re getting pressure from distributors and retailers to discount your product, do it once or twice a year, possibly in conjunction with in-store promotions that highlight your brand’s attributes. After all, the equity your brand has in the marketplace is your most valuable asset.