It’s early 2026, market demand is soft across many industries, and everyone’s freaking out about their pipeline.

I get it. Things are iffy out there. Customers are sitting on cash like dragons hoarding gold. Every deal takes twice as long to close. Your competitors are slashing prices, and you’re thinking, “Maybe we need to get more aggressive on pricing too.”

Stop. Don’t grab for that falling knife.

Most businesses have bought into the unconscious belief that discounts can somehow create demand. Like if you just drop your price enough, buyers will materialize out of thin air. That’s not how this works.

The Diaper Test

I’ll make this clear with what I call the diaper test. You could offer me 90% off diapers today, and my diaper spending would increase by exactly zero dollars. Why? My kids are teenagers. I have zero need for diapers, and no discount will create that need.

Only people with needs buy. Period. Full stop.

If someone’s buying from you at a discount, the demand already existed. You didn’t create it. You just left money on the table.

The Three Discounting Delusions

When I dig into why companies discount during uncertain times like these, I see three problematic patterns.

1. Discounting for Discounting’s Sake, Though You Don’t Know It (The Worst Kind)

This is when you discount to someone who already has the need right now and the budget and the willingness to pay. But they use classic negotiating tactics, wielding market conditions against you to project a phantom volume threat and scare you into discounting.

Here’s the kicker:  a lot of companies never realize they’re doing this. They think they’re “being competitive” or “doing what it takes to closes deals in a tough market.” But they’re closing deals with customers who would’ve been a ‘yes’ anyway but at a higher price.

2. Eating Tomorrow’s Seeds Today

A similar situation is when you discount to someone who will have the need eventually. Maybe next quarter. Maybe in six months. They have a future need, and your discount just convinced them to buy now instead of later.

You didn’t create demand; you just pulled it forward. You might be eating the seeds you should be planting for tomorrow’s crop at a discount. Most companies don’t see this because they’re too busy celebrating the “win.” But you’re borrowing from future-you, creating an addiction to the drug of discounting.

3. The “Strategic” Market Share Grab

“But what about using discounts strategically during a downturn to gain market share?” you ask.

In hard-hit industries, everyone’s fighting for scraps of a shrinking pie, slashing prices in a bloody race to the bottom. And for what? To gain share in a down market that you may lose when things recover and customers shop around again?

Meanwhile, you’ve trained the entire market that your category is worth less than it used to be. Good luck unwinding that when times get better.  Isn’t there a better way to differentiate yourself to gain share than mass discounting?

What’s Actually Happening Right Now

Here’s what our clients and prospects are telling us: Buyers aren’t disappearing. They’re just scrutinizing purchases more. They want clearer value, stronger outcomes, and more confidence in their decision.

Read that again. They want MORE CONFIDENCE, not lower prices.

When buyers are uncertain, they don’t want cheap; they want safe. They want proven. They want guaranteed outcomes. Discounting sends the exact opposite signal. It screams, “We’re not confident in our value either!”

The Alternative to Grabbing Falling Knives

Instead of discounting, here’s what actually works in uncertain times:

• Double down on value communication. If buyers need more confidence, give them case studies, guarantees, proof. Show them exactly how you’ll deliver outcomes. Ask insightful questions to deepen your understanding and their trust.
• Restructure, don’t discount. Strip out the nice-to-haves and create a leaner offering at a lower price point for budget-driven decision makers. But keep your core offering at full price for those who need the complete solution.
• Adjust payment terms, not prices. Cash flow is tight. Spread payments out, defer start dates, tie payment to milestones. Help with their cash management without destroying your price integrity.
• Have some courage. While your competitors are fighting for scraps and destroying their margins, you can maintain pricing and pick up the customers who still value quality and outcomes. There are always buyers who won’t compromise on value, even in tough times.

The Bottom Line

Discounts don’t create demand. They can only capture demand that already exists, and often at the cost of profits you didn’t need to sacrifice.

In uncertain times, the instinct to discount is strong. Resist. Don’t grab for that falling knife.

Because when the dust settles and the market recovers, companies that maintained price integrity will have stronger margins, better customer relationships, and a brand that still commands premium pricing.  The discounters? They’ll still be fighting for scraps, wondering why customers won’t pay full price anymore.

Your move.