How do companies that permanently use large discounts and offers sustain their strategy?

In his analysis of setting prices, Ariel Baños, an expert on the subject, explains the elements that companies should take into account when offering discounts and promotions to their customers, warning how the cost assumed when providing a discount must be “shared”, what kind of promotions should be avoided, depending on the business, and what limits should be established on the number of items that can be part of the discount strategy, among other things.

From the article “4 ways to offer discounts without losing money”, from the founder of Fijaciondeprecios.com:

Association: Share the economic sacrifice of the discount among all the parties who benefit from the promotion: supplier, sales channel, credit cards, banks, etc.

Compensation: Make a significant discount on a high visibility product in order to generate traffic from customers who will also buy non-promoted items.

Selection: Avoid massive discounts, defining filters so that only “price buyers” access them E.g. discount coupons, specific days, online sales channels, outlets, etc.

Limits: Define reimbursement limits or maximum allowed purchases of promoted items, in order to avoid customers accumulating excessive stock and purchasing for resale.