As Consumers Feel the Squeeze, These Creative Discount Strategies Are Driving Sales

Here are the deals that entice customers to walk through the door—and come back again.

BY ALI DONALDSON, STAFF REPORTER @ALICDONALDSON

Illustration: Inc; Photo: Getty Images

Consumers are feeling the crunch. In the past month, gas prices have climbed from a national average of $2.98 a gallon to $3.98 a gallon, and Americans expect to keep paying more at the pump. After watching those numbers tick up day after day, consumer sentiment in March plummeted to one of the lowest levels on record, as Americans’ expectations for business conditions over the next year cratered and nearly half of people surveyed said prices were impacting their personal finances. Even the mood among higher-income Americans, who are usually bolstered by their stock portfolios, has soured.

In this environment, founders are getting creative with how they offer discounts in a bid to attract price-conscious consumers. 

Andy Gottlieb, the founder of Sandwell, a New York City-based sandwich chain with two locations in Manhattan, wanted to find a way to entice more people to walk into his restaurants, so he designed a deal that can only be claimed in person. From 3 p.m. to 6 p.m. when the counter service slows, Sandwell runs a promotion called “flip for fifty.” Each customer gets a chance to flip a coin at the register. If they win, they get 50 percent off their order. 

“It sounds simple, but it completely changed the energy in our stores,” says Gottlieb, who did not want to resort to the fast casual industry default of texting promo codes of offering in-app discounts, which he says can drive transactions, but do not often lead to long-term loyalty. 

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“The coin flip does exactly that: people laugh, cheer, and some even film it to share on social media,” he says. “Win or lose, they’re engaged, and we’re building brand affinity, not coupon dependency.”

Aaron Giles has taken a different tack and brought his company’s discounts directly to the places where his clients and potential clients already are: industry associations. The founder and managing partner of Agile Consulting Group, a consulting firm in Norcross, Georgia that focuses on sales and use taxes, partners with industry groups that represent the kinds of businesses he sees as ideal clients.

“We join the association as a member or sponsor and work with its leadership to establish our firm as a preferred vendor for its membership,” says Giles. “In exchange, we offer association members a discounted contingent fee structure.”

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