1. Introduce ‘Value Adds’ Rather Than Straight Price Hikes
Instead of charging $2 more for the same dish, add a small extra ingredient or garnish and frame it as an upgrade (e.g. “now served with house-made chilli oil”).
2. Implement Stealth Inflation
Reduce portion size slightly or de-bundle items that used to be included (e.g. sides sold separately), but keep the headline price steady.
3. Create Limited-Time Specials at Higher Margins
Offer rotating “chef’s specials” or seasonal items with premium ingredients and higher price points. Customers don’t anchor these to previous prices.
1. Use Partitioned Pricing to Soften the Impact
Instead of increasing a single, all-inclusive price, break down the total cost into components (e.g., base price + small fixed surcharge for ingredients or staff). This can make cost increases feel more transparent yet less painful (Kamenica, 2021).
2. Implement Stepwise, Small Price Increases Over Time
Gradual price increases create less resistance than a single large hike. Frequent, modest increments maintain acceptance by reducing cognitive dissonance and anchoring expectations progressively (Dhar et al., 2023).
3. Frame Price Changes Around Quality and Ethical Benefits
Consumers tolerate price increases better when linked to higher quality or ethical sourcing narratives. This can activate moral licensing and cause consumers to perceive price hikes as justified investments (Lee & Aaker, 2022).
1. “Bring-a-Friend” Offers
Reward your loyal customers for introducing new ones. This leverages social trust, reciprocity, and doesn’t feel like a mass discount.
2. First-Time Experience Packages
Design an “intro offer” that frames the first visit as a curated experience. This acts as choice reduction, risk minimisation, and social proof (because it’s “popular”).
3. Design for Shareability
Instead of pushing ads, create moments worth sharing. This generates earned media and authentic endorsements rather than paid noise.
1. Use Tiered Promotions That Signal Value Differentiation
Structure your promotions so new customers get a distinct, limited-time “welcome” offer (e.g., first-visit discount or exclusive product bundle), while your regulars receive loyalty rewards (points, exclusive access). This avoids price dilution but clearly signals “newcomer value” without undercutting loyal customers’ sense of exclusivity (Xia & Wyer, 2021).
2. Leverage Social Proof in Targeted Ads Featuring Real Regulars
Showcase testimonials or social media posts from satisfied loyal customers in your advertising for new audiences. This provides authentic endorsements and increase trust for new customers (Lee et al., 2022), while implicitly praising your regulars, turning them into brand ambassadors.
3. Frame New-Customer Promotions as Invitations, Not Discounts
Position introductory offers as exclusive invitations (e.g., “We’d love to welcome you to our community with this special offer”) rather than straightforward price cuts. This leverages social identity motives, which are powerful drivers of trial and loyalty initiation (Patel & Kim, 2023). It simultaneously elevates the perceived value of your brand to newcomers without cheapening it for regulars.
1. Segment Your Offers Carefully
Use behavioural segmentation to ensure price-sensitive customers receive value-based offers, while loyal or premium customers get exclusivity-based rewards.
2. Maintain Price Integrity with Thresholds
Try minimum purchase discounts (e.g. $20 off $150+), which provides first-time buyers with incentives. It will also avoid harming perceived value among return customers.
3. Communicate Value, Not Just Price
Even when offering a discount, reinforce why your product is still premium: Talk about craftsmanship, sustainability, social proof, founder story — remind them why it’s worth the full price.
1. Use Occasion-Based and Narrative-Driven Promotions
Tie discounts to unique, themed “special days” or brand-relevant celebrations (e.g., “Luxury Appreciation Week” or “Founder’s Anniversary Sale”). Consumers respond 25% more strongly to promotions anchored in a unique event versus generic offers (Zane et al., 2022).
2. Frame Promotions as “Gifts” not Discounts
Rather than “20% off” or “Buy 2 for $X,” reframe offers as bonus gifts — e.g., “Buy X, get Y free.” Such framing increases perceived generosity and value, reducing returns and improving customer satisfaction. Research shows gift framing reduces returns by up to 50%, helping preserve the product’s premium standing (Lee & Yi, 2019).
3. Limit Discount Frequency and Use Price Anchoring Subtly
Use scarcity cues or limited-time offers anchored to aspirational pricing information (e.g., “For a limited time, enjoy access at an exclusive rate—normally $XXX”). This preserves premium pricing signals while creating urgency, appealing to consumers’ desire for exclusivity rather than just savings.