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Seasonal and promotional pricing

Discounting deliberately rather than reactively.

Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.

What it means

Promotions include sales, multibuys, bundles, introductory offers and time-limited discounts.

Why it matters

A discount costs more margin than most people calculate — see margin. At 40% margin, a 10% discount needs a third more volume to break even.

What it looks like in practice

Price marking rules require the price to be clear, and reference pricing — "was £100, now £60" — has specific rules about how long the higher price was charged.\n\nDrip pricing is now specifically targeted by the DMCC Act.

What to watch out for

Habitual discounting, which trains customers to wait and destroys the reference price. And promotions that cannibalise full-price sales rather than adding new ones.

Where to get proper advice

Business Companion on price marking. Your own margin arithmetic before agreeing any discount.

Where to read more

Last reviewed 2026-08-28 by Fiducia Together · Next review due 2027-08-28

Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.

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