Managing Discounting Pressure in Quick Commerce Without Eroding Profitability: Practical Tactics for Brands

Discounting is a double-edged sword in Quick Commerce. While it can drive volume and fend off competitors on platforms like Zepto, Blinkit, and Swiggy Instamart, unchecked discounting quickly eats into margins and conditions customers to expect perpetual deals. 

At RevQ India, we help brands navigate this challenge daily. Here are actionable tactics to manage discounting pressure, without sacrificing profitability:

1. Set Strategic Discount Thresholds 

Define data-driven discount limits by product category and sales volume, adjusting for market shifts. Implement a tiered approval process where small discounts are auto-approved, and larger cuts require higher-level sign-off to align with strategic objectives.

2. Leverage Data for Targeted Promotions

Utilize real-time data from platforms like Zepto and Blinkit to understand demand and competitor pricing. Offer dynamic discounts during specific occasions (e.g., Karnataka Rajyotsava) to maximize customer value and foster emotional connections, rather than blanket offers.

3. Focus on Value-Added Differentiation 

Emphasize services like bundled offers or exclusive products to enhance perceived value, reducing the need for heavy discounting. Run limited-time promotions with urgency, like flash sales, to engage customers without habitual discounts.

4. Monitor Margin Impact 

Track discounts' effects on gross margins to ensure short-term gains do not harm long-term health. Maintain pricing discipline across channels to prevent conflicts and protect brand equity.

5. Pre-Allocate Discount Budgets

Treat discount budgets as a planned investment in customer retention rather than a reactive expense. Model list prices considering expected discounts to ensure target revenue and margin goals are met.

By understanding the motivations behind discounting and employing advanced controls and key performance indicators (KPIs), businesses can effectively use discounts to enhance both short-term performance and long-term growth. It is crucial to strike a balance, ensuring that discounting supports rather than undermines the pricing strategy.

Discounting should be viewed as a strategic tool, not a crutch. Successful brands in quick commerce leverage data to target promotions, protect profit margins with smart controls, and create value beyond pricing. At RevQ, we help organisations transform discounting from a margin drain into a strategic lever for sustainable growth.