Continuing through our Pain Points series – when competition heats up, price is often the first lever businesses pull. But in a world where product parity is common and customer expectations constantly evolve, slashing prices to stay competitive can lead to shrinking margins, eroded brand equity, and short-lived customer loyalty.
What if there were a better way to compete — one that didn’t involve racing to the bottom?
At 212F, we help B2B brands shift the focus from discounting to delivering value through tailored loyalty and incentive programs. The result? Customers stick with you for what you offer beyond the product—and your margins remain protected.
For many B2B brands, price protection isn’t just about holding firm on list pricing—it’s about maintaining value perception, brand credibility, and profitability in the face of mounting market pressure. In industries where competition is fierce and product differences are minimal, pricing often becomes the battleground. Customers come to expect discounts, procurement teams are incentivised to secure the lowest possible rates, and frontline sales teams feel compelled to offer concessions to close deals.
But over time, this reactive approach takes a toll. Margins erode. The perceived value of your product or service declines. Worse still, customers begin to associate your brand with price—not performance, innovation, or partnership.
At 212F, we define price protection as the ability to sustain pricing integrity without losing market share, profitability, or customer loyalty. It’s not about avoiding competition—it’s about redefining how you compete. Loyalty and incentive programs offer a strategic lever to shift conversations away from cost and toward value.
When customers are rewarded for behaviours that align with your goals—like sustained purchasing, increased product mix, or long-term commitment—they’re less likely to make decisions based on price alone. The result? Stronger relationships, improved margins, and a competitive advantage that goes beyond dollars and cents.
Price protection challenges can present in different ways depending on your industry, customer base, and channel dynamics. Below are four common concerns B2B businesses face when trying to protect their pricing integrity.
“Our offering is being compared purely on price, even though we deliver more value.”
When product or service differentiation is unclear or under-communicated, customers begin to view suppliers as interchangeable. In this environment, procurement teams feel empowered to play vendors against each other, creating a race to the bottom on price.
“We’re constantly discounting to close deals, and it’s training customers to expect it.”
A culture of habitual discounting can undermine pricing structures and damage long-term profitability. While short-term discounts may help secure a sale, they often fail to build lasting relationships or loyalty—leaving margin on the table.
“Our buyers are focused solely on cost, not value.”
Many B2B supplier relationships are managed by procurement professionals who are rewarded for cost reduction, not relationship strength. Without mechanisms that reward ongoing engagement or partnership, suppliers are judged primarily on their price tag.
“Our team isn’t aligned on pricing value, leading to uncoordinated offers and concessions.”
Without clear frameworks or tools, sales teams may vary widely in how they communicate value—or when they resort to discounts. This inconsistency weakens price integrity and can harm brand perception in the market.
According to Deloitte, 75% of B2B buyers consider price a key decision factor, but 64% say they would pay more for a better customer experience¹. Similarly, McKinsey notes that organisations with strong pricing discipline can improve margins by 2–7%²—significant uplift in high-volume industries.
When these concerns go unaddressed, they create a ripple effect—eroding brand trust, compressing margins, and damaging long-term growth potential. Recognising them is the first step to building a loyalty strategy that actively protects price while delivering value.
If your business is struggling to maintain pricing integrity in a competitive market, loyalty and incentive programs can help shift the conversation from cost to value. But the first step is understanding how price pressure shows up in your organisation—and where a program can create behavioural change. These five questions can help uncover opportunities to protect your pricing strategy through a loyalty lens.
1. Are we regularly offering discounts to retain customers or close sales?
Understanding how often—and why—discounts are being applied is a key indicator of pricing pressure. If discounting is the default, a structured loyalty program could help create value in a different way.
2. What differentiates us beyond price, and are we rewarding customers for recognising that value?
If you invest in service, product quality, training, or technical support, a loyalty program can reinforce these benefits by rewarding engagement—not just spend.
3. Are our sales teams aligned on our pricing strategy and equipped to defend value?
Programs can provide sales teams with the tools and incentives to promote long-term value over short-term wins, reinforcing pricing discipline in customer conversations.
4. Do our best customers feel recognised and rewarded for their loyalty?
Recognition can create emotional loyalty. When top-tier customers feel valued beyond the transaction, they’re less likely to negotiate solely on price.
5. Could a loyalty program help us shift price-based conversations to performance-based ones?
Instead of offering discounts, consider rewarding customers for reaching spend tiers, trialling new products, or maintaining exclusivity. This shifts the dynamic from reactive to strategic.
Price pressure is a constant in B2B—but it doesn’t have to be a vulnerability. With a tailored loyalty or incentive program, your business can build stronger customer relationships, maintain pricing integrity, and deliver long-term value without compromising margins.
