Is your business blowing it by offering discounts too frequently, or discounting too deeply? Consider a study by the Journal of Consumer Research in which participants were offered a free or discounted package of spaghetti with the purchase of a jar of organic tomato sauce. Both groups were asked how much they would pay for the spaghetti individually. Surprise: Those who got the spaghetti for free with a sauce purchase said they would pay more than the ones offered only a discount. The study found that when a free product is paired with an expensive product, consumers assume the free item is worth more than if it were offered at a discounted price. Instead of lowering your prices, change your marketing campaign to accentuate what makes your business different and better than your competitors.