Are sales (discounts) an investment or a loss?
Suppose that the wholesale cost of the product is 40USD, and the maximum price that most customers are prepared to pay for the product is 50USD, but a few customers are prepared to pay 100USD for the product. Suppose also that the few customers who are prepared to pay more for the product will put less effort into waiting for discounts. Suppose also that some customers are more likely to buy a 50USD product if it previously costed 100USD than if it had always costed 50USD. 

What would be the optimal pricing strategy in this circumstance?