Cutting prices or putting things on sale is not sustainable business strategy. The other side of it is that you can't cut enough costs to save your way to prosperity.

The quote by Howard Schultz emphasizes that cutting prices or offering constant sales is not a long-term solution for building a successful business strategy. While temporary discounts can boost short-term revenue, they often erode profit margins and can damage the perceived value of a product or brand. Schultz warns that relying solely on price reductions is unsustainable because it does not address the root causes of business growth or profitability.

He also notes that cutting costs excessively is equally ineffective, saying "you can't save your way to prosperity." This means that focusing exclusively on expense reduction can harm product quality, employee morale, and innovation. While cost control is important, long-term success comes from creating value for customers, building strong brand loyalty, and investing in areas that drive growth.

The origin of the quote stems from Schultz's experience as the CEO of Starbucks, where he focused on building a premium coffee brand rather than competing on price. Schultz believed that Starbucks' success came from delivering a unique customer experience, maintaining product quality, and investing in employees, rather than slashing prices or cutting corners to increase short-term profits.

Ultimately, Schultz’s quote is a reminder that sustainable business growth comes from strategy, innovation, and customer value—not from temporary fixes like discounts or relentless cost-cutting. Companies must focus on building a strong brand and delivering lasting benefits to customers if they want to achieve true prosperity.