I think discounting can actually do your reputation more harm than good in some cases, and I would agree with others on here who say there isn't any appreciation.
A few years ago a large charitable organization dedicated to cancer research came to me for a quote. I discounted my rates approximately 50% off for them. I personally worked that event that year, and ended up getting some sort of regional contract with a rep to do more of these types of events. At that point it worked out well for me, with the exception of a few things:
1) Scope creep - client signed a contract for a Dj service, and ended up needing all sorts of sound reinforcement for performers, extra microphones etc. which was previously not disclosed or in the contract. As an act of goodwill, since I carry many of these items, I provided them and casually mentioned that I need to know if these types of things will be needed in the future.
2) Lack of respect for equipment - I did not appreciate one of the volunteers trying to use my $600+ wireless mics for a game of "chubby bunny" as people would spit marshmallows into them, or the fact if I turned my back, they would hand my mics over to whoever (extremely disabled people who could barely hold on to the mic, toddlers, 16 year old punks who think it is cool to 'drop the mic' as seen on TV etc.). Additionally, during a big storm when water was blowing into my tent, volunteers were getting pissy with me for trying to protect my equipment rather than servicing their needs immediately. If I looked away for a second, volunteers would be trying to plug their phones into my board.
3) Clear contract violations - I shouldn't need to carry and run hundreds of feet of extension cord when my contract says 15-20'. Oh...and I got to tape it all down too.
4) Burnout - My body can't handle up all nighters the way it used to be able to.
The next year, they renewed their contract, and their largest event was moved to the first Saturday in June - one of my peak wedding dates. I personally kicked off the event, brought a second person with me who did great, and ducked out to go to my wedding. That year I ended up getting into verbal altercation with a volunteer. He had a box van which was illegally parked and blocking our trucks - posing the threat of making me late for my next event. He refused to move it. When he talked to me with clear disrespect, I stated he had his choice of me calling the police or a towing company. My response to him did not go over well. Additionally, I bought/brought cheaper mics to the event. The volunteers complained about the range and some of the static and dropout.
The next year, they renewed again. Nothing noteworthy happened except, I think I lost an amplifier or two to heat. Some of the leadership and volunteers began to change over. I wised up to some of the scope creep by this point and bought a snake, some DI boxes etc. and ran them into a limiter so people could just plug in whatever they please. At some point after this event, I was asked to attend some of the committee meetings which I could not make as it conflicted with other obligations I have.
The next year they renewed again - on my busiest day of the year. My assistant Dj I had brought with me years past was unable to make it. I formatted a playlist in Mixmeister and sent one of my photobooth operators who had previously run sound for bands to work the event when I left in the afternoon. I figured it was straightforward enough - just adjust the channels for the mic, snake and computer as needed and do what you're told by the volunteers. One of my Djs who was working a graduation party would relieve him when he gets off. Big mistake. While noone complained directly to me, I heard through the grapevine that people were walking in front of speakers with microphones etc. and the feedback and lack of polished quality was a poor reflection on my company since noone was there "coaching" people and actively coordinating. A singer/performer showed up without the proper adapters and nothing could be done to patch them in (they were supposed to call/email me in advance, or arrive early in afternoon for a sound check, or supply anything needed to tap into the snake which I painfully documented what was needed). Last, allegedly, some of the cheaper mics also went out causing my sound operator to become short with the volunteers who was riding him. I heard this all from the Dj who relieved him - noone complained directly to me, even when I followed up. I didn't make any money off the main event that year between labor and equipment costs. Proceeding in this condition was not sustainable for my company at that price point and was potentially doing more harm than good.
This year they didn't renew - they didn't even come to me for a quote. I saw an inquiry on the event's Facebook page looking for a Dj. Their entertainment committee changed over - I no longer know who is on it. I know they reached out to a competitor and were going to book but it did not go through. They ended up using someone recommended on the Facebook page. The person they used just started their "Dj company" this year and "specializes" in this particular event - doesn;t appear to do weddings or anything else. I briefly stopped up at that event and I am pretty sure it was one of the previous years' volunteers who thought she could do better with a laptop, 2 Peavey powered speakers and a Behringer sub sitting on the floor in the tent. If it's about the cause, and she's going to be there anyway, then I suppose it makes sense. The minute she has a speaker go out or a mic that isn't working I wonder if she has extra out in her minivan, if it is sustainable for her to just go out and replace whatever is broken on the fly, or if they will be calling myself or another Dj company in the area for a bailout in events to come.
Throughout my four year run with this organization, a lot of people complimented the music formatting when I was personally running it. Some of the veteran performers appreciated the improvements and accommodations I had made for them (the snake/dis etc). We gave out quite a few cards, yet, these events generated 0 quality leads. The people that called in were looking for low cost things for fund raisers, graduation parties etc. I falsely thought there was value in the publicity. Not having that contract stung a little bit this year, as this was an extremely slow summer, but I couldn't go on doing this at the rates I was charging.