Feb 6, 2018
To Discount or Not to Discount - What's the Risk?
Discounting is a four-letter word. If you reduce your price, are
you going to decrease the value of what you deliver, or decrease
the impact that you will have on the customer?
Think of some of the organizations you purchase goods or
services from, but will never pay full price. Think of any
conversation you have had with a customer where price has become
the focal point.
Mike Conner is back this week, and we briefly discuss what he
has been up to, and dive into the details around the risks of
We hope you enjoy the discussion, and look forward to your
feedback on Twitter, LinkedIn, and Facebook.
- What are some of the things
that have popped up on LinkedIn that are interesting?
- How should you approach discounts?
- What’s the difference between
selling value and taking a discounting approach?
- What advice do you have for a
rep who knows their customer is looking for the discount, but your
sales manager is saying you should not?
- What about competitive
situations? How does discounting apply?
- How do you help a client move
away from a discounting expectation to something that is more in
line with how your other customers purchase your
- What are some other approaches
you can take, and different trades you can bring to the
- Lesson learned - early
career/mid-career rep - realizes, they may be doing their client a
- When the focus changes to
discounts, value gets lost in the equation
- The focus should be on
delivering value to people, not creating new
will not make decisions just because they like you.
- As a buyer - we will ask for
discounts until we feel like we have gotten to the
- Discounting is a really weak
- The value you deliver should go
far beyond pricing.
- Look at your ability to
validate that the product will work, will solve the customer's
problem, will do what you said it would do as part of the value you
- Have value attached to
everything - make sure the client understands what is
- As an example, when working
with a product that includes setup fees. It is necessary to
take a look at what’s
included, identify the things that are unnecessary, challenge the
need, and get fair value for the services delivered. Don’t
let these things be arbitrary.
- Our approach - we will give you
the most value in the first proposal we will deliver.
- Sales, unfortunately, drives a
lot of the negative behavior. We get trapped in a race to the
bottom, the discounting approach.
- In our experience, the initial
discount is a gateway to the discussion for further
- Know your competition,
understand their value proposition, the value
they deliver, and that you deliver. Don’t get
caught in the trap of chasing them down the discount rabbit
- Once you have established the
behavior it is difficult to reset expectations.
- Have confidence in your pricing
& don’t take the bait.
- We know it is hard, especially
at the end of the quarter, end of the year.
- Sales managers - should not
reinforce bad behavior.
Call to Action
- What's your approach to discounting?
We are actively increasing our engagement on Twitter, LinkedIn,
and Facebook, and look forward to hearing from you. Please
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