SalesFitRx BLOG

ARE YOU GIVING AWAY THE FARM WITH YOUR SALES DISCOUNTS?

Horse_Farm_318_shadowA discounted sale is better than no sale…right?

Certainly not always, and most likely not as often as you may think.

A common frustration among leadership above sales teams is that their salespeople give away too many discounts.

They’re giving away profits they could have retained if they were better prepared to respond to the steady stream of requests for discounts they receive from buyers.

Sales trainer, keynote speaker & coach Don Cooper, a.k.a “The Sales Heretic” (@doncooper), recently took on this issue head-on with a very useful blog post titled, Nine Reasons Salespeople Discount When They Shouldn’t.”

Cooper gets it right when he writes:

Buyers will never stop asking for discounts, for the simple reason that it’s in their best interest to. Salespeople need good reasons to be able to say no.

The post goes into the most common reasons why sales professionals give discounts when they really shouldn’t do so. Copper explains each one of them convincingly, and I agree these are the typical reasons why discounts are given.

A few of them include:

  • Fear of losing the sale
  • “Everybody does it.”
  • Unable to articulate the value

It’s the final reason, #9, that really sums up what’s needed at a foundational level. Addressing this issue with this one solution takes care of the other 8 reasons why discounts are too often given.

You’ll need to read Cooper’s post to find out what that ninth reason is.

With all of this said, are there times when discounts can or should be given? Yes, those situations certainly do exist. But, over time we gain experience and understand better how those moments are fewer and further between than we once thought.

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QUESTION ::: Can you think of a time when you gave a customer a discount when you really shouldn’t have done so?What was that situation and why don’t you believe a discount was the right call?

Let’s talk about it…

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