friendlyginge profile picture
friendlyginge profile picture

friendlyginge

Account Executive

Politicker
Valued Contributor
Catalyst
+5

Too much discounting

The more I read on here, the more I'm realizing that I don't agree with my leadership's selling style and how they're training us. This is my first closing role (all outbound) so I have a lot to learn. 

For example, anytime a prospect brings up concerns or starts to go silent, we start offering discounts. I have a deal that was supposed to close this week and they're ghosting, and we are just throwing out discounts without even trying to discuss with the prospect what the hesitations might be. I'm worried it's devaluing our product in their mind, boss told me not to overthink it. Any thoughts on this methodology? 
😎 Sales Skills
👑 Sales Strategy
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goose
Politicker
10
Sales Executive
You throw a discount at me if I don't give you a price objection then I am definitely waiting for more discounts.
friendlyginge
Politicker
1
Account Executive
They say it creates urgency but it seems like we should be doing that during the sales process (what do you lose when you don’t have our product). I’m just worried about learning bad habits so early on
goose
Politicker
2
Sales Executive
It most certainly doesn't unless you build a case (which you can't do while being ghosted).  In many cases you may determine that your price is too high so you communicate to find a meeting point.  If the client commits then you close the deal.  

I don't understand what is going on with your company but if you are meeting with potential clients and they are ghosting you after you agree and send a proposal then I'd suspect you haven't actually agreed to do business at that point.  Sounds like sending a proposal is just your next step but not necessarily theirs.
1nbatopshotfan
Politicker
4
Sales
In the AMA that was hosted Rob mentioned that he’s going to hold any vendor to their discount offers, no matter what the end date is. Something to think about. 

If you think discounts are being applied too liberally, start your proposals 30% higher than list, if that’s possible with your product/service. This way a discount only brings you back down to the pricing you would have offered out of the gate. 
hh456
Celebrated Contributor
2
sales
Never negotiate against yourself. I don’t discount shit. That’s coming out of my paycheck. The product provides enough value as is, we’re confident our pricing is extremely advantageous and worth taking advantage of at its current rate.
CuriousFox
WR Officer
2
🦊
They can take it or leave it. There are other prospects. 
someoneinsales
Tycoon
2
Director of Sales
Think about it if you were the buyer. If you were between a few cars but didn’t have the budget to spend right now or didn’t was a Honda really. That Honda dealership doesn’t hear from you for 2 weeks so they say hey haven’t heard from you, how’s 10% off sound. It’s not going to change your money situation or your mental situation around a Honda. But if that dealership emails you and says, hey - looks like timing is off for a purchase and other priorities have come up. Totally understand. A few things you should look for when you start on the buying journey again are x, y, z. Now they are showing they want to help and partner with you. Maybe you get a loan to take advantage of that or maybe you change you mind set of Honda. Price may motivate some but not always. Lead with value
InQ5WeTrust
Arsonist
2
No marketing, mayo isn't an MQL
This but applied to discounts. 

Also when you immediately discount people just think you're hiding flaws and it devalues you against the competition. Me no likely. 
LordBusiness
Politicker
2
Chief Revenue Officer
It really depends on where your company is at from a growth trajectory. If leaderships priority is new client acquisition  - then discounting is irrelevant (they can always be upsold). If the focus is on profitability and margins - then discounting is very important.  As long as pricing drives the goals for the business, that's what matters. 
iAMgr00t
Good Citizen
0
Account Executive
this right here is an underappreciated nugget of wisdom.
iAMgr00t
Good Citizen
0
Account Executive
To your point if the goal is grow grow grow with ability to upsell or increase price later then discounting may be the way to go.
barney2021
Tycoon
1
Account Executive
Definitely devalues the product. I would only use a discount if they have verbally agreed a date and want to proceed. I use a discount if I need to, to anchor them in and close the deal faster. If they are ghosting it’s something else. I would try sending a value add email without asking them to sign.
friendlyginge
Politicker
0
Account Executive
Appreciate the actionable advice. Yeah that was my fear about devaluing it, and for some reason my management thinks it’s the greatest trick of all time.
GrindingSales
Politicker
1
Account Executive
From my experience, price doesn't mask the hesitations you speak of, I've constantly been the lowest price on deals and they have went with competitors due to other variables.  One client chose the higher price because she was emailing an old rep that no longer worked for us and took that as poor communication on our end. 
DungeonsNDemos
Big Shot
1
Rolling 20's all day
Yikes. That's a quick race to the bottom. There are some companies that never offer any discounts. 
Base the sales process on value. If they are quick to give discounts then either pricing is wrong or they aren't trying to demonstrate value. 
My other two thoughts on this are:
1) Depends on the country sometimes: who is the purchaser. In some countries, discounts are just a part of a sale.
2) The D.E.N.N.I.S System - Step one is DEMONSTRATE VALUE
Sheriff
Politicker
1
Sales Trainer
Sounds like you don't have product value. If you let the deal become about just the cost then you've lost and said your product is a budget solution. While it's rare for a deal to go list price, you should only offer discounts if you're getting something in return (guaranteed sign, growth commit, signing sooner, increased # of years, etc). 
mitts2
Politicker
1
Account Executive
Discounting is one of the last levers we pull in our negotiations. We basically never do it unless the client specifically asks for an exact discount with concrete reasoning behind it (budget restraints, etc.)

If the client brings up an objection / concern, dig deeper on what that concern is actually stemming from. You'll be surprised how often those concerns have very little to do with the actual price of the proposal. 

Figure out what the actual allergy is and work from there. If you keep negotiating against your self and offering discounts every step of the way, the client will just continue to ask for more.
happyhunter
Politicker
1
spittin' sunshine
I agree with your worries...you devalue your product every time discounts come into pay. Sure once in a blue moon negotiating a contract or something may require some give, but I don't think that's going to generate repeatable business or a reputable brand. (They're always going to want the discounted rate/price moving forward). 

I used to sell personal training services and I was taught to never discount because it discredits your worth and what you can offer the individual in your expertise and knowledge...I think the same goes for this situation.
Blackwargreymon
Politicker
1
MDR
You throw a discount at me if I don't give you a price objection then I am definitely waiting for more discounts.
Error32
Politicker
0
ISR
Another pro tip - you can see who follows your company on LI, and can filter your searches that way. Makes it much easier to find people who used your tool in a past life.
Clashingsoulsspell
Politicker
0
ISR
If no - quick blurb about what their old company uses you for exactly and then pivot that into your value prop for their current role and current company

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