Discounting usually starts with good intentions: close the deal, hit the quarter, keep the client happy. Over time it becomes a habit, margins shrink, and buyers learn that the first price is never the real price.
Discounts are often a value problem
When a buyer pushes on price, it often means they don't fully see the value. Go back to discovery. Confirm the problem, its cost, and what success is worth to them. A buyer who sees a clear return negotiates differently.
Set guardrails
- Define a discount range sellers can offer without approval.
- Require a reason and a trade for anything beyond it, such as a longer term, faster signature, or a case study.
- Track discount rate by seller and by deal size every month.
Trade, don't give
Never lower price without getting something in return. Trades protect margin and signal that your price reflects real value, not an opening bid.
Watch the comp plan
If sellers are paid only on bookings, discounting costs them little. Tying part of compensation to margin changes behavior quickly.
We start by understanding where revenue is stuck, then scope the work to fit.
