28% of B2B Discounts Are Totally Unnecessary!

Sales managers, directors, VP’s and executives! You’ll be interested in this. I recently reviewed a lengthy study on B2B discounting by Sales Surveys Inc. that included post-purchase surveys to C-level executives involved in $50,000 and up purchases and in one section of the survey they asked a fascinating question. They asked buyers if they received any discounts AFTER the final vendor had been internally agreed upon or selected but not yet publicly announced. The results were shocking to the analysts. 28% of the respondents answered yes. Properly interpreted that means on average, at minimum, 28% of all B2B discounts are entirely unnecessary to “close sales.” Something I’ve been preaching for 18 years… But there’s a catch. Only a salesperson equipped with sales-specific negotiation skills and knowledge would know the difference, would know HOW to avoid unnecessary discounts and unwarranted price or contract concessions. For the untrained seller, discounting becomes a substitute for selling and frequently becomes synonymous with closing. Which is, of course, a mistake. A mistake that leads to chronic discounting habits and an epidemic of salespeople who discount too much, too soon and too often.
Surveys from the same report, but on the sales side of the equation, asked salespeople about their background, experience, training, etc. When asked if they had ever received sales-specific negotiation training, 94% of the respondents answered NO. Basically, 9 in 10 B2B sellers have never been trained in Sales-Side or Sales-Specific Negotiation. That’s like sending soldiers into combat without a weapon. Or baseball players to the plate without a bat. And of course, if you don’t train em’, you can’t blame em’… Fortunately, the opposite is also true.
At Patrick Henry International we help salespeople win more sales, with fewer discounts and higher margins by reversing the discounting trends and habits of salespeople who discount TOO MUCH, TOO FAST & TOO OFTEN. Our trainings combine classroom instruction with online reinforcement tools that equip sellers with the sales and negotiation skills they need to avoid unnecessary discounts and eliminate unwarranted price and contract concessions. We’ve delivered over 1,200 trainings to over 150,000 sales professionals representing hundreds of businesses WORLDWIDE that, on average, experience a 6.8% increase in annual sales and a 3.1% increase in sales margins. We’re confident we can deliver similar results for your business or sales team.

If you’re interested in learning how Patrick Henry International’s Sales and Negotiation keynotes or trainings can help your business or sales organization win more sales, with fewer discounts and higher margins, call 888-PHI9232 or send an email to daniel@patrickhenryinc.com.