THE 7 DEADLY SINS OF DISCOUNTING

Sales managers, directors, VP’s and executives! Have you ever considered the cost of discounting—the aggregate impact discounting has on your business, sales department or your own personal success as a sales leader? Without calculating the costs of discounts, how can you know whether or not the impact has been positive or negative? The answer to this question depends entirely on the costs of your discounts because even when you win with discounts—there’s still a cost, a trade-off. And for companies experiencing chronic discounting behaviors from their salespeople, or growing discounting trends in general, the costs can be significant. They’re certainly not trivial. All price concessions risk the inadvertent, but nevertheless damaging effects of discounting. The “7 Deadly Sins of Discounting” risk: Diminishing or eroding product value Lowering, weakening or cheapening brand status Establishing a justification or precedent for future discounts Incentivizing, in fact, almost guaranteeing future discount demands by those same clients Jeopardizing client trust in salespeople, products, and prices And, of course, the obvious elephants in the room: Lower margins and… Lower profitability