I'm thinking about implementing a "no discounts" policy for my teams. Should I expect backlash? How have others handled this?
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Director of Corporate Development6 months ago
You will almost certainly get backlash. As Randi-Sue points out, the "why" behind it is important to understand. In many cases it's important to be able to show your prospect/client that you're moving, even if only symbolically, on the price. But of course without knowing your product, your market, and your pricing strategy I don't want to get too prescriptive about should/should not.The key is to get your team on board. If possible, one thing I've had success with is implementing bands. Allowing e.g. 5% up to 15% (again depending on product, market, strategy) in rep's authority goes a long way to softening the restrictiveness while keeping discounting in reasonable boundaries.
Director of Sales in IT Services6 months ago
Yes, you will receive backlash. Be prepared with how they can overcome their objections. Starting with "why there is a no discounts policy" and what is a better option.
Director of Sales Enablement in Telecommunication6 months ago
I remember when I was in high tech sales that I didn't give discounts beyond 5%, but we also had a long list of "gives," that were not a discount but valuable to the customer. You might consider giving an empowerment guide to your team for trades other than price. Options could include- Extended warranty or support, longer billing cycle, free training, stocking of replacements, installation support, a free one for training or support, and other items like those.VP of Sales in Software6 months ago
Weak salespeople always give discounts to win the deal. That's why customers keep asking for it. The deal should always be in balance. So, if the customer wants a discount, I want something in return such as the PO until a specific date, fast payment, or something else that is of value to me.
A "no discounts" policy will definitely set a benchmark for the team and that will change their behavior.
Exceptions can be made if there is a good reason and if the deal is still in balance.
Director of Sales in IT Services6 months ago
what are most CEO of mid-size MSP in the united states most worried about when it comes to new sales and growth?
Why is your team discounting?
Is it because they couldn’t build/articulate value and impact to customer’s business?
What is your competitive landscape? Is there enough differentiation from your prospective buyers point?
There are other considerations but I want to understand the why so I know how to communicate change.