The speaker (Henning Schwinum) argues against discounting in sales, giving six numbered psychological reasons why offering discounts harms long-term value and relationships. Key claims: discounts undermine perceived product value and salesperson credibility, invite escalating concessions, create permanent price expectations, trivialize communicated value, raise doubts about honesty, and shift conversations to price rather than needs/solutions. The clip ends with a call-to-action to consult an experienced sales leader.
Chapters
Those that have worked with me have heard this over and over again. Do not discount because discounting reduces the value of the product in the eye of your customer. And that is terrible news, especially mid and long term. And even if you are successful in closing the deal by offering a discount, the psychology that is at work when you do has detrimental effects. Let me share six of those with you. Number one. When you're discounting, you're saying to your customer that you don't believe enough in what you're selling that you think you can sell it for the standard price. As soon as you offer a discount, your prospect immediately loses confidence in you and sees you don't stand behind what you're trying wholeheartedly to sell to them. Number two, when discounting, you're showing your cards and proving that you have a weak hand. Offering the first discount enters you into a downward spiral. Now that the client sees your weakness, they will ask for more and more and more concessions. 3. When you offer a discount, there is no going back. As soon as you lower your price, your customer will expect to see the same thing next time. Or they'll just hold out until you offer another special. And most likely they won't purchase without it. Don't fall for the trap of one time discount or introductory price. You will be stuck with it forever. 4. Buyers buy based on value they perceived. You haven't done your job as a salesperson. If you haven't demonstrated to your prospect that what you're selling can genuinely add value. If you go in with a discount, you're trashing that value and you're throwing it out the window. Number five. While your prospect might be thrilled to get a lower price, in the back of their mind they're also saying wait. But they've already told me this is the very best they could do. And now they're offering me a discount. What else haven't they been honest about? You're stirring up questions that should never be there in the first place. Number six. And finally, the last thing you want in sales is to have the conversation focused on price. And that's just what happens when you offer a discount. When the conversation is focused on price, it doesn't give you room to talk about the other important things like needs, challenges, solutions. Talk to us to find out how an experienced sales leader can help guide your team through those conversations.
