st sell business improvement, not products or services. That means differentiating yourself from your competition in the unique value you, your products and services, and your company can provide toward your customer achieving their corporate, divisional, business unit, department, or government agency goals. Have you transitioned into the mode of creating customer demand by targeting accounts--getting in before they know they have a need, and establishing yourself as a knowledgeable, trusted, and patient advisor? If not, you'll continue to be on thLast minute discounting has become so prevalent that many companies have come to depend on it as their default sales strategy. Employing a go-to-market strategy of being the lowest cost provider is one thing, but dramatic, tactical discounting on every deal will erode your company's margins and leave you digging a deeper and deeper hole in which your company will ultimately bury itself. I don't want to give you the impression that discounting is never appropriate. I can think of three scenarios where it is required:

1. When a company has mispriced their offering. Let's face it. Times have changed. Competition is fierce. And yes, as much as we don't like to admit it, prices and fees have been forced down in some markets. If everyone else is now selling what you sell for $1.00 and you're still selling it, just as you always have, for $2.00 and you can't prove you can deliver a dollar's worth of additional value for the customer, your pricing is too high--way too high. Call it a discount, or call it a price adjustment, in this situation you've got face reality and sell your products at a price the market will bear, or you won't sell very much at all.

2. As a token concession to close the deal. I don't see a problem with "rewarding" a buyer for signing an order within your timeframe, for example. Understand, I would much rather provide other concessions that don't cost my company money and don't educate my customer that whenever I am going to ask them for an order, I am going to give up part of my margin and commission. But I do live in the real world and understand that for my clients, pricing concessions are sometimes required to get the deal signed.

3. When you haven't done an adequate job of selling the unique business value your product or service will provide the customer. My clients will tell you I am never happy in a situation like this, but if you've not done the best selling job, and there is some room for a discount, and you need the deal, discounting may be better than losing the deal on principal.

How do you avoid discounting?

I talk a lot in my book, How Winners Sell, about the fact that to succeed in business to business sales today, you must sell business improvement, not products or services. That means differentiating yourself from your competition in the unique value you, your products and services, and your company can provide toward your customer achieving their corporate, divisional, business unit, department, or government agency goals. Have you transitioned into the mode of creating customer demand by targeting accounts--getting in before they know they have a need, and establishing yourself as a knowledgeable, trusted, and patient advisor? If not, you'll continue to be on th

iced their offering. Let's face it. Times have changed. Competition is fierce. And yes, as much as we don't like to admit it, prices and fees have been forced down in some markets. If everyone else is now selling what you sell for $1.00 and you're still selling it, just as you always have, for $2.00 and you can't prove you can deliver a dollar's worth of additional value for the customer, your pricing is too high--way too high. Call it a discount, or call it a price adjustment, in this situation you've got face reality and sell your products at a price the market will bear, or you won't sell very much at all.

2. As a token concession to close the deal. I don't see a problem with "rewarding" a buyer for signing an order within your timeframe, for example. Understand, I would much rather provide other concessions that don't cost my company money and don't educate my customer that whenever I am going to ask them for an order, I am going to give up part of my margin and commission. But I do live in the real world and understand that for my clients, pricing concessions are sometimes required to get the deal signed.

3. When you haven't done an adequate job of selling the unique business value your product or service will provide the customer. My clients will tell you I am never happy in a situation like this, but if you've not done the best selling job, and there is some room for a discount, and you need the deal, discounting may be better than losing the deal on principal.

How do you avoid discounting?

I talk a lot in my book, How Winners Sell, about the fact that to succeed in business to business sales today, you must sell business improvement, not products or services. That means differentiating yourself from your competition in the unique value you, your products and services, and your company can provide toward your customer achieving their corporate, divisional, business unit, department, or government agency goals. Have you transitioned into the mode of creating customer demand by targeting accounts--getting in before they know they have a need, and establishing yourself as a knowledgeable, trusted, and patient advisor? If not, you'll continue to be on th

rice the market will bear, or you won't sell very much at all.

2. As a token concession to close the deal. I don't see a problem with "rewarding" a buyer for signing an order within your timeframe, for example. Understand, I would much rather provide other concessions that don't cost my company money and don't educate my customer that whenever I am going to ask them for an order, I am going to give up part of my margin and commission. But I do live in the real world and understand that for my clients, pricing concessions are sometimes required to get the deal signed.

3. When you haven't done an adequate job of selling the unique business value your product or service will provide the customer. My clients will tell you I am never happy in a situation like this, but if you've not done the best selling job, and there is some room for a discount, and you need the deal, discounting may be better than losing the deal on principal.

How do you avoid discounting?

I talk a lot in my book, How Winners Sell, about the fact that to succeed in business to business sales today, you must sell business improvement, not products or services. That means differentiating yourself from your competition in the unique value you, your products and services, and your company can provide toward your customer achieving their corporate, divisional, business unit, department, or government agency goals. Have you transitioned into the mode of creating customer demand by targeting accounts--getting in before they know they have a need, and establishing yourself as a knowledgeable, trusted, and patient advisor? If not, you'll continue to be on th

to get the deal signed.

3. When you haven't done an adequate job of selling the unique business value your product or service will provide the customer. My clients will tell you I am never happy in a situation like this, but if you've not done the best selling job, and there is some room for a discount, and you need the deal, discounting may be better than losing the deal on principal.

How do you avoid discounting?

I talk a lot in my book, How Winners Sell, about the fact that to succeed in business to business sales today, you must sell business improvement, not products or services. That means differentiating yourself from your competition in the unique value you, your products and services, and your company can provide toward your customer achieving their corporate, divisional, business unit, department, or government agency goals. Have you transitioned into the mode of creating customer demand by targeting accounts--getting in before they know they have a need, and establishing yourself as a knowledgeable, trusted, and patient advisor? If not, you'll continue to be on th

st sell business improvement, not products or services. That means differentiating yourself from your competition in the unique value you, your products and services, and your company can provide toward your customer achieving their corporate, divisional, business unit, department, or government agency goals. Have you transitioned into the mode of creating customer demand by targeting accounts--getting in before they know they have a need, and establishing yourself as a knowledgeable, trusted, and patient advisor? If not, you'll continue to be on the receiving end of all sorts of one-sided customer demands, mostly taking the form of answering requests for information, doing presentations, demonstrations, fighting the constant battle against having your offering commoditized by the customer, and being on the receiving end of strong demands for discounts. We've been taught over the years to bundle our products and services where possible to provide the customer with a single investment number. That way, we were told, they can't nickel and dime you, and can't slice up your offering, able to say no to pieces they don't want or need. But now times have changed and when you think about it, that's exactly what you want to do.

If you sell products or services that can be componentized, sold in pieces or modules, or in phases, you're potentially in good shape. Scenario You know your competition is going to come in with a substantial discount, as they have before. Your sales effort must include:

•Assuring yourself that the customer is not making a decision solely or primarily on price. This question must be asked again and again of key decision makers.

•Getting agreement from the real buyer that you understand their business objectives and that your offering can help them achieve those objectives. This method does not work unless you are dealing with the real buyer.

•Finding unique areas of additional value (on top of their existing requirements) that you can provide through the capabilities of your product or service offering.

•Management support for potentially selling part of your offering now, and the rest later on rather than selling the whole thing at a discounted price.

In cases where you know your competitors will be discounting, you'll need to offer several investment options to your customer. Alan Weiss, the consultant's consultant, suggests providing three opportunities for them to say yes.

If you offer your prospect three options to buy--let's say for the sake of labels, Platinum, Gold, and Silver--and you've done a good job of selling the business value of your offering--you can avoid having to concede more than a nominal discount. Your plan here should be not to discount, but rather to