When to offer discounts

Approaches to discounting

If not managed carefully, discounting can become a big margin leak. Offering up a discount too eagerly or quickly can devalue your offering and send the message to your buyer that your fees are soft.

Especially applicable for service-based businesses, there are two main approaches for using discounting to close the sale without eroding the perception of value:

• Reduce the scope alongside the price
• Secure an alternative benefit—a quid pro quo if you will.
  Ask for full upfront payment or commit to a longer-term arrangement.

Whichever approach you choose, being prepared for how you’ll respond to discounting requests and knowing your walkaway point will seriously boost your confidence in handling push-backs on price.