Back on March 30, John Barrows posted a blog on his site that I’m going to re-post here with some comments. I like the topic John addressed, discounting, and I liked his solution – be in a position where you don’t have to. It’s an answer to the temptation to offer discounts to fatten your sales numbers at the end of a reporting period.
But there is another discounting pressure besides your end-of-period report – winning the individual sales opportunity. It’s coming to a close and you’re sure you’re not in a position to win, so you drop your price and even if you still don’t win, at least you’ve cut into the competition’s profit margin when the customer uses your price to leverage a discount out of them.