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When an executive unexpectedly offers a last-minute discount, it signals desperation and inconsistency. The buyer, instead of closing, starts wondering what other concessions they could get, slowing down the deal and undermining the sales rep's credibility.

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Before agreeing to any discount, get the prospect to commit to the entire closing process, including legal review timelines, access to power, and a final signature date. This prevents deal slippage and gives you the leverage to rescind the discount if they fail to meet the agreed-upon timeline, as the concession was conditional.

Offering a time-based discount signals to smart buyers that your timing is more important than theirs. This incentivizes them to delay until the deadline to maximize their leverage, which is the opposite of the intended effect of accelerating the deal.

When you easily concede on seemingly small items like payment terms, you inadvertently tell the customer that your pricing isn't firm. This encourages them to push for more discounts, slowing down the deal. Instead, trade every concession for something of value to your business.

Offering discounts, especially at quarter-end, trains buyers to delay purchasing in anticipation of better terms. Instead, frame discounts as a reward for committing to a specific timeline, which provides your business with valuable forecasting accuracy and gives the customer skin in the game.

Instead of offering a fake, expiring discount to create urgency, frame it as a payment for predictability. Tell the prospect you will pay them a discount in exchange for mutually aligning on a specific close date, which helps you forecast accurately. This turns a sales tactic into a valuable business exchange.

When a salesperson quickly gives in on seemingly small terms like payment schedules, they inadvertently tell the buyer that their pricing model is soft and open to negotiation. This encourages the buyer to ask for more concessions, prolonging the deal.

Discounts are effective for closing customers who are already trying to solve a problem. But applying these tactics to prospects without genuine pull manufactures a bad deal, leading to poor implementation and churn. It's a tool for execution, not demand creation.

Contrary to popular belief, time-based discounts often slow down sales cycles. They signal to savvy buyers that your price is flexible, incentivizing them to delay their purchase until the end of a reporting period when they know their leverage will be at its peak.

Offering discounts early in the quarter doesn't accelerate deals. It signals that better terms will be available later, incentivizing buyers to delay until the last possible minute to maximize their leverage, thus slowing the sales cycle.

Offering an unprompted discount is described as the "most pathetic thing in sales." It immediately transforms you from a trusted advisor into a transactional salesperson, erodes all built-up trust, and signals that your initial price was inflated.

Unsolicited Executive Discounts Erode Buyer Trust and Can Stall Deals | RiffOn