INKED

3The Devil Is Discounting: The Case for Improving Sales Negotiation Skills

Sales professionals have been taught to sell value, not price, ad nauseam. I have no doubt that the phrases “sell value” and “demonstrate value” have been drilled into you by leaders and trainers.

Demonstrating value by building a business case for how you and your company will deliver measurable business outcomes is crucial for both competitive differentiation and improving your power position at the sales negotiation table.

Along with demonstrating value, helping stakeholders look beyond price to the total cost of ownership (TCO) makes it easier to build apples to apples comparisons in competitive situations.

Still, if we are keeping it real, price matters. It is the ticket into the game. As much as sales trainers are wont to downplay the role that price plays, the sales professionals who are working in the trenches know it matters.

• Price is what buyers will fixate on.
• Price, and the terms and conditions attached to the price, will likely determine how your commission or bonus is calculated for the sale.
• Price, and the terms and conditions attached to the price, directly impacts your company’s profit margin.
• Price is what you will negotiate and agree on before doing business.
• Price is what you are most likely to discount in order to close the deal.

And you will discount. In the real world, you will need to make concessions to get deals done. The problem is that most salespeople are giving away far ...