Sales Training Tip #301: What is Low Price Costing You?

You can win on price, but doing so will cost you a loss in profit.

This point is hard to grasp for people who are struggling to keep their head above water. Yet, no matter how tempting it is to cut your price to close a deal, you are ultimately destroying your short-term and long-term profit margin. The majority of time when you cut your price, you are still going to deliver to the customer what they expected, but you’ll be doing it in a way that can only mean a cut in your profit.

The argument I hear for this approach is that a sale at a lower price is better than no sale at all. To that I respond, “No!” The reduction in profit occurs not just for the sale at hand, but for every future sale. The customer’s expectation is now that they will always receive the lower price. What is even more damaging is how this wrecks your sales model. Once you are willing to go forward with a discounted price, you will be more likely to do this time and time again. Before you know it, every sale you make will be at the new lower price. Doing this almost immediately negates the value you bring.

As a salesperson, your job is to help the customer see and understand the full value of what you provide them. Anything less than that is merely cheapening your skill set. I could go on and on with this topic, because I am very passionate about it. I know from my own experience the temptation to discount a price can be very alluring. In my business, I know I have lost customers because I have not been willing to discount. However, at the same time, I have picked up business because of my assertive stance. My sales model allows the customer to see and understand the full value of what they receive from me. When they comprehend this, they are willing and eager to do business with me.

As for the customers I have lost because I wouldn’t discount a price, I always strive to remember that if I would have offered a lower price, that would quickly have become the customer’s expectation every time. Just like you, I do not need more low-profit customers.

Interested in reading more on this topic? Visit my resource section on my website, where I have articles on the effects of price discounting.

Share the Post:

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts

Downloadable Sales Resources

14 Things Great Salespeople Do (That Average Salespeople Only Think About)

A Mind for Sales: for salespeople feeling stressed out, burned out, and bummed out. If you’re a sales professional, this book is written just for you. Get your mind right and close more deals with this new business development book.

Subscribe Now

Subscibe to The Sales Hunter Email list to get the latest posts and exclusive sales content right in your inbox.

The Sales Hunter Podcast

The Sales Hunter Podcast features Mark Hunter and top sales leaders, delivering actionable insights to help you become the salesperson you’re meant to be. This show isn’t just for entertainment—it’s designed to empower you with strategies to turn prospects into profits. Subscribe, leave a review, and start selling with confidence!

The Sales Hunter University

The Sales Hunter University offers top-tier sales training available in real-time or on-demand, accessible on any device. Named a Top 10 Sales Development Program in 2022, it’s perfect for sales teams, managers, and driven individuals. Each course is expertly designed by Mark Hunter to deliver the results you need.

Sales Logic Podcast

Ready to amplify your sales impact?

Hosted by sales experts Mark Hunter and Meridith Elliott Powell, Sales Logic answers today’s toughest selling questions with a logic that will help you win more deals and make more money.

When you sell with confidence and integrity, uncertainty becomes your competitive advantage and the sale becomes logical.

The Ultimate Email Prospecting Guide - Mark "The Sales Hunter" Hunter

Download the Ultimate Email Prospecting Guide today!

Enter your information and we’ll immediately send you our most popular download, and add you to our weekly Sales Tip newsletter.