7 Reasons Why Salespeople Cut Their Price

By Paul Reilly

According to our research, over 70 percent of salespeople will cut their price if the buyer asks for a discount. It’s no wonder that buyers will ask for discounts. Experience has conditioned buyers to request discounts.


1. Because they can


In a recent seminar, a group of managers were discussing their discounting levels. One manager explained that their salespeople could discount up to 50 percent off list price without management approval. I then asked the manager, “What is the most common discount percentage your salespeople give?” He shrugged and said “50 percent.”


2. Mixed management signals


To be a value-added organization, management must have the courage to hold the line on price. Salespeople are guided by the management team’s action more than their words.

3. Lack of skills


Buyers will try to commoditize your solution and steer the conversation toward price. It’s difficult to sell value if you’re only talking price. Salespeople must preemptively take control of the sales conversation and guide it down a path of value. When the buyer focuses too heavily on price, acknowledge price, but change the conversation to total cost or value.

4. Lack of conviction



When presenting your value-added solution, focus on the impact of your solution, not the utility. Utility is what your product does. Impact is how your solution affects the buyer. Impact is more compelling than utility.


5. Fear

Those who fear losing the sale and succumb to this fear will cut the price. Fear is the most powerful pressure point. Buyers know that salespeople fear losing the business. Buyers make salespeople feel this pressure by saying, “I can get this cheaper online,” or, “This price seems high. I will have to send this out to bid.” In any negotiation, whoever feels the most pressure, will make the most concessions.

When salespeople feel more pressure, they discount. When buyers feel more pressure, price is less of an issue. If the buyer is in a hurry to buy something, price is less of an issue. If you are the only supplier that has the product they need, price is less of an issue. Experienced buyers do a better job of concealing these pressure points, but they are still present. The next time a buyer requests a discount, ask yourself, “What pressure is the buyer experiencing to purchase our solution?”

6. Guilt

Some salespeople feel guilty charging higher prices than the competition charges. These salespeople may not see themselves paying that much for a product and feel bad charging customers those prices. Guilt happens when salespeople are too close to a customer. These salespeople haven’t created enough professional distance to have the tough conversations.

7. Bad attitude

Attitude drives behavior. If salespeople embrace a negative attitude about price, they’re more likely to cut their price. Some salespeople will tell themselves, “Price is the only thing that sells in our industry,” or, “I sell a commodity and we have to match the competition.” This negative self-talk influences selling behavior. Flush these thoughts from your mind. Embrace a positive attitude. Emphasize the unique aspects of your solution and present the impact on the buyer’s business.


The number one reason buyers object on price is because of a perceived lack of equity. The buyer doesn’t believe your solution is worth what they have to sacrifice to attain it. But rather than decreasing your price, find a way to increase your value. Price only becomes an issue in the absence of value.
