Pricing Fuck Ups. Hard-(L)earned pricing lessons from the indie side of business. Ep02. Discounts will close the deal.

“If I discount you, I’ll close you.” Giving your power away.

Family independent business, leading their market and moving into big deals with large, established companies.

Account manager: Negotiations underway. Looks good. No price objections. Value determined. Almost at the finish line…

Boss of indie firm: part of the last conversation to finish up details and be there just in case things go unexpected. However, anxiety wins over.

He rides in on the white horse, and kills it. Not in the way that makes the deal better or breaks it. Gives away a massive discount that wasn’t needed “in order to reassure we didn’t lose the deal.”

Closed the deal AND left money on the table.

Walks out feeling like the hero.

Account manager: “Shit. There goes my commission and got extra compromises.”

The Wrong Approach

Instead of being a support in the conversation, he took over, taking any authority over the AM. (Dick move, don’t be that person).

What would’ve done different if starting over

Ask how far could go into applying a discount.

What didn’t happen

What did happen

Pricing Lesson

If there’s still something to work on, it can be done in different ways than money: priority service, ad-hoc training, special visits, access to more senior staff, etc.

Read this post and more on my Typeshare Social Blog

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