28% of B2B Discounts Are Totally Unnecessary

Sales managers, directors, VP’s and executives! You’ll be interested in this. I recently reviewed a lengthy study on B2B discounting by Sales Surveys Inc. that included post-purchase surveys to C-level executives involved in $50,000 and up purchases and in one section of the survey they asked a fascinating question. They asked buyers if they received any discounts AFTER the final vendor had been internally agreed upon or selected but not yet publicly announced. The results were shocking to the analysts. 28% of the respondents answered yes. Properly interpreted that means on average, at minimum, 28% of all B2B discounts are entirely unnecessary to “close sales.” Something I’ve been preaching for 18 years… But there’s a catch. Only a salesperson equipped with sales-specific negotiation skills and knowledge would know the difference, would know HOW to avoid unnecessary discounts and unwarranted price or contract concessions. For the untrained seller, discounting becomes a substitute for selling and frequently becomes synonymous with closing. Which is, of course, a mistake. A mistake that leads to chronic discounting habits and an epidemic of salespeople who discount too much, too soon and too often.