Impact Pricing Podcast

#450: Pricing Table Topics: 5 of Diamonds – Give Salespeople Discount Authority

This one is the 5 of Diamonds from the Selling Value card deck. 

We typically give our salespeople some level of discount authority. And the reason we do that is, let’s say they walked in, and they asked the factory, or headquarters, ‘Hey, could I have a 5% discount?’ And we always say yes to that. Then all we’ve done is slowed down the sales process. 

Instead, we give them some level of discount authority. Knowing that, you know, if you come in for 5% or less, I’m going to give it to you anyway. So, you just have permission to go give 5% or less. The problem, of course, is that salespeople typically give the max that they’re allowed to give. 

“Discounting price is one of those levers that they’re going to pull because it’s easy.”

– Mark Stiving

There’s all these different levers that they could pull. They could sell value, and they can discount price. And discounting price is one of those levers that they’re going to pull because it’s easy. See how easy it is for me to discount the 5% and it doesn’t hit my commission that much. So, it’s okay for me to give that 5% discount. 

What we want to do as a company is sit back and say, what are the right levels of discount authority? What should I let my salesperson discount to? What should I let my sales managers discount to, my sales directors discount to? There are different levels, and we want them to be incented to discount as little as possible.

We hope you enjoyed this example of Pricing Table Topics. What you just heard was done without a script. If you want to get better at speaking about pricing and value, grab a deck of our cards, pick a card, read the saying, then talk for one to two minutes about what that card says. You’ll become a better speaker and expert.

If you have any questions or feedback, please email me, [email protected]

Now, go make an impact.

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Tags: Accelerate Your Subscription Business, ask a pricing expert, pricing metrics, pricing strategy

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