We all know the famous saying, “you can’t teach an old dog new tricks”. This can be applied to the way many organizations have trained their Buyers to buy, particularly in Q4. Discounts become the primary weapon of sales reps to ensure they close those last few deals to get to their number. But for Finance, this is often the Achilles Heel of profitability metrics.
Download the Give Get List Guidance Tool to implement this tool immediately for your sales team to better negotiate with buyers, and to allow your reps to methodically think through different levers that can be pulled during negotiations outside of price.
You Are Not Alone
If you are realizing you have discounting malpractice within your organization, you are not alone. Just like when you bring your Canine to the local park, it’s unlikely they are the only one not listening to the orders given. In a study conducted by Harvard Business Review, 85% of respondents believed they could improve upon their pricing decisions.
So, here comes the big question. How do you keep sales motivated to hit their numbers without becoming overly-reliant on discounting, and thus training your Buyers the bad behavior of expecting a hefty discount at year-end? With this many organizations suffering from discounting, is this a losing battle, or is there a solution? See below for three tips to ease the pain of end-of-year discounting.
Three Tips to Fight Bad Discounting Behavior
- Sales Enablement Training
Start by launching training on negotiation tactics. Many times there is something that can be given to the customer to help close the deal that is not centered around price. Especially if the sales rep has been building consensus with the Buying Decision Team (BDT) before price comes up in the sales process.
- Creating a Deal Desk
Need help setting up an effective Deal Desk? Review a recent SBI blog on upgrading your Deal Desk.
- Implementing a Configure, Price and Quote Solution
While this may be the most effective solution, there is a time element associated here. Typical implementation of a best-in-class CPQ solution takes between 6-12 months. However, if you are playing the long game and already planning for Q4 2019, now is the time to act.
Don’t allow your sales organization to continue teaching your Buyers poor behaviors and engrain the expectation of a lofty Q4 discount. Begin adopting these three best practices to reach your financial profitability objectives.
How do you get started with these three tips? SBI has given you a head start by providing a tool for sales to implement immediately around negotiating with Buyers. This Give-Get List Guidance Tool allows reps to methodically think through different levers that can be pulled during negotiations outside of price.
Need a Pricing Strategy overhaul? Schedule a working session at SBI’s Studio with our Global Pricing Practice Leader, Jacqueline “Jacqui” Davis. Jacqui has over 20 years of experience developing go-to-market strategies and leading high-performing teams.
Located in Dallas, TX, our facility offers state-of-the-art meeting rooms, lounge, full-service bar, and a studio used to tape our TV shows. SBI provides the location and facilitators, all at a compelling price point.
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