Why Discounting Too Early Can Damage Sales Credibility
In the competitive markets of Australia and New Zealand, sales teams often face pressure to close deals quickly. One common mistake is offering discounts too early in the negotiation. While it may seem like a shortcut to winning the customer, early discounting often backfires—eroding both margins and credibility.
Why Salespeople Discount Early
There are a few reasons salespeople resort to discounts at the first sign of resistance:
Fear of losing the deal to a competitor.
Lack of confidence in articulating value.
Misunderstanding the customer’s true objections.
Pressure to hit targets within short timeframes.
While understandable, these habits can undermine the sales process and set damaging precedents.
The Risks of Discounting Too Soon
Loss of credibility. If you discount before exploring the customer’s needs, it signals that your initial price wasn’t genuine or justified. This erodes trust and positions you as less professional.
Weakened value perception. Customers may assume the product or service was overpriced to begin with. Instead of seeing value, they focus on cost.
Price-driven relationships. Early discounting sets the tone for future interactions. Customers trained to expect discounts will push harder each time, reducing profitability.
Reduced negotiation leverage. Once a discount is on the table, it’s difficult to step back. Salespeople lose the ability to trade concessions for value-added commitments.
Margin erosion. A small reduction repeated across deals adds up quickly, impacting revenue growth and long-term sustainability.
A Better Approach to Negotiation
Instead of defaulting to discounts, sales teams in ANZ can adopt strategies that build credibility and maintain margins:
Lead with value. Clearly articulate how your solution saves time, reduces risk, or increases revenue. Price becomes easier to defend when tied to outcomes.
Uncover the real objection. Often, resistance isn’t about price—it’s about timing, trust, or fit. Ask questions before offering concessions.
Use conditional concessions. If a discount is truly necessary, link it to something of value for your business (e.g. longer contract terms, case study rights, or upfront payment).
Build confidence. Training and role-play help salespeople hold their ground and negotiate with authority.
Anchor properly. Present pricing with confidence, explaining how it reflects the value delivered rather than inviting negotiation immediately.
The ROI of Strong Negotiation
Sales teams that resist the urge to discount early close deals at healthier margins, retain more credibility, and create stronger customer relationships. Customers respect suppliers who stand behind their value, especially in the B2B space where trust and expertise matter as much as cost.
At Climb Business Consulting, we coach sales teams across Australia and New Zealand to negotiate with confidence—helping them shift from reactive discounting to value-led selling.
Final Word
Discounting may win a deal in the short term, but it can cost credibility, margins, and customer trust in the long run. By holding firm on value and negotiating strategically, ANZ businesses can create stronger, more sustainable sales outcomes.
