A Smart Bear · Jason Cohen
articleprincipleDiscount gambit
25 June 2023Profit
Source excerpt
About A Smart BearDiscounting is the typical sales technique, but refusing to discount can lead to a much better business, even in the Enterprise.
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Apollo layer
What a founder can learn
Founder takeaway
Treat pricing discipline as a business-design choice, not just a sales negotiation tactic. Before offering discounts—even to enterprise buyers—consider whether holding firm could protect margins, reinforce positioning, and attract customers who value the product at its intended price.
Why it matters
Routine discounting can weaken unit economics and teach buyers to challenge every price. A clear no-discount policy—or strict conditions for exceptions—can preserve captured value and create a more durable business.
Put it to work
Review your last five discount requests: what value, scope, or commitment could you negotiate instead of lowering the price?
Private notes