An eBook by
WHY DISCOUNTING
IS K ILLING YOUR
BUSINESS
Discounting as a pricing tactic is as old as the sales
profession itself Your ever-demanding customers are
after a good deal and your salespeople are gagging for
a quick win Offering specially-reduced prices can be
powerful therersquos no denying it Wersquove all seen the hordes
of people racing to supermarkets on Black Friday elbows
firmly engaged and ready to holler at any unsuspecting
fellow shopper that might dare to reach for the same
toaster as them
In reality though discounting is killing your business with
every cent you knock off your list price for a what will be a
very short-lived spike in sales
The wholesale distribution industry is one rife with
competition competition that will likely have the same
product or one very similar to yours on offer In such a
bustling market your customers are all powerful and they
can chip away at your bottom line with very little effort
playing you against your competition in a never-ending
price war So itrsquos not surprising that many wholesale
distributors think the way to see light at the end of the
tunnel is to cut prices to get a deal over the line
Donrsquot wage a price war why discounting is killing your business
1wwwsales-icom
W H Y M A N U FA C T U R E R S A N D
D I S T R I B U TO R S D I S C O U N T
Your boss Your sales director Your finance team More
often than not senior management will dictate pricing and
simply force this onto your sales team and subsequently
your buyers However without any understanding of the
pricing strategy you should be adopting setting a price can
end up being nothing more than a shot in the dark for most
departments of your business
Your sales director will likely look to set the price as high as
possible to generate the most revenue the same goes for
your boss and your finance team
A price too low and yoursquoll be throwing money away Too high
and yoursquoll see a dip in sales volume Itrsquos a tricky game to get
right and should involve a team that know what constitutes
an acceptable price for your customers
Donrsquot wage a price war why discounting is killing your business
2wwwsales-icom
Who dictates your pricing
1 What value will your product or service
bring the buyer
2 Are your customers price sensitive
3 What are you doing differently to your
competition
4 Is your customer willing to pay $XYZ for
your product
Theory suggests that your marketing team should control
and dictate the pricing of your products Letrsquos go back to
your high school Business class Remember the 4Ps that
your teacher probably prattled on about for at least a
couple of lessons These 4Ps of the marketing mix are what
the crayon-wielding creative ninjas live by product place
promotion and PRICE
Your marketing team will always have an ear to the ground
They know your customers inside out your market like the
back of their hand and competitors like their closest friends
A bit of market research here some sneaky competitor
analysis there ndash your marketing team really are in the best
position to dictate your pricing
This doesnrsquot mean that your management team or finance
gurus should be left out altogether but marketing should
have the overarching ability to dictate the price of your
product or service depending upon seasons trends or
competitor activity
When coupled with a smart value positioning and some
really intriguing promotion price can end up being one
factor of many rather than THE deciding factor for your
customers when theyrsquore in the market for your products
Who should dictate your pricing Things to establish before setting a price
5 How much margin do you need to make
selling your product worthwhile
W H Y I S
D I S C O U N T I N G
K I L L I N G YO U R
B U S I N E S S
4wwwsales-icom
Discounting no matter how marginal can and will kill your
business A bold statement we know Wersquore all material
people We like stuff And we like to get said stuff at the best
possible value But good value doesnrsquot always mean the
lowest cost
But when your customer utters the words ldquohow much is itrdquo
your answer as a product salesperson can (sadly) dictate
the future of your deal When followed swiftly by a sharp
intake of breath and ldquowhat can you do on the pricerdquo many
salespeople will ldquosee what they can dordquo and usually offer
some form of discount package shaving dollars off your
margins
Itrsquos killing your business Herersquos why
Donrsquot wage a price war why discounting is killing your business
Discount to the detriment of long term profits
While great for short term sales spikes discounting
will ultimately hit your long-term profits hard
In discounting yoursquore not fostering a long-term
relationship with your customers ndash yoursquore having a
fling with a lsquodeal shopperrsquo who wonrsquot ever call you
back Plus why should the fly by customer pay less
than an existing customer who gives you repeat
business on a regular basis
Yoursquore commoditizing your business
In the wholesale distribution industry intense
competition comes with the territory But
undercutting competitors wonrsquot do you any good
Low value products can in turn lead to a low value
company with customers fixated on price with low
expectations and little to no engagement with
your brand Yoursquod never refer to your products as
mere lsquocommoditiesrsquo so donrsquot start commoditizing
your business with discounts
Raises uncomfortable questions
Say you cut prices by 20 The question on your
customersrsquo lips wonrsquot be ldquoWhere do I signrdquo instead
itrsquoll be ldquoWhat was your mark-up beforehandrdquo
Itrsquos not a question any wholesale distributor ever
wants to be faced with is it If yoursquove got the ability
to slash prices at a momentrsquos notice customers
can become wary about how much profit you
were making before making you unstrustworthy
Customers will bide their time for lower prices
If yoursquove discounted before chances are yoursquoll
consider doing it again for that elusive spike in
your sales volume Your customers are savvy
beings and will wait patiently for you to discount
again Think of Black Friday people bide their
time knowing that a discount is coming soon Your
sales will tail off in periods when yoursquore not offering
discounts and only spike when you cut your prices
Do you want to be a discount brand
Lowering your prices essentially makes you one
Discounting heavily can damage your brand and
sully everything you stand for as a company
Most people value things based on price and
knockdown prices can give your customers the
idea that yoursquore becoming a discount brand
If thatrsquos not what yoursquore aiming to do will your
customers be willing to step up and pay full price
when yoursquore not discounting
More discount = less profit
Imagine your profit margin is 30 If yoursquore offering
a 20 discount your profit margin then becomes
10 As the cost of raw materials continues to rise
along with sharp increases in labor costs can you
really afford to cut your prices In short yoursquoll have
to increase how much you sell to maintain the
same level of revenue Meaning more production
costs more time and a lot more effort
5
Sometimes it can seem like therersquos no alternative but to
offer a discount to secure a sale With the threat of your
competition ready to lure away your customers as soon as
you deny their request for a discount how can businesses
today really say no
Competing effectively means doing more than just offering
a cheaper deal Have competitive prices by all means but
there are things you can be doing to avoid the pitfalls of
discounting and make a difference with your customers
Donrsquot wage a price war why discounting is killing your business
wwwsales-icom
H O W TO AV O I D
T H E P I T FA L L S O F
D I S C O U N T I N G
Increase your product range
A wide product range can encourage your
customers to spend more of their money with
you If yoursquore selling for example nuts and bolts
to your customers broadening your product range
to include washers screws and tools can incite
your customers to spend more money with you A
wider product range makes it easy for them to get
everything they need from you
Think of the likes of Walmart and other traditional
grocery stores They no longer sell just groceries
you can pick up pens clothes TVs and even
garden furniture at most superstores today
Sharpen up your positioning
Make sure you fully understand your buyers What
are their challenges What makes them tick
What are their goals Armed with this knowledge
you can rejig your positioning and offer a product
they canrsquot live without
Make your product a lsquomust haversquo Make it easy
for your customer to get pepped up and excited
about your offering Theyrsquoll be so swept away in the
excitement that the price will be an afterthought
Add value
This ties in nicely with the previous point As a
wholesale distribution salesperson you need to
understand exactly where your companyrsquos offering
fits in with their day-to-day lives How will it change
their lives Will it save them time Money Effort
Knowing precisely what your product can bring to
the table will make those hellish price negotiations
a thing of the past Remember that a lower price
doesnrsquot always mean better value in fact a higher
price is often attributed to superior quality
Let your customers do the talking
Your existing customers are your biggest weapon
when closing a sale Already advocates of your
brand sharing case studies testimonials videos
and references from people already using your
product or service can be a game-changer when
yoursquore selling Hearing how good your offering is
from other users is incredibly powerful
E X A M P L E O F
D I S C O U N T I N G
G O N E W R O N G
Franchisees of the fast-food giant McDonaldrsquos claim that
they are being forced to offer too many discounts Getting
customers through the door and making profitable sales are
two very different things As private investors in McDonaldrsquos
franchises these individuals are reporting huge losses
compared with the same quarter of last year simply by
reducing their prices
While this doesnrsquot directly impact customers itrsquos clear to
see how discounting can negatively affect a companyrsquos
bottom line If companies the size of McDonaldrsquos feel the
pain of discounting whatrsquos to say your wholesale distribution
company wonrsquot feel the same
Instead of discounting look to McDonaldsrsquo famous up-sell
ldquoWould you like fries with thatrdquo This simple question must
have made the company billions over the years is there a
similar question you could be asking
7wwwsales-icom
271
02
08
$15
Restaurants taken part in the discounting scheme
Growth slowed by 02 in the third quarter
They expect a 08 decline in sales in the fourth quarter
Labor costs on average $15 per hour meaning discounting can be difficult
Donrsquot wage a price war why discounting is killing your business
M C D O N A L D rsquo S
E X A M P L E S O F
B R A N D S T H AT
D O N rsquo T D I S C O U N T
9wwwsales-icom
Donrsquot wage a price war why discounting is killing your business
Technology giant Apple has never offered a discount Yet
come iPhone 8 release day you can guarantee people
around the world will be camping overnight to be first in
line to buy one at list price (or even more on eBay when
stock is low) Apple products have become a cult item that
customers are willing to pay for From the experience in
store to aftercare and support Apple doesnrsquot offer discounts
to its customers because they just donrsquot need to
ldquoItrsquos up to us to convince people to maybe spend a little
more for a materially better experience of product And we
think that people will do that if the product is great and if itrsquos
messaged appropriatelyrdquo
- TIM COOK CEO OF APPLE
Apple
Luxury fashion brand Louis Vuitton will never offer a
discount Having faced near bankruptcy in the early 1970s
due to private franchisees marking up prices on their luxury
handbags and luggage and pocketing the difference After
a swift management shakeup Louis Vuitton became a
vertically integrated company that today owns their entire
supply chain from factories to shop floors in department
stores Customers canrsquot purchase Louis Vuitton products
anywhere but official outlets or authorized concessions ndash
making it impossible to discount
ldquoControlling the channel meant you controlled the price
Without a middleman margins are higher offering a
plumper profit cushion during downturns This practice also
confers exclusivity since you can buy a given product only
from an authorized dealer where price is fixedrdquo
- HENRY RECAMIER 1977 OWNER OF LOUIS VUITTON
Louis Vuitton
Business magnate founder of Tesla Space X SolarCity
and Paypal and all round nice guy Elon Musk is one of the
greatest and most humble businessmen of our generation
Musk recently penned a lengthy email to his Tesla team
about the very reasons why they never offer a discount on
their cars Itrsquos worth the read We promise
ldquoThe acid test is that if you canrsquot explain to a customer who
paid full price why another customer didnrsquot without being
embarrassed then it is not rightrdquo
- ELON MUSK FOUNDER OF TESLA (AND OTHERS)
Tesla
10
STATISTICS
wwwsales-icom
Donrsquot wage a price war why discounting is killing your business
67
40
1
8
Offering discounts means poor loyalty and loyal customers spend 67 more than new ones with
repeat purchases
Source wwwinccom
Promotions often have little impact on buyers ndash 40 would have bought an item anyway promotion or no promotion
Source wwwinspectorinsightcom
A 1 pricing discount results in a decrease of 8 in operating profits for the average company
Source McKinsey amp Company
If volumes remained stable a price rise of 1 would an 8 increase in operating profits
Source McKinsey amp Company
A pricing strategy is something thatrsquos often decided without
much thought within many businesses Itrsquos not an easy task
to get right but business owners often fail to anticipate how
quickly profit margins can disappear when they give away
a harmless concession here and there such as 10 off their
usual list price
For a business with a 20 gross margin a 10 discount gives
away 50 of their profits as raw materials and operational
costs remain the same Is a 10 discount going to increase
sales by 50 Probably not
Donrsquot wage a price war why discounting is killing your business
11wwwsales-icom
How discounting eats into profits
Costs
80Costs
80
Profit
20
Discount 10
Profit 10
In short discounting is bad Adding value is good Knowing
your customers inside out is key to providing an experience
that will keep your customers coming back for more and
negating the need to cut your prices just to get that elusive
ldquoyesrdquo
Be more proactive in your sales approach and pre-empt your
customerrsquos next purchasing move Using sales technology
can help you to be more proactive yoursquoll be able to avoid
those awkward discount conversations altogether This kind
of software can help you to get ahead of your competition
before they even have a chance to undercut you and start
a price war Whatrsquos more if yoursquore being more proactive
towards your customers theyrsquoll trust you more and in turn
become more loyal If this is the case even a low price wonrsquot
be effective in securing their business
Some of the most successful companies in history have
never once offered a discount and theyrsquove stayed true to
their morals A quality product that will help improve or
better any aspect of your buyersrsquo lives shouldnrsquot need to be
discounted
12
Donrsquot wage a price war why discounting is killing your business
wwwsales-icom
TO S U M M A R I Z E
ABOUT ldquoIt is a no brainer for distributors and the personal service is outstandingrdquo
sales-i is sales performance software designed to make
every sales call more personal and profitable
sales-i enables sales professionals to clearly identify and
target high quality sales opportunities within their current
customer base Equipped with customer buying behavior
alerts salespeople can make insightful personalized
quick business decisions realizing repeat sales reduced
customer attrition and maximized profit margins as a result
sales-i will change the way you sell Get in touch for a free
online demonstration and judge our software for yourself
tellmemoresales-icom
wwwsales-icom
- Scott Bennett Bennett Auto Supply
ldquoOne call using sales-i yielded a $5000 order from an account that was leaving us for a competitor he felt we did not care sales-i showed him we didrdquo
- Ron Dahlhaus Buy Wise Auto Parts
ldquoWersquove closed off the financial year 58 up on the previous year and attribute this directly to sales-i and their sales performance softwarerdquo
- Larry Sexton Office 360ordm
We are the leader in sales performance for distributors and wholesalers
Donrsquot wage a price war why discounting is killing your business
Discounting as a pricing tactic is as old as the sales
profession itself Your ever-demanding customers are
after a good deal and your salespeople are gagging for
a quick win Offering specially-reduced prices can be
powerful therersquos no denying it Wersquove all seen the hordes
of people racing to supermarkets on Black Friday elbows
firmly engaged and ready to holler at any unsuspecting
fellow shopper that might dare to reach for the same
toaster as them
In reality though discounting is killing your business with
every cent you knock off your list price for a what will be a
very short-lived spike in sales
The wholesale distribution industry is one rife with
competition competition that will likely have the same
product or one very similar to yours on offer In such a
bustling market your customers are all powerful and they
can chip away at your bottom line with very little effort
playing you against your competition in a never-ending
price war So itrsquos not surprising that many wholesale
distributors think the way to see light at the end of the
tunnel is to cut prices to get a deal over the line
Donrsquot wage a price war why discounting is killing your business
1wwwsales-icom
W H Y M A N U FA C T U R E R S A N D
D I S T R I B U TO R S D I S C O U N T
Your boss Your sales director Your finance team More
often than not senior management will dictate pricing and
simply force this onto your sales team and subsequently
your buyers However without any understanding of the
pricing strategy you should be adopting setting a price can
end up being nothing more than a shot in the dark for most
departments of your business
Your sales director will likely look to set the price as high as
possible to generate the most revenue the same goes for
your boss and your finance team
A price too low and yoursquoll be throwing money away Too high
and yoursquoll see a dip in sales volume Itrsquos a tricky game to get
right and should involve a team that know what constitutes
an acceptable price for your customers
Donrsquot wage a price war why discounting is killing your business
2wwwsales-icom
Who dictates your pricing
1 What value will your product or service
bring the buyer
2 Are your customers price sensitive
3 What are you doing differently to your
competition
4 Is your customer willing to pay $XYZ for
your product
Theory suggests that your marketing team should control
and dictate the pricing of your products Letrsquos go back to
your high school Business class Remember the 4Ps that
your teacher probably prattled on about for at least a
couple of lessons These 4Ps of the marketing mix are what
the crayon-wielding creative ninjas live by product place
promotion and PRICE
Your marketing team will always have an ear to the ground
They know your customers inside out your market like the
back of their hand and competitors like their closest friends
A bit of market research here some sneaky competitor
analysis there ndash your marketing team really are in the best
position to dictate your pricing
This doesnrsquot mean that your management team or finance
gurus should be left out altogether but marketing should
have the overarching ability to dictate the price of your
product or service depending upon seasons trends or
competitor activity
When coupled with a smart value positioning and some
really intriguing promotion price can end up being one
factor of many rather than THE deciding factor for your
customers when theyrsquore in the market for your products
Who should dictate your pricing Things to establish before setting a price
5 How much margin do you need to make
selling your product worthwhile
W H Y I S
D I S C O U N T I N G
K I L L I N G YO U R
B U S I N E S S
4wwwsales-icom
Discounting no matter how marginal can and will kill your
business A bold statement we know Wersquore all material
people We like stuff And we like to get said stuff at the best
possible value But good value doesnrsquot always mean the
lowest cost
But when your customer utters the words ldquohow much is itrdquo
your answer as a product salesperson can (sadly) dictate
the future of your deal When followed swiftly by a sharp
intake of breath and ldquowhat can you do on the pricerdquo many
salespeople will ldquosee what they can dordquo and usually offer
some form of discount package shaving dollars off your
margins
Itrsquos killing your business Herersquos why
Donrsquot wage a price war why discounting is killing your business
Discount to the detriment of long term profits
While great for short term sales spikes discounting
will ultimately hit your long-term profits hard
In discounting yoursquore not fostering a long-term
relationship with your customers ndash yoursquore having a
fling with a lsquodeal shopperrsquo who wonrsquot ever call you
back Plus why should the fly by customer pay less
than an existing customer who gives you repeat
business on a regular basis
Yoursquore commoditizing your business
In the wholesale distribution industry intense
competition comes with the territory But
undercutting competitors wonrsquot do you any good
Low value products can in turn lead to a low value
company with customers fixated on price with low
expectations and little to no engagement with
your brand Yoursquod never refer to your products as
mere lsquocommoditiesrsquo so donrsquot start commoditizing
your business with discounts
Raises uncomfortable questions
Say you cut prices by 20 The question on your
customersrsquo lips wonrsquot be ldquoWhere do I signrdquo instead
itrsquoll be ldquoWhat was your mark-up beforehandrdquo
Itrsquos not a question any wholesale distributor ever
wants to be faced with is it If yoursquove got the ability
to slash prices at a momentrsquos notice customers
can become wary about how much profit you
were making before making you unstrustworthy
Customers will bide their time for lower prices
If yoursquove discounted before chances are yoursquoll
consider doing it again for that elusive spike in
your sales volume Your customers are savvy
beings and will wait patiently for you to discount
again Think of Black Friday people bide their
time knowing that a discount is coming soon Your
sales will tail off in periods when yoursquore not offering
discounts and only spike when you cut your prices
Do you want to be a discount brand
Lowering your prices essentially makes you one
Discounting heavily can damage your brand and
sully everything you stand for as a company
Most people value things based on price and
knockdown prices can give your customers the
idea that yoursquore becoming a discount brand
If thatrsquos not what yoursquore aiming to do will your
customers be willing to step up and pay full price
when yoursquore not discounting
More discount = less profit
Imagine your profit margin is 30 If yoursquore offering
a 20 discount your profit margin then becomes
10 As the cost of raw materials continues to rise
along with sharp increases in labor costs can you
really afford to cut your prices In short yoursquoll have
to increase how much you sell to maintain the
same level of revenue Meaning more production
costs more time and a lot more effort
5
Sometimes it can seem like therersquos no alternative but to
offer a discount to secure a sale With the threat of your
competition ready to lure away your customers as soon as
you deny their request for a discount how can businesses
today really say no
Competing effectively means doing more than just offering
a cheaper deal Have competitive prices by all means but
there are things you can be doing to avoid the pitfalls of
discounting and make a difference with your customers
Donrsquot wage a price war why discounting is killing your business
wwwsales-icom
H O W TO AV O I D
T H E P I T FA L L S O F
D I S C O U N T I N G
Increase your product range
A wide product range can encourage your
customers to spend more of their money with
you If yoursquore selling for example nuts and bolts
to your customers broadening your product range
to include washers screws and tools can incite
your customers to spend more money with you A
wider product range makes it easy for them to get
everything they need from you
Think of the likes of Walmart and other traditional
grocery stores They no longer sell just groceries
you can pick up pens clothes TVs and even
garden furniture at most superstores today
Sharpen up your positioning
Make sure you fully understand your buyers What
are their challenges What makes them tick
What are their goals Armed with this knowledge
you can rejig your positioning and offer a product
they canrsquot live without
Make your product a lsquomust haversquo Make it easy
for your customer to get pepped up and excited
about your offering Theyrsquoll be so swept away in the
excitement that the price will be an afterthought
Add value
This ties in nicely with the previous point As a
wholesale distribution salesperson you need to
understand exactly where your companyrsquos offering
fits in with their day-to-day lives How will it change
their lives Will it save them time Money Effort
Knowing precisely what your product can bring to
the table will make those hellish price negotiations
a thing of the past Remember that a lower price
doesnrsquot always mean better value in fact a higher
price is often attributed to superior quality
Let your customers do the talking
Your existing customers are your biggest weapon
when closing a sale Already advocates of your
brand sharing case studies testimonials videos
and references from people already using your
product or service can be a game-changer when
yoursquore selling Hearing how good your offering is
from other users is incredibly powerful
E X A M P L E O F
D I S C O U N T I N G
G O N E W R O N G
Franchisees of the fast-food giant McDonaldrsquos claim that
they are being forced to offer too many discounts Getting
customers through the door and making profitable sales are
two very different things As private investors in McDonaldrsquos
franchises these individuals are reporting huge losses
compared with the same quarter of last year simply by
reducing their prices
While this doesnrsquot directly impact customers itrsquos clear to
see how discounting can negatively affect a companyrsquos
bottom line If companies the size of McDonaldrsquos feel the
pain of discounting whatrsquos to say your wholesale distribution
company wonrsquot feel the same
Instead of discounting look to McDonaldsrsquo famous up-sell
ldquoWould you like fries with thatrdquo This simple question must
have made the company billions over the years is there a
similar question you could be asking
7wwwsales-icom
271
02
08
$15
Restaurants taken part in the discounting scheme
Growth slowed by 02 in the third quarter
They expect a 08 decline in sales in the fourth quarter
Labor costs on average $15 per hour meaning discounting can be difficult
Donrsquot wage a price war why discounting is killing your business
M C D O N A L D rsquo S
E X A M P L E S O F
B R A N D S T H AT
D O N rsquo T D I S C O U N T
9wwwsales-icom
Donrsquot wage a price war why discounting is killing your business
Technology giant Apple has never offered a discount Yet
come iPhone 8 release day you can guarantee people
around the world will be camping overnight to be first in
line to buy one at list price (or even more on eBay when
stock is low) Apple products have become a cult item that
customers are willing to pay for From the experience in
store to aftercare and support Apple doesnrsquot offer discounts
to its customers because they just donrsquot need to
ldquoItrsquos up to us to convince people to maybe spend a little
more for a materially better experience of product And we
think that people will do that if the product is great and if itrsquos
messaged appropriatelyrdquo
- TIM COOK CEO OF APPLE
Apple
Luxury fashion brand Louis Vuitton will never offer a
discount Having faced near bankruptcy in the early 1970s
due to private franchisees marking up prices on their luxury
handbags and luggage and pocketing the difference After
a swift management shakeup Louis Vuitton became a
vertically integrated company that today owns their entire
supply chain from factories to shop floors in department
stores Customers canrsquot purchase Louis Vuitton products
anywhere but official outlets or authorized concessions ndash
making it impossible to discount
ldquoControlling the channel meant you controlled the price
Without a middleman margins are higher offering a
plumper profit cushion during downturns This practice also
confers exclusivity since you can buy a given product only
from an authorized dealer where price is fixedrdquo
- HENRY RECAMIER 1977 OWNER OF LOUIS VUITTON
Louis Vuitton
Business magnate founder of Tesla Space X SolarCity
and Paypal and all round nice guy Elon Musk is one of the
greatest and most humble businessmen of our generation
Musk recently penned a lengthy email to his Tesla team
about the very reasons why they never offer a discount on
their cars Itrsquos worth the read We promise
ldquoThe acid test is that if you canrsquot explain to a customer who
paid full price why another customer didnrsquot without being
embarrassed then it is not rightrdquo
- ELON MUSK FOUNDER OF TESLA (AND OTHERS)
Tesla
10
STATISTICS
wwwsales-icom
Donrsquot wage a price war why discounting is killing your business
67
40
1
8
Offering discounts means poor loyalty and loyal customers spend 67 more than new ones with
repeat purchases
Source wwwinccom
Promotions often have little impact on buyers ndash 40 would have bought an item anyway promotion or no promotion
Source wwwinspectorinsightcom
A 1 pricing discount results in a decrease of 8 in operating profits for the average company
Source McKinsey amp Company
If volumes remained stable a price rise of 1 would an 8 increase in operating profits
Source McKinsey amp Company
A pricing strategy is something thatrsquos often decided without
much thought within many businesses Itrsquos not an easy task
to get right but business owners often fail to anticipate how
quickly profit margins can disappear when they give away
a harmless concession here and there such as 10 off their
usual list price
For a business with a 20 gross margin a 10 discount gives
away 50 of their profits as raw materials and operational
costs remain the same Is a 10 discount going to increase
sales by 50 Probably not
Donrsquot wage a price war why discounting is killing your business
11wwwsales-icom
How discounting eats into profits
Costs
80Costs
80
Profit
20
Discount 10
Profit 10
In short discounting is bad Adding value is good Knowing
your customers inside out is key to providing an experience
that will keep your customers coming back for more and
negating the need to cut your prices just to get that elusive
ldquoyesrdquo
Be more proactive in your sales approach and pre-empt your
customerrsquos next purchasing move Using sales technology
can help you to be more proactive yoursquoll be able to avoid
those awkward discount conversations altogether This kind
of software can help you to get ahead of your competition
before they even have a chance to undercut you and start
a price war Whatrsquos more if yoursquore being more proactive
towards your customers theyrsquoll trust you more and in turn
become more loyal If this is the case even a low price wonrsquot
be effective in securing their business
Some of the most successful companies in history have
never once offered a discount and theyrsquove stayed true to
their morals A quality product that will help improve or
better any aspect of your buyersrsquo lives shouldnrsquot need to be
discounted
12
Donrsquot wage a price war why discounting is killing your business
wwwsales-icom
TO S U M M A R I Z E
ABOUT ldquoIt is a no brainer for distributors and the personal service is outstandingrdquo
sales-i is sales performance software designed to make
every sales call more personal and profitable
sales-i enables sales professionals to clearly identify and
target high quality sales opportunities within their current
customer base Equipped with customer buying behavior
alerts salespeople can make insightful personalized
quick business decisions realizing repeat sales reduced
customer attrition and maximized profit margins as a result
sales-i will change the way you sell Get in touch for a free
online demonstration and judge our software for yourself
tellmemoresales-icom
wwwsales-icom
- Scott Bennett Bennett Auto Supply
ldquoOne call using sales-i yielded a $5000 order from an account that was leaving us for a competitor he felt we did not care sales-i showed him we didrdquo
- Ron Dahlhaus Buy Wise Auto Parts
ldquoWersquove closed off the financial year 58 up on the previous year and attribute this directly to sales-i and their sales performance softwarerdquo
- Larry Sexton Office 360ordm
We are the leader in sales performance for distributors and wholesalers
Donrsquot wage a price war why discounting is killing your business
Your boss Your sales director Your finance team More
often than not senior management will dictate pricing and
simply force this onto your sales team and subsequently
your buyers However without any understanding of the
pricing strategy you should be adopting setting a price can
end up being nothing more than a shot in the dark for most
departments of your business
Your sales director will likely look to set the price as high as
possible to generate the most revenue the same goes for
your boss and your finance team
A price too low and yoursquoll be throwing money away Too high
and yoursquoll see a dip in sales volume Itrsquos a tricky game to get
right and should involve a team that know what constitutes
an acceptable price for your customers
Donrsquot wage a price war why discounting is killing your business
2wwwsales-icom
Who dictates your pricing
1 What value will your product or service
bring the buyer
2 Are your customers price sensitive
3 What are you doing differently to your
competition
4 Is your customer willing to pay $XYZ for
your product
Theory suggests that your marketing team should control
and dictate the pricing of your products Letrsquos go back to
your high school Business class Remember the 4Ps that
your teacher probably prattled on about for at least a
couple of lessons These 4Ps of the marketing mix are what
the crayon-wielding creative ninjas live by product place
promotion and PRICE
Your marketing team will always have an ear to the ground
They know your customers inside out your market like the
back of their hand and competitors like their closest friends
A bit of market research here some sneaky competitor
analysis there ndash your marketing team really are in the best
position to dictate your pricing
This doesnrsquot mean that your management team or finance
gurus should be left out altogether but marketing should
have the overarching ability to dictate the price of your
product or service depending upon seasons trends or
competitor activity
When coupled with a smart value positioning and some
really intriguing promotion price can end up being one
factor of many rather than THE deciding factor for your
customers when theyrsquore in the market for your products
Who should dictate your pricing Things to establish before setting a price
5 How much margin do you need to make
selling your product worthwhile
W H Y I S
D I S C O U N T I N G
K I L L I N G YO U R
B U S I N E S S
4wwwsales-icom
Discounting no matter how marginal can and will kill your
business A bold statement we know Wersquore all material
people We like stuff And we like to get said stuff at the best
possible value But good value doesnrsquot always mean the
lowest cost
But when your customer utters the words ldquohow much is itrdquo
your answer as a product salesperson can (sadly) dictate
the future of your deal When followed swiftly by a sharp
intake of breath and ldquowhat can you do on the pricerdquo many
salespeople will ldquosee what they can dordquo and usually offer
some form of discount package shaving dollars off your
margins
Itrsquos killing your business Herersquos why
Donrsquot wage a price war why discounting is killing your business
Discount to the detriment of long term profits
While great for short term sales spikes discounting
will ultimately hit your long-term profits hard
In discounting yoursquore not fostering a long-term
relationship with your customers ndash yoursquore having a
fling with a lsquodeal shopperrsquo who wonrsquot ever call you
back Plus why should the fly by customer pay less
than an existing customer who gives you repeat
business on a regular basis
Yoursquore commoditizing your business
In the wholesale distribution industry intense
competition comes with the territory But
undercutting competitors wonrsquot do you any good
Low value products can in turn lead to a low value
company with customers fixated on price with low
expectations and little to no engagement with
your brand Yoursquod never refer to your products as
mere lsquocommoditiesrsquo so donrsquot start commoditizing
your business with discounts
Raises uncomfortable questions
Say you cut prices by 20 The question on your
customersrsquo lips wonrsquot be ldquoWhere do I signrdquo instead
itrsquoll be ldquoWhat was your mark-up beforehandrdquo
Itrsquos not a question any wholesale distributor ever
wants to be faced with is it If yoursquove got the ability
to slash prices at a momentrsquos notice customers
can become wary about how much profit you
were making before making you unstrustworthy
Customers will bide their time for lower prices
If yoursquove discounted before chances are yoursquoll
consider doing it again for that elusive spike in
your sales volume Your customers are savvy
beings and will wait patiently for you to discount
again Think of Black Friday people bide their
time knowing that a discount is coming soon Your
sales will tail off in periods when yoursquore not offering
discounts and only spike when you cut your prices
Do you want to be a discount brand
Lowering your prices essentially makes you one
Discounting heavily can damage your brand and
sully everything you stand for as a company
Most people value things based on price and
knockdown prices can give your customers the
idea that yoursquore becoming a discount brand
If thatrsquos not what yoursquore aiming to do will your
customers be willing to step up and pay full price
when yoursquore not discounting
More discount = less profit
Imagine your profit margin is 30 If yoursquore offering
a 20 discount your profit margin then becomes
10 As the cost of raw materials continues to rise
along with sharp increases in labor costs can you
really afford to cut your prices In short yoursquoll have
to increase how much you sell to maintain the
same level of revenue Meaning more production
costs more time and a lot more effort
5
Sometimes it can seem like therersquos no alternative but to
offer a discount to secure a sale With the threat of your
competition ready to lure away your customers as soon as
you deny their request for a discount how can businesses
today really say no
Competing effectively means doing more than just offering
a cheaper deal Have competitive prices by all means but
there are things you can be doing to avoid the pitfalls of
discounting and make a difference with your customers
Donrsquot wage a price war why discounting is killing your business
wwwsales-icom
H O W TO AV O I D
T H E P I T FA L L S O F
D I S C O U N T I N G
Increase your product range
A wide product range can encourage your
customers to spend more of their money with
you If yoursquore selling for example nuts and bolts
to your customers broadening your product range
to include washers screws and tools can incite
your customers to spend more money with you A
wider product range makes it easy for them to get
everything they need from you
Think of the likes of Walmart and other traditional
grocery stores They no longer sell just groceries
you can pick up pens clothes TVs and even
garden furniture at most superstores today
Sharpen up your positioning
Make sure you fully understand your buyers What
are their challenges What makes them tick
What are their goals Armed with this knowledge
you can rejig your positioning and offer a product
they canrsquot live without
Make your product a lsquomust haversquo Make it easy
for your customer to get pepped up and excited
about your offering Theyrsquoll be so swept away in the
excitement that the price will be an afterthought
Add value
This ties in nicely with the previous point As a
wholesale distribution salesperson you need to
understand exactly where your companyrsquos offering
fits in with their day-to-day lives How will it change
their lives Will it save them time Money Effort
Knowing precisely what your product can bring to
the table will make those hellish price negotiations
a thing of the past Remember that a lower price
doesnrsquot always mean better value in fact a higher
price is often attributed to superior quality
Let your customers do the talking
Your existing customers are your biggest weapon
when closing a sale Already advocates of your
brand sharing case studies testimonials videos
and references from people already using your
product or service can be a game-changer when
yoursquore selling Hearing how good your offering is
from other users is incredibly powerful
E X A M P L E O F
D I S C O U N T I N G
G O N E W R O N G
Franchisees of the fast-food giant McDonaldrsquos claim that
they are being forced to offer too many discounts Getting
customers through the door and making profitable sales are
two very different things As private investors in McDonaldrsquos
franchises these individuals are reporting huge losses
compared with the same quarter of last year simply by
reducing their prices
While this doesnrsquot directly impact customers itrsquos clear to
see how discounting can negatively affect a companyrsquos
bottom line If companies the size of McDonaldrsquos feel the
pain of discounting whatrsquos to say your wholesale distribution
company wonrsquot feel the same
Instead of discounting look to McDonaldsrsquo famous up-sell
ldquoWould you like fries with thatrdquo This simple question must
have made the company billions over the years is there a
similar question you could be asking
7wwwsales-icom
271
02
08
$15
Restaurants taken part in the discounting scheme
Growth slowed by 02 in the third quarter
They expect a 08 decline in sales in the fourth quarter
Labor costs on average $15 per hour meaning discounting can be difficult
Donrsquot wage a price war why discounting is killing your business
M C D O N A L D rsquo S
E X A M P L E S O F
B R A N D S T H AT
D O N rsquo T D I S C O U N T
9wwwsales-icom
Donrsquot wage a price war why discounting is killing your business
Technology giant Apple has never offered a discount Yet
come iPhone 8 release day you can guarantee people
around the world will be camping overnight to be first in
line to buy one at list price (or even more on eBay when
stock is low) Apple products have become a cult item that
customers are willing to pay for From the experience in
store to aftercare and support Apple doesnrsquot offer discounts
to its customers because they just donrsquot need to
ldquoItrsquos up to us to convince people to maybe spend a little
more for a materially better experience of product And we
think that people will do that if the product is great and if itrsquos
messaged appropriatelyrdquo
- TIM COOK CEO OF APPLE
Apple
Luxury fashion brand Louis Vuitton will never offer a
discount Having faced near bankruptcy in the early 1970s
due to private franchisees marking up prices on their luxury
handbags and luggage and pocketing the difference After
a swift management shakeup Louis Vuitton became a
vertically integrated company that today owns their entire
supply chain from factories to shop floors in department
stores Customers canrsquot purchase Louis Vuitton products
anywhere but official outlets or authorized concessions ndash
making it impossible to discount
ldquoControlling the channel meant you controlled the price
Without a middleman margins are higher offering a
plumper profit cushion during downturns This practice also
confers exclusivity since you can buy a given product only
from an authorized dealer where price is fixedrdquo
- HENRY RECAMIER 1977 OWNER OF LOUIS VUITTON
Louis Vuitton
Business magnate founder of Tesla Space X SolarCity
and Paypal and all round nice guy Elon Musk is one of the
greatest and most humble businessmen of our generation
Musk recently penned a lengthy email to his Tesla team
about the very reasons why they never offer a discount on
their cars Itrsquos worth the read We promise
ldquoThe acid test is that if you canrsquot explain to a customer who
paid full price why another customer didnrsquot without being
embarrassed then it is not rightrdquo
- ELON MUSK FOUNDER OF TESLA (AND OTHERS)
Tesla
10
STATISTICS
wwwsales-icom
Donrsquot wage a price war why discounting is killing your business
67
40
1
8
Offering discounts means poor loyalty and loyal customers spend 67 more than new ones with
repeat purchases
Source wwwinccom
Promotions often have little impact on buyers ndash 40 would have bought an item anyway promotion or no promotion
Source wwwinspectorinsightcom
A 1 pricing discount results in a decrease of 8 in operating profits for the average company
Source McKinsey amp Company
If volumes remained stable a price rise of 1 would an 8 increase in operating profits
Source McKinsey amp Company
A pricing strategy is something thatrsquos often decided without
much thought within many businesses Itrsquos not an easy task
to get right but business owners often fail to anticipate how
quickly profit margins can disappear when they give away
a harmless concession here and there such as 10 off their
usual list price
For a business with a 20 gross margin a 10 discount gives
away 50 of their profits as raw materials and operational
costs remain the same Is a 10 discount going to increase
sales by 50 Probably not
Donrsquot wage a price war why discounting is killing your business
11wwwsales-icom
How discounting eats into profits
Costs
80Costs
80
Profit
20
Discount 10
Profit 10
In short discounting is bad Adding value is good Knowing
your customers inside out is key to providing an experience
that will keep your customers coming back for more and
negating the need to cut your prices just to get that elusive
ldquoyesrdquo
Be more proactive in your sales approach and pre-empt your
customerrsquos next purchasing move Using sales technology
can help you to be more proactive yoursquoll be able to avoid
those awkward discount conversations altogether This kind
of software can help you to get ahead of your competition
before they even have a chance to undercut you and start
a price war Whatrsquos more if yoursquore being more proactive
towards your customers theyrsquoll trust you more and in turn
become more loyal If this is the case even a low price wonrsquot
be effective in securing their business
Some of the most successful companies in history have
never once offered a discount and theyrsquove stayed true to
their morals A quality product that will help improve or
better any aspect of your buyersrsquo lives shouldnrsquot need to be
discounted
12
Donrsquot wage a price war why discounting is killing your business
wwwsales-icom
TO S U M M A R I Z E
ABOUT ldquoIt is a no brainer for distributors and the personal service is outstandingrdquo
sales-i is sales performance software designed to make
every sales call more personal and profitable
sales-i enables sales professionals to clearly identify and
target high quality sales opportunities within their current
customer base Equipped with customer buying behavior
alerts salespeople can make insightful personalized
quick business decisions realizing repeat sales reduced
customer attrition and maximized profit margins as a result
sales-i will change the way you sell Get in touch for a free
online demonstration and judge our software for yourself
tellmemoresales-icom
wwwsales-icom
- Scott Bennett Bennett Auto Supply
ldquoOne call using sales-i yielded a $5000 order from an account that was leaving us for a competitor he felt we did not care sales-i showed him we didrdquo
- Ron Dahlhaus Buy Wise Auto Parts
ldquoWersquove closed off the financial year 58 up on the previous year and attribute this directly to sales-i and their sales performance softwarerdquo
- Larry Sexton Office 360ordm
We are the leader in sales performance for distributors and wholesalers
Donrsquot wage a price war why discounting is killing your business
W H Y I S
D I S C O U N T I N G
K I L L I N G YO U R
B U S I N E S S
4wwwsales-icom
Discounting no matter how marginal can and will kill your
business A bold statement we know Wersquore all material
people We like stuff And we like to get said stuff at the best
possible value But good value doesnrsquot always mean the
lowest cost
But when your customer utters the words ldquohow much is itrdquo
your answer as a product salesperson can (sadly) dictate
the future of your deal When followed swiftly by a sharp
intake of breath and ldquowhat can you do on the pricerdquo many
salespeople will ldquosee what they can dordquo and usually offer
some form of discount package shaving dollars off your
margins
Itrsquos killing your business Herersquos why
Donrsquot wage a price war why discounting is killing your business
Discount to the detriment of long term profits
While great for short term sales spikes discounting
will ultimately hit your long-term profits hard
In discounting yoursquore not fostering a long-term
relationship with your customers ndash yoursquore having a
fling with a lsquodeal shopperrsquo who wonrsquot ever call you
back Plus why should the fly by customer pay less
than an existing customer who gives you repeat
business on a regular basis
Yoursquore commoditizing your business
In the wholesale distribution industry intense
competition comes with the territory But
undercutting competitors wonrsquot do you any good
Low value products can in turn lead to a low value
company with customers fixated on price with low
expectations and little to no engagement with
your brand Yoursquod never refer to your products as
mere lsquocommoditiesrsquo so donrsquot start commoditizing
your business with discounts
Raises uncomfortable questions
Say you cut prices by 20 The question on your
customersrsquo lips wonrsquot be ldquoWhere do I signrdquo instead
itrsquoll be ldquoWhat was your mark-up beforehandrdquo
Itrsquos not a question any wholesale distributor ever
wants to be faced with is it If yoursquove got the ability
to slash prices at a momentrsquos notice customers
can become wary about how much profit you
were making before making you unstrustworthy
Customers will bide their time for lower prices
If yoursquove discounted before chances are yoursquoll
consider doing it again for that elusive spike in
your sales volume Your customers are savvy
beings and will wait patiently for you to discount
again Think of Black Friday people bide their
time knowing that a discount is coming soon Your
sales will tail off in periods when yoursquore not offering
discounts and only spike when you cut your prices
Do you want to be a discount brand
Lowering your prices essentially makes you one
Discounting heavily can damage your brand and
sully everything you stand for as a company
Most people value things based on price and
knockdown prices can give your customers the
idea that yoursquore becoming a discount brand
If thatrsquos not what yoursquore aiming to do will your
customers be willing to step up and pay full price
when yoursquore not discounting
More discount = less profit
Imagine your profit margin is 30 If yoursquore offering
a 20 discount your profit margin then becomes
10 As the cost of raw materials continues to rise
along with sharp increases in labor costs can you
really afford to cut your prices In short yoursquoll have
to increase how much you sell to maintain the
same level of revenue Meaning more production
costs more time and a lot more effort
5
Sometimes it can seem like therersquos no alternative but to
offer a discount to secure a sale With the threat of your
competition ready to lure away your customers as soon as
you deny their request for a discount how can businesses
today really say no
Competing effectively means doing more than just offering
a cheaper deal Have competitive prices by all means but
there are things you can be doing to avoid the pitfalls of
discounting and make a difference with your customers
Donrsquot wage a price war why discounting is killing your business
wwwsales-icom
H O W TO AV O I D
T H E P I T FA L L S O F
D I S C O U N T I N G
Increase your product range
A wide product range can encourage your
customers to spend more of their money with
you If yoursquore selling for example nuts and bolts
to your customers broadening your product range
to include washers screws and tools can incite
your customers to spend more money with you A
wider product range makes it easy for them to get
everything they need from you
Think of the likes of Walmart and other traditional
grocery stores They no longer sell just groceries
you can pick up pens clothes TVs and even
garden furniture at most superstores today
Sharpen up your positioning
Make sure you fully understand your buyers What
are their challenges What makes them tick
What are their goals Armed with this knowledge
you can rejig your positioning and offer a product
they canrsquot live without
Make your product a lsquomust haversquo Make it easy
for your customer to get pepped up and excited
about your offering Theyrsquoll be so swept away in the
excitement that the price will be an afterthought
Add value
This ties in nicely with the previous point As a
wholesale distribution salesperson you need to
understand exactly where your companyrsquos offering
fits in with their day-to-day lives How will it change
their lives Will it save them time Money Effort
Knowing precisely what your product can bring to
the table will make those hellish price negotiations
a thing of the past Remember that a lower price
doesnrsquot always mean better value in fact a higher
price is often attributed to superior quality
Let your customers do the talking
Your existing customers are your biggest weapon
when closing a sale Already advocates of your
brand sharing case studies testimonials videos
and references from people already using your
product or service can be a game-changer when
yoursquore selling Hearing how good your offering is
from other users is incredibly powerful
E X A M P L E O F
D I S C O U N T I N G
G O N E W R O N G
Franchisees of the fast-food giant McDonaldrsquos claim that
they are being forced to offer too many discounts Getting
customers through the door and making profitable sales are
two very different things As private investors in McDonaldrsquos
franchises these individuals are reporting huge losses
compared with the same quarter of last year simply by
reducing their prices
While this doesnrsquot directly impact customers itrsquos clear to
see how discounting can negatively affect a companyrsquos
bottom line If companies the size of McDonaldrsquos feel the
pain of discounting whatrsquos to say your wholesale distribution
company wonrsquot feel the same
Instead of discounting look to McDonaldsrsquo famous up-sell
ldquoWould you like fries with thatrdquo This simple question must
have made the company billions over the years is there a
similar question you could be asking
7wwwsales-icom
271
02
08
$15
Restaurants taken part in the discounting scheme
Growth slowed by 02 in the third quarter
They expect a 08 decline in sales in the fourth quarter
Labor costs on average $15 per hour meaning discounting can be difficult
Donrsquot wage a price war why discounting is killing your business
M C D O N A L D rsquo S
E X A M P L E S O F
B R A N D S T H AT
D O N rsquo T D I S C O U N T
9wwwsales-icom
Donrsquot wage a price war why discounting is killing your business
Technology giant Apple has never offered a discount Yet
come iPhone 8 release day you can guarantee people
around the world will be camping overnight to be first in
line to buy one at list price (or even more on eBay when
stock is low) Apple products have become a cult item that
customers are willing to pay for From the experience in
store to aftercare and support Apple doesnrsquot offer discounts
to its customers because they just donrsquot need to
ldquoItrsquos up to us to convince people to maybe spend a little
more for a materially better experience of product And we
think that people will do that if the product is great and if itrsquos
messaged appropriatelyrdquo
- TIM COOK CEO OF APPLE
Apple
Luxury fashion brand Louis Vuitton will never offer a
discount Having faced near bankruptcy in the early 1970s
due to private franchisees marking up prices on their luxury
handbags and luggage and pocketing the difference After
a swift management shakeup Louis Vuitton became a
vertically integrated company that today owns their entire
supply chain from factories to shop floors in department
stores Customers canrsquot purchase Louis Vuitton products
anywhere but official outlets or authorized concessions ndash
making it impossible to discount
ldquoControlling the channel meant you controlled the price
Without a middleman margins are higher offering a
plumper profit cushion during downturns This practice also
confers exclusivity since you can buy a given product only
from an authorized dealer where price is fixedrdquo
- HENRY RECAMIER 1977 OWNER OF LOUIS VUITTON
Louis Vuitton
Business magnate founder of Tesla Space X SolarCity
and Paypal and all round nice guy Elon Musk is one of the
greatest and most humble businessmen of our generation
Musk recently penned a lengthy email to his Tesla team
about the very reasons why they never offer a discount on
their cars Itrsquos worth the read We promise
ldquoThe acid test is that if you canrsquot explain to a customer who
paid full price why another customer didnrsquot without being
embarrassed then it is not rightrdquo
- ELON MUSK FOUNDER OF TESLA (AND OTHERS)
Tesla
10
STATISTICS
wwwsales-icom
Donrsquot wage a price war why discounting is killing your business
67
40
1
8
Offering discounts means poor loyalty and loyal customers spend 67 more than new ones with
repeat purchases
Source wwwinccom
Promotions often have little impact on buyers ndash 40 would have bought an item anyway promotion or no promotion
Source wwwinspectorinsightcom
A 1 pricing discount results in a decrease of 8 in operating profits for the average company
Source McKinsey amp Company
If volumes remained stable a price rise of 1 would an 8 increase in operating profits
Source McKinsey amp Company
A pricing strategy is something thatrsquos often decided without
much thought within many businesses Itrsquos not an easy task
to get right but business owners often fail to anticipate how
quickly profit margins can disappear when they give away
a harmless concession here and there such as 10 off their
usual list price
For a business with a 20 gross margin a 10 discount gives
away 50 of their profits as raw materials and operational
costs remain the same Is a 10 discount going to increase
sales by 50 Probably not
Donrsquot wage a price war why discounting is killing your business
11wwwsales-icom
How discounting eats into profits
Costs
80Costs
80
Profit
20
Discount 10
Profit 10
In short discounting is bad Adding value is good Knowing
your customers inside out is key to providing an experience
that will keep your customers coming back for more and
negating the need to cut your prices just to get that elusive
ldquoyesrdquo
Be more proactive in your sales approach and pre-empt your
customerrsquos next purchasing move Using sales technology
can help you to be more proactive yoursquoll be able to avoid
those awkward discount conversations altogether This kind
of software can help you to get ahead of your competition
before they even have a chance to undercut you and start
a price war Whatrsquos more if yoursquore being more proactive
towards your customers theyrsquoll trust you more and in turn
become more loyal If this is the case even a low price wonrsquot
be effective in securing their business
Some of the most successful companies in history have
never once offered a discount and theyrsquove stayed true to
their morals A quality product that will help improve or
better any aspect of your buyersrsquo lives shouldnrsquot need to be
discounted
12
Donrsquot wage a price war why discounting is killing your business
wwwsales-icom
TO S U M M A R I Z E
ABOUT ldquoIt is a no brainer for distributors and the personal service is outstandingrdquo
sales-i is sales performance software designed to make
every sales call more personal and profitable
sales-i enables sales professionals to clearly identify and
target high quality sales opportunities within their current
customer base Equipped with customer buying behavior
alerts salespeople can make insightful personalized
quick business decisions realizing repeat sales reduced
customer attrition and maximized profit margins as a result
sales-i will change the way you sell Get in touch for a free
online demonstration and judge our software for yourself
tellmemoresales-icom
wwwsales-icom
- Scott Bennett Bennett Auto Supply
ldquoOne call using sales-i yielded a $5000 order from an account that was leaving us for a competitor he felt we did not care sales-i showed him we didrdquo
- Ron Dahlhaus Buy Wise Auto Parts
ldquoWersquove closed off the financial year 58 up on the previous year and attribute this directly to sales-i and their sales performance softwarerdquo
- Larry Sexton Office 360ordm
We are the leader in sales performance for distributors and wholesalers
Donrsquot wage a price war why discounting is killing your business
4wwwsales-icom
Discounting no matter how marginal can and will kill your
business A bold statement we know Wersquore all material
people We like stuff And we like to get said stuff at the best
possible value But good value doesnrsquot always mean the
lowest cost
But when your customer utters the words ldquohow much is itrdquo
your answer as a product salesperson can (sadly) dictate
the future of your deal When followed swiftly by a sharp
intake of breath and ldquowhat can you do on the pricerdquo many
salespeople will ldquosee what they can dordquo and usually offer
some form of discount package shaving dollars off your
margins
Itrsquos killing your business Herersquos why
Donrsquot wage a price war why discounting is killing your business
Discount to the detriment of long term profits
While great for short term sales spikes discounting
will ultimately hit your long-term profits hard
In discounting yoursquore not fostering a long-term
relationship with your customers ndash yoursquore having a
fling with a lsquodeal shopperrsquo who wonrsquot ever call you
back Plus why should the fly by customer pay less
than an existing customer who gives you repeat
business on a regular basis
Yoursquore commoditizing your business
In the wholesale distribution industry intense
competition comes with the territory But
undercutting competitors wonrsquot do you any good
Low value products can in turn lead to a low value
company with customers fixated on price with low
expectations and little to no engagement with
your brand Yoursquod never refer to your products as
mere lsquocommoditiesrsquo so donrsquot start commoditizing
your business with discounts
Raises uncomfortable questions
Say you cut prices by 20 The question on your
customersrsquo lips wonrsquot be ldquoWhere do I signrdquo instead
itrsquoll be ldquoWhat was your mark-up beforehandrdquo
Itrsquos not a question any wholesale distributor ever
wants to be faced with is it If yoursquove got the ability
to slash prices at a momentrsquos notice customers
can become wary about how much profit you
were making before making you unstrustworthy
Customers will bide their time for lower prices
If yoursquove discounted before chances are yoursquoll
consider doing it again for that elusive spike in
your sales volume Your customers are savvy
beings and will wait patiently for you to discount
again Think of Black Friday people bide their
time knowing that a discount is coming soon Your
sales will tail off in periods when yoursquore not offering
discounts and only spike when you cut your prices
Do you want to be a discount brand
Lowering your prices essentially makes you one
Discounting heavily can damage your brand and
sully everything you stand for as a company
Most people value things based on price and
knockdown prices can give your customers the
idea that yoursquore becoming a discount brand
If thatrsquos not what yoursquore aiming to do will your
customers be willing to step up and pay full price
when yoursquore not discounting
More discount = less profit
Imagine your profit margin is 30 If yoursquore offering
a 20 discount your profit margin then becomes
10 As the cost of raw materials continues to rise
along with sharp increases in labor costs can you
really afford to cut your prices In short yoursquoll have
to increase how much you sell to maintain the
same level of revenue Meaning more production
costs more time and a lot more effort
5
Sometimes it can seem like therersquos no alternative but to
offer a discount to secure a sale With the threat of your
competition ready to lure away your customers as soon as
you deny their request for a discount how can businesses
today really say no
Competing effectively means doing more than just offering
a cheaper deal Have competitive prices by all means but
there are things you can be doing to avoid the pitfalls of
discounting and make a difference with your customers
Donrsquot wage a price war why discounting is killing your business
wwwsales-icom
H O W TO AV O I D
T H E P I T FA L L S O F
D I S C O U N T I N G
Increase your product range
A wide product range can encourage your
customers to spend more of their money with
you If yoursquore selling for example nuts and bolts
to your customers broadening your product range
to include washers screws and tools can incite
your customers to spend more money with you A
wider product range makes it easy for them to get
everything they need from you
Think of the likes of Walmart and other traditional
grocery stores They no longer sell just groceries
you can pick up pens clothes TVs and even
garden furniture at most superstores today
Sharpen up your positioning
Make sure you fully understand your buyers What
are their challenges What makes them tick
What are their goals Armed with this knowledge
you can rejig your positioning and offer a product
they canrsquot live without
Make your product a lsquomust haversquo Make it easy
for your customer to get pepped up and excited
about your offering Theyrsquoll be so swept away in the
excitement that the price will be an afterthought
Add value
This ties in nicely with the previous point As a
wholesale distribution salesperson you need to
understand exactly where your companyrsquos offering
fits in with their day-to-day lives How will it change
their lives Will it save them time Money Effort
Knowing precisely what your product can bring to
the table will make those hellish price negotiations
a thing of the past Remember that a lower price
doesnrsquot always mean better value in fact a higher
price is often attributed to superior quality
Let your customers do the talking
Your existing customers are your biggest weapon
when closing a sale Already advocates of your
brand sharing case studies testimonials videos
and references from people already using your
product or service can be a game-changer when
yoursquore selling Hearing how good your offering is
from other users is incredibly powerful
E X A M P L E O F
D I S C O U N T I N G
G O N E W R O N G
Franchisees of the fast-food giant McDonaldrsquos claim that
they are being forced to offer too many discounts Getting
customers through the door and making profitable sales are
two very different things As private investors in McDonaldrsquos
franchises these individuals are reporting huge losses
compared with the same quarter of last year simply by
reducing their prices
While this doesnrsquot directly impact customers itrsquos clear to
see how discounting can negatively affect a companyrsquos
bottom line If companies the size of McDonaldrsquos feel the
pain of discounting whatrsquos to say your wholesale distribution
company wonrsquot feel the same
Instead of discounting look to McDonaldsrsquo famous up-sell
ldquoWould you like fries with thatrdquo This simple question must
have made the company billions over the years is there a
similar question you could be asking
7wwwsales-icom
271
02
08
$15
Restaurants taken part in the discounting scheme
Growth slowed by 02 in the third quarter
They expect a 08 decline in sales in the fourth quarter
Labor costs on average $15 per hour meaning discounting can be difficult
Donrsquot wage a price war why discounting is killing your business
M C D O N A L D rsquo S
E X A M P L E S O F
B R A N D S T H AT
D O N rsquo T D I S C O U N T
9wwwsales-icom
Donrsquot wage a price war why discounting is killing your business
Technology giant Apple has never offered a discount Yet
come iPhone 8 release day you can guarantee people
around the world will be camping overnight to be first in
line to buy one at list price (or even more on eBay when
stock is low) Apple products have become a cult item that
customers are willing to pay for From the experience in
store to aftercare and support Apple doesnrsquot offer discounts
to its customers because they just donrsquot need to
ldquoItrsquos up to us to convince people to maybe spend a little
more for a materially better experience of product And we
think that people will do that if the product is great and if itrsquos
messaged appropriatelyrdquo
- TIM COOK CEO OF APPLE
Apple
Luxury fashion brand Louis Vuitton will never offer a
discount Having faced near bankruptcy in the early 1970s
due to private franchisees marking up prices on their luxury
handbags and luggage and pocketing the difference After
a swift management shakeup Louis Vuitton became a
vertically integrated company that today owns their entire
supply chain from factories to shop floors in department
stores Customers canrsquot purchase Louis Vuitton products
anywhere but official outlets or authorized concessions ndash
making it impossible to discount
ldquoControlling the channel meant you controlled the price
Without a middleman margins are higher offering a
plumper profit cushion during downturns This practice also
confers exclusivity since you can buy a given product only
from an authorized dealer where price is fixedrdquo
- HENRY RECAMIER 1977 OWNER OF LOUIS VUITTON
Louis Vuitton
Business magnate founder of Tesla Space X SolarCity
and Paypal and all round nice guy Elon Musk is one of the
greatest and most humble businessmen of our generation
Musk recently penned a lengthy email to his Tesla team
about the very reasons why they never offer a discount on
their cars Itrsquos worth the read We promise
ldquoThe acid test is that if you canrsquot explain to a customer who
paid full price why another customer didnrsquot without being
embarrassed then it is not rightrdquo
- ELON MUSK FOUNDER OF TESLA (AND OTHERS)
Tesla
10
STATISTICS
wwwsales-icom
Donrsquot wage a price war why discounting is killing your business
67
40
1
8
Offering discounts means poor loyalty and loyal customers spend 67 more than new ones with
repeat purchases
Source wwwinccom
Promotions often have little impact on buyers ndash 40 would have bought an item anyway promotion or no promotion
Source wwwinspectorinsightcom
A 1 pricing discount results in a decrease of 8 in operating profits for the average company
Source McKinsey amp Company
If volumes remained stable a price rise of 1 would an 8 increase in operating profits
Source McKinsey amp Company
A pricing strategy is something thatrsquos often decided without
much thought within many businesses Itrsquos not an easy task
to get right but business owners often fail to anticipate how
quickly profit margins can disappear when they give away
a harmless concession here and there such as 10 off their
usual list price
For a business with a 20 gross margin a 10 discount gives
away 50 of their profits as raw materials and operational
costs remain the same Is a 10 discount going to increase
sales by 50 Probably not
Donrsquot wage a price war why discounting is killing your business
11wwwsales-icom
How discounting eats into profits
Costs
80Costs
80
Profit
20
Discount 10
Profit 10
In short discounting is bad Adding value is good Knowing
your customers inside out is key to providing an experience
that will keep your customers coming back for more and
negating the need to cut your prices just to get that elusive
ldquoyesrdquo
Be more proactive in your sales approach and pre-empt your
customerrsquos next purchasing move Using sales technology
can help you to be more proactive yoursquoll be able to avoid
those awkward discount conversations altogether This kind
of software can help you to get ahead of your competition
before they even have a chance to undercut you and start
a price war Whatrsquos more if yoursquore being more proactive
towards your customers theyrsquoll trust you more and in turn
become more loyal If this is the case even a low price wonrsquot
be effective in securing their business
Some of the most successful companies in history have
never once offered a discount and theyrsquove stayed true to
their morals A quality product that will help improve or
better any aspect of your buyersrsquo lives shouldnrsquot need to be
discounted
12
Donrsquot wage a price war why discounting is killing your business
wwwsales-icom
TO S U M M A R I Z E
ABOUT ldquoIt is a no brainer for distributors and the personal service is outstandingrdquo
sales-i is sales performance software designed to make
every sales call more personal and profitable
sales-i enables sales professionals to clearly identify and
target high quality sales opportunities within their current
customer base Equipped with customer buying behavior
alerts salespeople can make insightful personalized
quick business decisions realizing repeat sales reduced
customer attrition and maximized profit margins as a result
sales-i will change the way you sell Get in touch for a free
online demonstration and judge our software for yourself
tellmemoresales-icom
wwwsales-icom
- Scott Bennett Bennett Auto Supply
ldquoOne call using sales-i yielded a $5000 order from an account that was leaving us for a competitor he felt we did not care sales-i showed him we didrdquo
- Ron Dahlhaus Buy Wise Auto Parts
ldquoWersquove closed off the financial year 58 up on the previous year and attribute this directly to sales-i and their sales performance softwarerdquo
- Larry Sexton Office 360ordm
We are the leader in sales performance for distributors and wholesalers
Donrsquot wage a price war why discounting is killing your business
5
Sometimes it can seem like therersquos no alternative but to
offer a discount to secure a sale With the threat of your
competition ready to lure away your customers as soon as
you deny their request for a discount how can businesses
today really say no
Competing effectively means doing more than just offering
a cheaper deal Have competitive prices by all means but
there are things you can be doing to avoid the pitfalls of
discounting and make a difference with your customers
Donrsquot wage a price war why discounting is killing your business
wwwsales-icom
H O W TO AV O I D
T H E P I T FA L L S O F
D I S C O U N T I N G
Increase your product range
A wide product range can encourage your
customers to spend more of their money with
you If yoursquore selling for example nuts and bolts
to your customers broadening your product range
to include washers screws and tools can incite
your customers to spend more money with you A
wider product range makes it easy for them to get
everything they need from you
Think of the likes of Walmart and other traditional
grocery stores They no longer sell just groceries
you can pick up pens clothes TVs and even
garden furniture at most superstores today
Sharpen up your positioning
Make sure you fully understand your buyers What
are their challenges What makes them tick
What are their goals Armed with this knowledge
you can rejig your positioning and offer a product
they canrsquot live without
Make your product a lsquomust haversquo Make it easy
for your customer to get pepped up and excited
about your offering Theyrsquoll be so swept away in the
excitement that the price will be an afterthought
Add value
This ties in nicely with the previous point As a
wholesale distribution salesperson you need to
understand exactly where your companyrsquos offering
fits in with their day-to-day lives How will it change
their lives Will it save them time Money Effort
Knowing precisely what your product can bring to
the table will make those hellish price negotiations
a thing of the past Remember that a lower price
doesnrsquot always mean better value in fact a higher
price is often attributed to superior quality
Let your customers do the talking
Your existing customers are your biggest weapon
when closing a sale Already advocates of your
brand sharing case studies testimonials videos
and references from people already using your
product or service can be a game-changer when
yoursquore selling Hearing how good your offering is
from other users is incredibly powerful
E X A M P L E O F
D I S C O U N T I N G
G O N E W R O N G
Franchisees of the fast-food giant McDonaldrsquos claim that
they are being forced to offer too many discounts Getting
customers through the door and making profitable sales are
two very different things As private investors in McDonaldrsquos
franchises these individuals are reporting huge losses
compared with the same quarter of last year simply by
reducing their prices
While this doesnrsquot directly impact customers itrsquos clear to
see how discounting can negatively affect a companyrsquos
bottom line If companies the size of McDonaldrsquos feel the
pain of discounting whatrsquos to say your wholesale distribution
company wonrsquot feel the same
Instead of discounting look to McDonaldsrsquo famous up-sell
ldquoWould you like fries with thatrdquo This simple question must
have made the company billions over the years is there a
similar question you could be asking
7wwwsales-icom
271
02
08
$15
Restaurants taken part in the discounting scheme
Growth slowed by 02 in the third quarter
They expect a 08 decline in sales in the fourth quarter
Labor costs on average $15 per hour meaning discounting can be difficult
Donrsquot wage a price war why discounting is killing your business
M C D O N A L D rsquo S
E X A M P L E S O F
B R A N D S T H AT
D O N rsquo T D I S C O U N T
9wwwsales-icom
Donrsquot wage a price war why discounting is killing your business
Technology giant Apple has never offered a discount Yet
come iPhone 8 release day you can guarantee people
around the world will be camping overnight to be first in
line to buy one at list price (or even more on eBay when
stock is low) Apple products have become a cult item that
customers are willing to pay for From the experience in
store to aftercare and support Apple doesnrsquot offer discounts
to its customers because they just donrsquot need to
ldquoItrsquos up to us to convince people to maybe spend a little
more for a materially better experience of product And we
think that people will do that if the product is great and if itrsquos
messaged appropriatelyrdquo
- TIM COOK CEO OF APPLE
Apple
Luxury fashion brand Louis Vuitton will never offer a
discount Having faced near bankruptcy in the early 1970s
due to private franchisees marking up prices on their luxury
handbags and luggage and pocketing the difference After
a swift management shakeup Louis Vuitton became a
vertically integrated company that today owns their entire
supply chain from factories to shop floors in department
stores Customers canrsquot purchase Louis Vuitton products
anywhere but official outlets or authorized concessions ndash
making it impossible to discount
ldquoControlling the channel meant you controlled the price
Without a middleman margins are higher offering a
plumper profit cushion during downturns This practice also
confers exclusivity since you can buy a given product only
from an authorized dealer where price is fixedrdquo
- HENRY RECAMIER 1977 OWNER OF LOUIS VUITTON
Louis Vuitton
Business magnate founder of Tesla Space X SolarCity
and Paypal and all round nice guy Elon Musk is one of the
greatest and most humble businessmen of our generation
Musk recently penned a lengthy email to his Tesla team
about the very reasons why they never offer a discount on
their cars Itrsquos worth the read We promise
ldquoThe acid test is that if you canrsquot explain to a customer who
paid full price why another customer didnrsquot without being
embarrassed then it is not rightrdquo
- ELON MUSK FOUNDER OF TESLA (AND OTHERS)
Tesla
10
STATISTICS
wwwsales-icom
Donrsquot wage a price war why discounting is killing your business
67
40
1
8
Offering discounts means poor loyalty and loyal customers spend 67 more than new ones with
repeat purchases
Source wwwinccom
Promotions often have little impact on buyers ndash 40 would have bought an item anyway promotion or no promotion
Source wwwinspectorinsightcom
A 1 pricing discount results in a decrease of 8 in operating profits for the average company
Source McKinsey amp Company
If volumes remained stable a price rise of 1 would an 8 increase in operating profits
Source McKinsey amp Company
A pricing strategy is something thatrsquos often decided without
much thought within many businesses Itrsquos not an easy task
to get right but business owners often fail to anticipate how
quickly profit margins can disappear when they give away
a harmless concession here and there such as 10 off their
usual list price
For a business with a 20 gross margin a 10 discount gives
away 50 of their profits as raw materials and operational
costs remain the same Is a 10 discount going to increase
sales by 50 Probably not
Donrsquot wage a price war why discounting is killing your business
11wwwsales-icom
How discounting eats into profits
Costs
80Costs
80
Profit
20
Discount 10
Profit 10
In short discounting is bad Adding value is good Knowing
your customers inside out is key to providing an experience
that will keep your customers coming back for more and
negating the need to cut your prices just to get that elusive
ldquoyesrdquo
Be more proactive in your sales approach and pre-empt your
customerrsquos next purchasing move Using sales technology
can help you to be more proactive yoursquoll be able to avoid
those awkward discount conversations altogether This kind
of software can help you to get ahead of your competition
before they even have a chance to undercut you and start
a price war Whatrsquos more if yoursquore being more proactive
towards your customers theyrsquoll trust you more and in turn
become more loyal If this is the case even a low price wonrsquot
be effective in securing their business
Some of the most successful companies in history have
never once offered a discount and theyrsquove stayed true to
their morals A quality product that will help improve or
better any aspect of your buyersrsquo lives shouldnrsquot need to be
discounted
12
Donrsquot wage a price war why discounting is killing your business
wwwsales-icom
TO S U M M A R I Z E
ABOUT ldquoIt is a no brainer for distributors and the personal service is outstandingrdquo
sales-i is sales performance software designed to make
every sales call more personal and profitable
sales-i enables sales professionals to clearly identify and
target high quality sales opportunities within their current
customer base Equipped with customer buying behavior
alerts salespeople can make insightful personalized
quick business decisions realizing repeat sales reduced
customer attrition and maximized profit margins as a result
sales-i will change the way you sell Get in touch for a free
online demonstration and judge our software for yourself
tellmemoresales-icom
wwwsales-icom
- Scott Bennett Bennett Auto Supply
ldquoOne call using sales-i yielded a $5000 order from an account that was leaving us for a competitor he felt we did not care sales-i showed him we didrdquo
- Ron Dahlhaus Buy Wise Auto Parts
ldquoWersquove closed off the financial year 58 up on the previous year and attribute this directly to sales-i and their sales performance softwarerdquo
- Larry Sexton Office 360ordm
We are the leader in sales performance for distributors and wholesalers
Donrsquot wage a price war why discounting is killing your business
E X A M P L E O F
D I S C O U N T I N G
G O N E W R O N G
Franchisees of the fast-food giant McDonaldrsquos claim that
they are being forced to offer too many discounts Getting
customers through the door and making profitable sales are
two very different things As private investors in McDonaldrsquos
franchises these individuals are reporting huge losses
compared with the same quarter of last year simply by
reducing their prices
While this doesnrsquot directly impact customers itrsquos clear to
see how discounting can negatively affect a companyrsquos
bottom line If companies the size of McDonaldrsquos feel the
pain of discounting whatrsquos to say your wholesale distribution
company wonrsquot feel the same
Instead of discounting look to McDonaldsrsquo famous up-sell
ldquoWould you like fries with thatrdquo This simple question must
have made the company billions over the years is there a
similar question you could be asking
7wwwsales-icom
271
02
08
$15
Restaurants taken part in the discounting scheme
Growth slowed by 02 in the third quarter
They expect a 08 decline in sales in the fourth quarter
Labor costs on average $15 per hour meaning discounting can be difficult
Donrsquot wage a price war why discounting is killing your business
M C D O N A L D rsquo S
E X A M P L E S O F
B R A N D S T H AT
D O N rsquo T D I S C O U N T
9wwwsales-icom
Donrsquot wage a price war why discounting is killing your business
Technology giant Apple has never offered a discount Yet
come iPhone 8 release day you can guarantee people
around the world will be camping overnight to be first in
line to buy one at list price (or even more on eBay when
stock is low) Apple products have become a cult item that
customers are willing to pay for From the experience in
store to aftercare and support Apple doesnrsquot offer discounts
to its customers because they just donrsquot need to
ldquoItrsquos up to us to convince people to maybe spend a little
more for a materially better experience of product And we
think that people will do that if the product is great and if itrsquos
messaged appropriatelyrdquo
- TIM COOK CEO OF APPLE
Apple
Luxury fashion brand Louis Vuitton will never offer a
discount Having faced near bankruptcy in the early 1970s
due to private franchisees marking up prices on their luxury
handbags and luggage and pocketing the difference After
a swift management shakeup Louis Vuitton became a
vertically integrated company that today owns their entire
supply chain from factories to shop floors in department
stores Customers canrsquot purchase Louis Vuitton products
anywhere but official outlets or authorized concessions ndash
making it impossible to discount
ldquoControlling the channel meant you controlled the price
Without a middleman margins are higher offering a
plumper profit cushion during downturns This practice also
confers exclusivity since you can buy a given product only
from an authorized dealer where price is fixedrdquo
- HENRY RECAMIER 1977 OWNER OF LOUIS VUITTON
Louis Vuitton
Business magnate founder of Tesla Space X SolarCity
and Paypal and all round nice guy Elon Musk is one of the
greatest and most humble businessmen of our generation
Musk recently penned a lengthy email to his Tesla team
about the very reasons why they never offer a discount on
their cars Itrsquos worth the read We promise
ldquoThe acid test is that if you canrsquot explain to a customer who
paid full price why another customer didnrsquot without being
embarrassed then it is not rightrdquo
- ELON MUSK FOUNDER OF TESLA (AND OTHERS)
Tesla
10
STATISTICS
wwwsales-icom
Donrsquot wage a price war why discounting is killing your business
67
40
1
8
Offering discounts means poor loyalty and loyal customers spend 67 more than new ones with
repeat purchases
Source wwwinccom
Promotions often have little impact on buyers ndash 40 would have bought an item anyway promotion or no promotion
Source wwwinspectorinsightcom
A 1 pricing discount results in a decrease of 8 in operating profits for the average company
Source McKinsey amp Company
If volumes remained stable a price rise of 1 would an 8 increase in operating profits
Source McKinsey amp Company
A pricing strategy is something thatrsquos often decided without
much thought within many businesses Itrsquos not an easy task
to get right but business owners often fail to anticipate how
quickly profit margins can disappear when they give away
a harmless concession here and there such as 10 off their
usual list price
For a business with a 20 gross margin a 10 discount gives
away 50 of their profits as raw materials and operational
costs remain the same Is a 10 discount going to increase
sales by 50 Probably not
Donrsquot wage a price war why discounting is killing your business
11wwwsales-icom
How discounting eats into profits
Costs
80Costs
80
Profit
20
Discount 10
Profit 10
In short discounting is bad Adding value is good Knowing
your customers inside out is key to providing an experience
that will keep your customers coming back for more and
negating the need to cut your prices just to get that elusive
ldquoyesrdquo
Be more proactive in your sales approach and pre-empt your
customerrsquos next purchasing move Using sales technology
can help you to be more proactive yoursquoll be able to avoid
those awkward discount conversations altogether This kind
of software can help you to get ahead of your competition
before they even have a chance to undercut you and start
a price war Whatrsquos more if yoursquore being more proactive
towards your customers theyrsquoll trust you more and in turn
become more loyal If this is the case even a low price wonrsquot
be effective in securing their business
Some of the most successful companies in history have
never once offered a discount and theyrsquove stayed true to
their morals A quality product that will help improve or
better any aspect of your buyersrsquo lives shouldnrsquot need to be
discounted
12
Donrsquot wage a price war why discounting is killing your business
wwwsales-icom
TO S U M M A R I Z E
ABOUT ldquoIt is a no brainer for distributors and the personal service is outstandingrdquo
sales-i is sales performance software designed to make
every sales call more personal and profitable
sales-i enables sales professionals to clearly identify and
target high quality sales opportunities within their current
customer base Equipped with customer buying behavior
alerts salespeople can make insightful personalized
quick business decisions realizing repeat sales reduced
customer attrition and maximized profit margins as a result
sales-i will change the way you sell Get in touch for a free
online demonstration and judge our software for yourself
tellmemoresales-icom
wwwsales-icom
- Scott Bennett Bennett Auto Supply
ldquoOne call using sales-i yielded a $5000 order from an account that was leaving us for a competitor he felt we did not care sales-i showed him we didrdquo
- Ron Dahlhaus Buy Wise Auto Parts
ldquoWersquove closed off the financial year 58 up on the previous year and attribute this directly to sales-i and their sales performance softwarerdquo
- Larry Sexton Office 360ordm
We are the leader in sales performance for distributors and wholesalers
Donrsquot wage a price war why discounting is killing your business
Franchisees of the fast-food giant McDonaldrsquos claim that
they are being forced to offer too many discounts Getting
customers through the door and making profitable sales are
two very different things As private investors in McDonaldrsquos
franchises these individuals are reporting huge losses
compared with the same quarter of last year simply by
reducing their prices
While this doesnrsquot directly impact customers itrsquos clear to
see how discounting can negatively affect a companyrsquos
bottom line If companies the size of McDonaldrsquos feel the
pain of discounting whatrsquos to say your wholesale distribution
company wonrsquot feel the same
Instead of discounting look to McDonaldsrsquo famous up-sell
ldquoWould you like fries with thatrdquo This simple question must
have made the company billions over the years is there a
similar question you could be asking
7wwwsales-icom
271
02
08
$15
Restaurants taken part in the discounting scheme
Growth slowed by 02 in the third quarter
They expect a 08 decline in sales in the fourth quarter
Labor costs on average $15 per hour meaning discounting can be difficult
Donrsquot wage a price war why discounting is killing your business
M C D O N A L D rsquo S
E X A M P L E S O F
B R A N D S T H AT
D O N rsquo T D I S C O U N T
9wwwsales-icom
Donrsquot wage a price war why discounting is killing your business
Technology giant Apple has never offered a discount Yet
come iPhone 8 release day you can guarantee people
around the world will be camping overnight to be first in
line to buy one at list price (or even more on eBay when
stock is low) Apple products have become a cult item that
customers are willing to pay for From the experience in
store to aftercare and support Apple doesnrsquot offer discounts
to its customers because they just donrsquot need to
ldquoItrsquos up to us to convince people to maybe spend a little
more for a materially better experience of product And we
think that people will do that if the product is great and if itrsquos
messaged appropriatelyrdquo
- TIM COOK CEO OF APPLE
Apple
Luxury fashion brand Louis Vuitton will never offer a
discount Having faced near bankruptcy in the early 1970s
due to private franchisees marking up prices on their luxury
handbags and luggage and pocketing the difference After
a swift management shakeup Louis Vuitton became a
vertically integrated company that today owns their entire
supply chain from factories to shop floors in department
stores Customers canrsquot purchase Louis Vuitton products
anywhere but official outlets or authorized concessions ndash
making it impossible to discount
ldquoControlling the channel meant you controlled the price
Without a middleman margins are higher offering a
plumper profit cushion during downturns This practice also
confers exclusivity since you can buy a given product only
from an authorized dealer where price is fixedrdquo
- HENRY RECAMIER 1977 OWNER OF LOUIS VUITTON
Louis Vuitton
Business magnate founder of Tesla Space X SolarCity
and Paypal and all round nice guy Elon Musk is one of the
greatest and most humble businessmen of our generation
Musk recently penned a lengthy email to his Tesla team
about the very reasons why they never offer a discount on
their cars Itrsquos worth the read We promise
ldquoThe acid test is that if you canrsquot explain to a customer who
paid full price why another customer didnrsquot without being
embarrassed then it is not rightrdquo
- ELON MUSK FOUNDER OF TESLA (AND OTHERS)
Tesla
10
STATISTICS
wwwsales-icom
Donrsquot wage a price war why discounting is killing your business
67
40
1
8
Offering discounts means poor loyalty and loyal customers spend 67 more than new ones with
repeat purchases
Source wwwinccom
Promotions often have little impact on buyers ndash 40 would have bought an item anyway promotion or no promotion
Source wwwinspectorinsightcom
A 1 pricing discount results in a decrease of 8 in operating profits for the average company
Source McKinsey amp Company
If volumes remained stable a price rise of 1 would an 8 increase in operating profits
Source McKinsey amp Company
A pricing strategy is something thatrsquos often decided without
much thought within many businesses Itrsquos not an easy task
to get right but business owners often fail to anticipate how
quickly profit margins can disappear when they give away
a harmless concession here and there such as 10 off their
usual list price
For a business with a 20 gross margin a 10 discount gives
away 50 of their profits as raw materials and operational
costs remain the same Is a 10 discount going to increase
sales by 50 Probably not
Donrsquot wage a price war why discounting is killing your business
11wwwsales-icom
How discounting eats into profits
Costs
80Costs
80
Profit
20
Discount 10
Profit 10
In short discounting is bad Adding value is good Knowing
your customers inside out is key to providing an experience
that will keep your customers coming back for more and
negating the need to cut your prices just to get that elusive
ldquoyesrdquo
Be more proactive in your sales approach and pre-empt your
customerrsquos next purchasing move Using sales technology
can help you to be more proactive yoursquoll be able to avoid
those awkward discount conversations altogether This kind
of software can help you to get ahead of your competition
before they even have a chance to undercut you and start
a price war Whatrsquos more if yoursquore being more proactive
towards your customers theyrsquoll trust you more and in turn
become more loyal If this is the case even a low price wonrsquot
be effective in securing their business
Some of the most successful companies in history have
never once offered a discount and theyrsquove stayed true to
their morals A quality product that will help improve or
better any aspect of your buyersrsquo lives shouldnrsquot need to be
discounted
12
Donrsquot wage a price war why discounting is killing your business
wwwsales-icom
TO S U M M A R I Z E
ABOUT ldquoIt is a no brainer for distributors and the personal service is outstandingrdquo
sales-i is sales performance software designed to make
every sales call more personal and profitable
sales-i enables sales professionals to clearly identify and
target high quality sales opportunities within their current
customer base Equipped with customer buying behavior
alerts salespeople can make insightful personalized
quick business decisions realizing repeat sales reduced
customer attrition and maximized profit margins as a result
sales-i will change the way you sell Get in touch for a free
online demonstration and judge our software for yourself
tellmemoresales-icom
wwwsales-icom
- Scott Bennett Bennett Auto Supply
ldquoOne call using sales-i yielded a $5000 order from an account that was leaving us for a competitor he felt we did not care sales-i showed him we didrdquo
- Ron Dahlhaus Buy Wise Auto Parts
ldquoWersquove closed off the financial year 58 up on the previous year and attribute this directly to sales-i and their sales performance softwarerdquo
- Larry Sexton Office 360ordm
We are the leader in sales performance for distributors and wholesalers
Donrsquot wage a price war why discounting is killing your business
E X A M P L E S O F
B R A N D S T H AT
D O N rsquo T D I S C O U N T
9wwwsales-icom
Donrsquot wage a price war why discounting is killing your business
Technology giant Apple has never offered a discount Yet
come iPhone 8 release day you can guarantee people
around the world will be camping overnight to be first in
line to buy one at list price (or even more on eBay when
stock is low) Apple products have become a cult item that
customers are willing to pay for From the experience in
store to aftercare and support Apple doesnrsquot offer discounts
to its customers because they just donrsquot need to
ldquoItrsquos up to us to convince people to maybe spend a little
more for a materially better experience of product And we
think that people will do that if the product is great and if itrsquos
messaged appropriatelyrdquo
- TIM COOK CEO OF APPLE
Apple
Luxury fashion brand Louis Vuitton will never offer a
discount Having faced near bankruptcy in the early 1970s
due to private franchisees marking up prices on their luxury
handbags and luggage and pocketing the difference After
a swift management shakeup Louis Vuitton became a
vertically integrated company that today owns their entire
supply chain from factories to shop floors in department
stores Customers canrsquot purchase Louis Vuitton products
anywhere but official outlets or authorized concessions ndash
making it impossible to discount
ldquoControlling the channel meant you controlled the price
Without a middleman margins are higher offering a
plumper profit cushion during downturns This practice also
confers exclusivity since you can buy a given product only
from an authorized dealer where price is fixedrdquo
- HENRY RECAMIER 1977 OWNER OF LOUIS VUITTON
Louis Vuitton
Business magnate founder of Tesla Space X SolarCity
and Paypal and all round nice guy Elon Musk is one of the
greatest and most humble businessmen of our generation
Musk recently penned a lengthy email to his Tesla team
about the very reasons why they never offer a discount on
their cars Itrsquos worth the read We promise
ldquoThe acid test is that if you canrsquot explain to a customer who
paid full price why another customer didnrsquot without being
embarrassed then it is not rightrdquo
- ELON MUSK FOUNDER OF TESLA (AND OTHERS)
Tesla
10
STATISTICS
wwwsales-icom
Donrsquot wage a price war why discounting is killing your business
67
40
1
8
Offering discounts means poor loyalty and loyal customers spend 67 more than new ones with
repeat purchases
Source wwwinccom
Promotions often have little impact on buyers ndash 40 would have bought an item anyway promotion or no promotion
Source wwwinspectorinsightcom
A 1 pricing discount results in a decrease of 8 in operating profits for the average company
Source McKinsey amp Company
If volumes remained stable a price rise of 1 would an 8 increase in operating profits
Source McKinsey amp Company
A pricing strategy is something thatrsquos often decided without
much thought within many businesses Itrsquos not an easy task
to get right but business owners often fail to anticipate how
quickly profit margins can disappear when they give away
a harmless concession here and there such as 10 off their
usual list price
For a business with a 20 gross margin a 10 discount gives
away 50 of their profits as raw materials and operational
costs remain the same Is a 10 discount going to increase
sales by 50 Probably not
Donrsquot wage a price war why discounting is killing your business
11wwwsales-icom
How discounting eats into profits
Costs
80Costs
80
Profit
20
Discount 10
Profit 10
In short discounting is bad Adding value is good Knowing
your customers inside out is key to providing an experience
that will keep your customers coming back for more and
negating the need to cut your prices just to get that elusive
ldquoyesrdquo
Be more proactive in your sales approach and pre-empt your
customerrsquos next purchasing move Using sales technology
can help you to be more proactive yoursquoll be able to avoid
those awkward discount conversations altogether This kind
of software can help you to get ahead of your competition
before they even have a chance to undercut you and start
a price war Whatrsquos more if yoursquore being more proactive
towards your customers theyrsquoll trust you more and in turn
become more loyal If this is the case even a low price wonrsquot
be effective in securing their business
Some of the most successful companies in history have
never once offered a discount and theyrsquove stayed true to
their morals A quality product that will help improve or
better any aspect of your buyersrsquo lives shouldnrsquot need to be
discounted
12
Donrsquot wage a price war why discounting is killing your business
wwwsales-icom
TO S U M M A R I Z E
ABOUT ldquoIt is a no brainer for distributors and the personal service is outstandingrdquo
sales-i is sales performance software designed to make
every sales call more personal and profitable
sales-i enables sales professionals to clearly identify and
target high quality sales opportunities within their current
customer base Equipped with customer buying behavior
alerts salespeople can make insightful personalized
quick business decisions realizing repeat sales reduced
customer attrition and maximized profit margins as a result
sales-i will change the way you sell Get in touch for a free
online demonstration and judge our software for yourself
tellmemoresales-icom
wwwsales-icom
- Scott Bennett Bennett Auto Supply
ldquoOne call using sales-i yielded a $5000 order from an account that was leaving us for a competitor he felt we did not care sales-i showed him we didrdquo
- Ron Dahlhaus Buy Wise Auto Parts
ldquoWersquove closed off the financial year 58 up on the previous year and attribute this directly to sales-i and their sales performance softwarerdquo
- Larry Sexton Office 360ordm
We are the leader in sales performance for distributors and wholesalers
Donrsquot wage a price war why discounting is killing your business
9wwwsales-icom
Donrsquot wage a price war why discounting is killing your business
Technology giant Apple has never offered a discount Yet
come iPhone 8 release day you can guarantee people
around the world will be camping overnight to be first in
line to buy one at list price (or even more on eBay when
stock is low) Apple products have become a cult item that
customers are willing to pay for From the experience in
store to aftercare and support Apple doesnrsquot offer discounts
to its customers because they just donrsquot need to
ldquoItrsquos up to us to convince people to maybe spend a little
more for a materially better experience of product And we
think that people will do that if the product is great and if itrsquos
messaged appropriatelyrdquo
- TIM COOK CEO OF APPLE
Apple
Luxury fashion brand Louis Vuitton will never offer a
discount Having faced near bankruptcy in the early 1970s
due to private franchisees marking up prices on their luxury
handbags and luggage and pocketing the difference After
a swift management shakeup Louis Vuitton became a
vertically integrated company that today owns their entire
supply chain from factories to shop floors in department
stores Customers canrsquot purchase Louis Vuitton products
anywhere but official outlets or authorized concessions ndash
making it impossible to discount
ldquoControlling the channel meant you controlled the price
Without a middleman margins are higher offering a
plumper profit cushion during downturns This practice also
confers exclusivity since you can buy a given product only
from an authorized dealer where price is fixedrdquo
- HENRY RECAMIER 1977 OWNER OF LOUIS VUITTON
Louis Vuitton
Business magnate founder of Tesla Space X SolarCity
and Paypal and all round nice guy Elon Musk is one of the
greatest and most humble businessmen of our generation
Musk recently penned a lengthy email to his Tesla team
about the very reasons why they never offer a discount on
their cars Itrsquos worth the read We promise
ldquoThe acid test is that if you canrsquot explain to a customer who
paid full price why another customer didnrsquot without being
embarrassed then it is not rightrdquo
- ELON MUSK FOUNDER OF TESLA (AND OTHERS)
Tesla
10
STATISTICS
wwwsales-icom
Donrsquot wage a price war why discounting is killing your business
67
40
1
8
Offering discounts means poor loyalty and loyal customers spend 67 more than new ones with
repeat purchases
Source wwwinccom
Promotions often have little impact on buyers ndash 40 would have bought an item anyway promotion or no promotion
Source wwwinspectorinsightcom
A 1 pricing discount results in a decrease of 8 in operating profits for the average company
Source McKinsey amp Company
If volumes remained stable a price rise of 1 would an 8 increase in operating profits
Source McKinsey amp Company
A pricing strategy is something thatrsquos often decided without
much thought within many businesses Itrsquos not an easy task
to get right but business owners often fail to anticipate how
quickly profit margins can disappear when they give away
a harmless concession here and there such as 10 off their
usual list price
For a business with a 20 gross margin a 10 discount gives
away 50 of their profits as raw materials and operational
costs remain the same Is a 10 discount going to increase
sales by 50 Probably not
Donrsquot wage a price war why discounting is killing your business
11wwwsales-icom
How discounting eats into profits
Costs
80Costs
80
Profit
20
Discount 10
Profit 10
In short discounting is bad Adding value is good Knowing
your customers inside out is key to providing an experience
that will keep your customers coming back for more and
negating the need to cut your prices just to get that elusive
ldquoyesrdquo
Be more proactive in your sales approach and pre-empt your
customerrsquos next purchasing move Using sales technology
can help you to be more proactive yoursquoll be able to avoid
those awkward discount conversations altogether This kind
of software can help you to get ahead of your competition
before they even have a chance to undercut you and start
a price war Whatrsquos more if yoursquore being more proactive
towards your customers theyrsquoll trust you more and in turn
become more loyal If this is the case even a low price wonrsquot
be effective in securing their business
Some of the most successful companies in history have
never once offered a discount and theyrsquove stayed true to
their morals A quality product that will help improve or
better any aspect of your buyersrsquo lives shouldnrsquot need to be
discounted
12
Donrsquot wage a price war why discounting is killing your business
wwwsales-icom
TO S U M M A R I Z E
ABOUT ldquoIt is a no brainer for distributors and the personal service is outstandingrdquo
sales-i is sales performance software designed to make
every sales call more personal and profitable
sales-i enables sales professionals to clearly identify and
target high quality sales opportunities within their current
customer base Equipped with customer buying behavior
alerts salespeople can make insightful personalized
quick business decisions realizing repeat sales reduced
customer attrition and maximized profit margins as a result
sales-i will change the way you sell Get in touch for a free
online demonstration and judge our software for yourself
tellmemoresales-icom
wwwsales-icom
- Scott Bennett Bennett Auto Supply
ldquoOne call using sales-i yielded a $5000 order from an account that was leaving us for a competitor he felt we did not care sales-i showed him we didrdquo
- Ron Dahlhaus Buy Wise Auto Parts
ldquoWersquove closed off the financial year 58 up on the previous year and attribute this directly to sales-i and their sales performance softwarerdquo
- Larry Sexton Office 360ordm
We are the leader in sales performance for distributors and wholesalers
Donrsquot wage a price war why discounting is killing your business
10
STATISTICS
wwwsales-icom
Donrsquot wage a price war why discounting is killing your business
67
40
1
8
Offering discounts means poor loyalty and loyal customers spend 67 more than new ones with
repeat purchases
Source wwwinccom
Promotions often have little impact on buyers ndash 40 would have bought an item anyway promotion or no promotion
Source wwwinspectorinsightcom
A 1 pricing discount results in a decrease of 8 in operating profits for the average company
Source McKinsey amp Company
If volumes remained stable a price rise of 1 would an 8 increase in operating profits
Source McKinsey amp Company
A pricing strategy is something thatrsquos often decided without
much thought within many businesses Itrsquos not an easy task
to get right but business owners often fail to anticipate how
quickly profit margins can disappear when they give away
a harmless concession here and there such as 10 off their
usual list price
For a business with a 20 gross margin a 10 discount gives
away 50 of their profits as raw materials and operational
costs remain the same Is a 10 discount going to increase
sales by 50 Probably not
Donrsquot wage a price war why discounting is killing your business
11wwwsales-icom
How discounting eats into profits
Costs
80Costs
80
Profit
20
Discount 10
Profit 10
In short discounting is bad Adding value is good Knowing
your customers inside out is key to providing an experience
that will keep your customers coming back for more and
negating the need to cut your prices just to get that elusive
ldquoyesrdquo
Be more proactive in your sales approach and pre-empt your
customerrsquos next purchasing move Using sales technology
can help you to be more proactive yoursquoll be able to avoid
those awkward discount conversations altogether This kind
of software can help you to get ahead of your competition
before they even have a chance to undercut you and start
a price war Whatrsquos more if yoursquore being more proactive
towards your customers theyrsquoll trust you more and in turn
become more loyal If this is the case even a low price wonrsquot
be effective in securing their business
Some of the most successful companies in history have
never once offered a discount and theyrsquove stayed true to
their morals A quality product that will help improve or
better any aspect of your buyersrsquo lives shouldnrsquot need to be
discounted
12
Donrsquot wage a price war why discounting is killing your business
wwwsales-icom
TO S U M M A R I Z E
ABOUT ldquoIt is a no brainer for distributors and the personal service is outstandingrdquo
sales-i is sales performance software designed to make
every sales call more personal and profitable
sales-i enables sales professionals to clearly identify and
target high quality sales opportunities within their current
customer base Equipped with customer buying behavior
alerts salespeople can make insightful personalized
quick business decisions realizing repeat sales reduced
customer attrition and maximized profit margins as a result
sales-i will change the way you sell Get in touch for a free
online demonstration and judge our software for yourself
tellmemoresales-icom
wwwsales-icom
- Scott Bennett Bennett Auto Supply
ldquoOne call using sales-i yielded a $5000 order from an account that was leaving us for a competitor he felt we did not care sales-i showed him we didrdquo
- Ron Dahlhaus Buy Wise Auto Parts
ldquoWersquove closed off the financial year 58 up on the previous year and attribute this directly to sales-i and their sales performance softwarerdquo
- Larry Sexton Office 360ordm
We are the leader in sales performance for distributors and wholesalers
Donrsquot wage a price war why discounting is killing your business
A pricing strategy is something thatrsquos often decided without
much thought within many businesses Itrsquos not an easy task
to get right but business owners often fail to anticipate how
quickly profit margins can disappear when they give away
a harmless concession here and there such as 10 off their
usual list price
For a business with a 20 gross margin a 10 discount gives
away 50 of their profits as raw materials and operational
costs remain the same Is a 10 discount going to increase
sales by 50 Probably not
Donrsquot wage a price war why discounting is killing your business
11wwwsales-icom
How discounting eats into profits
Costs
80Costs
80
Profit
20
Discount 10
Profit 10
In short discounting is bad Adding value is good Knowing
your customers inside out is key to providing an experience
that will keep your customers coming back for more and
negating the need to cut your prices just to get that elusive
ldquoyesrdquo
Be more proactive in your sales approach and pre-empt your
customerrsquos next purchasing move Using sales technology
can help you to be more proactive yoursquoll be able to avoid
those awkward discount conversations altogether This kind
of software can help you to get ahead of your competition
before they even have a chance to undercut you and start
a price war Whatrsquos more if yoursquore being more proactive
towards your customers theyrsquoll trust you more and in turn
become more loyal If this is the case even a low price wonrsquot
be effective in securing their business
Some of the most successful companies in history have
never once offered a discount and theyrsquove stayed true to
their morals A quality product that will help improve or
better any aspect of your buyersrsquo lives shouldnrsquot need to be
discounted
12
Donrsquot wage a price war why discounting is killing your business
wwwsales-icom
TO S U M M A R I Z E
ABOUT ldquoIt is a no brainer for distributors and the personal service is outstandingrdquo
sales-i is sales performance software designed to make
every sales call more personal and profitable
sales-i enables sales professionals to clearly identify and
target high quality sales opportunities within their current
customer base Equipped with customer buying behavior
alerts salespeople can make insightful personalized
quick business decisions realizing repeat sales reduced
customer attrition and maximized profit margins as a result
sales-i will change the way you sell Get in touch for a free
online demonstration and judge our software for yourself
tellmemoresales-icom
wwwsales-icom
- Scott Bennett Bennett Auto Supply
ldquoOne call using sales-i yielded a $5000 order from an account that was leaving us for a competitor he felt we did not care sales-i showed him we didrdquo
- Ron Dahlhaus Buy Wise Auto Parts
ldquoWersquove closed off the financial year 58 up on the previous year and attribute this directly to sales-i and their sales performance softwarerdquo
- Larry Sexton Office 360ordm
We are the leader in sales performance for distributors and wholesalers
Donrsquot wage a price war why discounting is killing your business
In short discounting is bad Adding value is good Knowing
your customers inside out is key to providing an experience
that will keep your customers coming back for more and
negating the need to cut your prices just to get that elusive
ldquoyesrdquo
Be more proactive in your sales approach and pre-empt your
customerrsquos next purchasing move Using sales technology
can help you to be more proactive yoursquoll be able to avoid
those awkward discount conversations altogether This kind
of software can help you to get ahead of your competition
before they even have a chance to undercut you and start
a price war Whatrsquos more if yoursquore being more proactive
towards your customers theyrsquoll trust you more and in turn
become more loyal If this is the case even a low price wonrsquot
be effective in securing their business
Some of the most successful companies in history have
never once offered a discount and theyrsquove stayed true to
their morals A quality product that will help improve or
better any aspect of your buyersrsquo lives shouldnrsquot need to be
discounted
12
Donrsquot wage a price war why discounting is killing your business
wwwsales-icom
TO S U M M A R I Z E
ABOUT ldquoIt is a no brainer for distributors and the personal service is outstandingrdquo
sales-i is sales performance software designed to make
every sales call more personal and profitable
sales-i enables sales professionals to clearly identify and
target high quality sales opportunities within their current
customer base Equipped with customer buying behavior
alerts salespeople can make insightful personalized
quick business decisions realizing repeat sales reduced
customer attrition and maximized profit margins as a result
sales-i will change the way you sell Get in touch for a free
online demonstration and judge our software for yourself
tellmemoresales-icom
wwwsales-icom
- Scott Bennett Bennett Auto Supply
ldquoOne call using sales-i yielded a $5000 order from an account that was leaving us for a competitor he felt we did not care sales-i showed him we didrdquo
- Ron Dahlhaus Buy Wise Auto Parts
ldquoWersquove closed off the financial year 58 up on the previous year and attribute this directly to sales-i and their sales performance softwarerdquo
- Larry Sexton Office 360ordm
We are the leader in sales performance for distributors and wholesalers
Donrsquot wage a price war why discounting is killing your business
ABOUT ldquoIt is a no brainer for distributors and the personal service is outstandingrdquo
sales-i is sales performance software designed to make
every sales call more personal and profitable
sales-i enables sales professionals to clearly identify and
target high quality sales opportunities within their current
customer base Equipped with customer buying behavior
alerts salespeople can make insightful personalized
quick business decisions realizing repeat sales reduced
customer attrition and maximized profit margins as a result
sales-i will change the way you sell Get in touch for a free
online demonstration and judge our software for yourself
tellmemoresales-icom
wwwsales-icom
- Scott Bennett Bennett Auto Supply
ldquoOne call using sales-i yielded a $5000 order from an account that was leaving us for a competitor he felt we did not care sales-i showed him we didrdquo
- Ron Dahlhaus Buy Wise Auto Parts
ldquoWersquove closed off the financial year 58 up on the previous year and attribute this directly to sales-i and their sales performance softwarerdquo
- Larry Sexton Office 360ordm
We are the leader in sales performance for distributors and wholesalers
Donrsquot wage a price war why discounting is killing your business
Top Related