Discounting
Discounting is the practice of reducing the standard price of a product or service to close a deal, reward loyalty, or meet competitive pressure.
Discounting is a common sales tactic used to accelerate deal closure, incentivize larger commitments, or retain at-risk customers. While effective for short-term revenue, uncontrolled discounting erodes margins and devalues the product over time.
Example: A SaaS sales rep offers a 15% discount to a prospect who is evaluating a competitor, framing it as an end-of-quarter promotion. The discount closes the deal, but the company tracks the impact on average selling price across all deals that quarter.
