Your sales reps will always use the easiest tools available, and when they see discounts being given they’ll start to abuse them. And when the prospect asks about pricing, the sales rep preemptively goes: "Well, this is our price. Worse than that, your sales team will start offering discounts without even being asked! I’ve seen this happen so many times at SaaS companies and it drives me crazy.Ī sales rep is talking to a prospect, they qualify them, there's a match, they can really deliver value. They’ll just give the prospect information and then offer them whatever they want. Instead of going out and selling on your solution’s value and your brand, your salespeople will become transactional. When you give discounts, you’re setting the wrong example for your team. Discount culture creates a weak sales force (and a weak brand) And you can’t have either if you’re just trying to be the cheapest. Instead, I truly believe the winning SaaS companies of today and tomorrow will win on value and they’ll win on brand.
In SaaS, the only way to win on price is to be free. The market gets so crowded and undifferentiated that customers will only pick either the cheapest option or the brand they know and trust. We’ve seen this exact situation happen in the consumer goods space. When you offer discounts, that’s all people think about your company. Want to get better at handling discount requests and other objections? Get our free objection management template! You’ve positioned your company as being the cheapest solution, rather than the most valuable. Just to win the business.” The problem is, once you start down this path, it’s almost impossible to get off it. And somewhere in the negotiation, that prospect is going to ask you for a discount.Īnd so you think “If this customer is willing to offer their solution at that price, I can too, or even a little lower. You know that when a prospect is talking to you, they’re also talking to your competition. Let’s start off with the obvious: The SaaS landscape today is more crowded and competitive than ever. Please refer to our Privacy Policy.SaaS companies today don’t win on being cheap. Email disclaimer: Sign up to receive communication on services, products and special offers.
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