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The Hidden Cost of Discounts
They’re killing your pipeline quietly
Discounts look harmless. Harmless to the deal. Harmless to the quarter. Harmless to the rep who thinks shaving 10% off is “no big deal.” But here’s the truth: discounts destroy more than margin they destroy discipline.
When discounts become the easy button, reps stop selling value. They stop learning how to defend pricing. They stop pushing prospects to see ROI. Instead, they teach buyers one dangerous lesson: wait, and we’ll fold. That lesson doesn’t just kill today’s deal it echoes into every future conversation with that account and beyond.
Worse? Discounts poison your pipeline. They make deals appear stronger than they are, padding forecasts with “sure things” that only close if finance takes the hit. Over time, reps lean on price instead of process. The result? Weak pipelines, soft forecasts, and teams that never sharpen their skills.
Discounts don’t just cost points on margin they cost confidence, control, and culture.
Action Steps: Stop the Discount Spiral
Audit the Last Quarter – Count how many deals closed with discounts. What’s the real margin impact?
Set Hard Guardrails – Discounts require approval. No exceptions. Make reps defend the ask.
Train on Value Defense – Roleplay objection handling until reps can sell ROI without cutting price.
Flip the Script – Teach reps to add value (faster delivery, extra onboarding, extended support) instead of slicing price.
Track Deal Quality – Flag every deal closed with a discount and compare lifetime value vs. full-price customers.
Discounts aren’t harmless they’re the silent killer in your pipeline. The best teams don’t sell cheaper. They sell sharper.
