Why a 10% Discount is Negotiating Against Yourself
Chapters
Click to jump to section
Speakers
Key Takeaways
A 10% discount on a job can reduce your gross profit by 20% or more, not just 10%, because your costs remain fixed.
Understand your true costs: suppliers, labor, insurance, and overhead don't decrease when you offer a discount, meaning the reduction comes directly from your profit.
To recover lost profit from a discount, you'll need to sell an additional 2-3 times the discounted amount in new work, depending on your profit margins.
Don't discount out of fear or discomfort when a client pushes back; know your numbers and communicate your value confidently.
Use strategic discounting only for specific reasons like filling production gaps or rewarding loyal customers, not as a standard response to price inquiries.
Price your jobs correctly from the start, articulate your value clearly, and protect your gross profit fiercely to ensure business health.
Utilize tools like a 'sales leak scorecard' to identify and fix issues in your sales process before resorting to discounting to close deals.
Want the full experience?
Join the Inner Circle for full access to every episode, AI-powered insights, personalized coaching, and a network of industry leaders.
Join Inner Circle →