Why discounting is usually a pricing problem

Heavy discounting is rarely a sales-discipline failure. More often it is the visible symptom of a price that was never properly grounded.

By Steve 1 min read
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Most businesses that discount heavily do not have a discounting problem. They have a pricing problem that discounting is being asked to solve. The pattern underneath the discount When a price is set without a clear view of what the customer is actually buying, the sales conversation has nowhere to go when it stalls. Price becomes the only lever anyone can reach for, and the discount becomes routine rather than exceptional. The mechanism is straightforward. A discount takes its cost entirely from margin, so a business running at a 30%…

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Important: General information only. Rialto Bridge articles describe patterns and considerations that may apply to a business; they are not financial, legal, tax or accounting advice, and they take no account of your particular circumstances. Consider your own situation and seek advice from a qualified professional before acting.

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