For some reason, salespeople are quick to believe that somehow cutting a price is not going to impact their company much. Big mistake! When we cut a price to secure a sale, two big mistakes are being made.
The first mistake is the loss of profit. Unless there is something removed from what is being sold, any reduction in price comes right out of profit. No company can operate very long without making a profit. It’s like asking an employee to work without being paid. The idea is simply not sustainable.
The second mistake is the customer receiving the discounted price will now view the lower price as the price point. Any attempt later on by the salesperson to get the price back to the regular price will be viewed by the customer as a price increase. Too often I see a discounted price given in order to close the first sale
