In this episode, Paul shares why SaaS/software sellers use discounts to negotiate.

Show Notes:

“Profit margins in this industry are at crack levels. When your margins are this high, it’s easier to give up a little profit. But that’s not the main reason why they’re using discounts.”

There are three primary reasons sellers use discounts.

Lack of urgency in adopting your solution. Your buyer is already using something that is probably okay. There’s no sense of urgency to move the process forward. 

The seller also hasn’t created enough pain in the buyer’s world. Dig for root canal type pain. 

“People only change when the pain of not changing is greater than the pain of changing.”

Other times cheap competitors establish anchor prices in the market. 

Pressure points mitigate the importance of price. Identity their pressure and take the focus off of the price. 

Free is the worst four-letter F-word you can say in sales. 

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