It was a morning of deal reviews. The sales person was reviewing the deals expected to close by the end of the quarter
"Deal after deal, there were differing issues that had to be addressed for each deal. We developed action plans to address them. But I started noticing a problem, 100% of the deals required a 'discount.'
'What's the problem, why do we need to discount in each of these deals?' I asked. 'Do we have a pricing problem? Or is it something else?'
The sales person immediately responded, 'Yes we have a pricing problem, we need to substantively reduce our prices on everything, I can't compete without lower prices..'
But then we started to look at some of the data, we analyzed all the deals that had been won and lost in the past 2 years. Fewer than 10% of the deals won required a discount (outside of normal volume discounts or quarter end incentive programs)..."
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