Business Management · Issue 34 · 2 March 2026

When a customer asks for a discount

Caving on price teaches customers exactly the wrong lesson.

Sooner or later, a customer asks for a discount. How you handle that moment matters more than the few dollars at stake — because it sets the terms of the whole relationship and quietly trains your customers in what to expect. Cave instantly, and you've just taught them your prices aren't real, and that pushing gets results.

The instinct, especially when you want the sale, is to drop the price to close the deal. But a discount given without anything in return signals that your original price was inflated — and it attracts exactly the price-focused customers who'll keep grinding you down. Worse, it's unfair to the customers who paid full freight.

A stronger approach: if you give on price, get something in return — a bigger commitment, a longer term, a reduced scope, a testimonial, a referral. Or hold your price and reinforce the value instead of apologising for the cost. "Here's exactly what you get for that" is a more confident answer than a nervous discount. The customers worth having respect a business that knows its worth.

Discounting isn't always wrong. Discounting reflexively, out of fear, almost always is.

Holding your value in pricing and negotiation is part of the Grow course.

Explore the Grow course

Or start with the free Business Stage Assessment.

Annie

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