Use discounts right in sales

A discount often feels like the easiest path to closing a deal. That is exactly what makes it dangerous. Cave in too quickly and you undermine both your margin and your credibility. Using discounts well means treating them as a deliberate tool, not a reflex.

What a hasty discount does

Every discount sends a message. If you drop your price at the first request, you signal that the original number was just a bargaining position. That invites further demands, not only from this customer but as an expectation across the board. On top of that, every percentage point you give away hits your margin harder than most people think.

The question, then, is not how big the discount should be, but whether one is needed at all.

If you do discount, do it right

Never without something in return: a longer term, larger volume, prepayment or a reference.
Justified, not arbitrary: a reason people can follow keeps your price credible.
Added value over a price cut: an extra service often costs you less than a reduction in price.
Know your limits: at what point is the deal simply no longer worth it?

A discount without anything in return is not a courtesy. It is an admission that the price was never meant seriously.

An example

One provider replaced blanket discounts with a simple rule: a discount only in exchange for a longer contract term. The result was a double win. The margin stayed stable, and customer retention rose, because many were happy to accept the longer term.

Keep an overview of your terms

If you record the discounts you grant and the reasons behind them, you quickly see where too much is being given away. A CRM makes such patterns visible and helps you hold a consistent pricing line.

Advanzo helps you do exactly that: an AI-powered, deliberately simple CRM for Swiss SMEs, with data hosted in Switzerland, built on the principle of "removing friction rather than adding it". "Deal scoring" and summaries help you keep the value in view. You can start for free, no credit card.