3 Simple Ways To Discourage Sales Discounting

No. 3: Manage The Sales Pipeline Carefully

It sounds deceptively simple, but Sovereign's management team watches the information being added into the company's Salesforce.com systems very carefully. Yes, it has invested in a formal system to build more visibility into these processes.

If the gross profit for a pending deal drops below a certain level, that triggers an in-depth discussion with the salesperson leading the opportunity. The implications of walking away versus biting the bullet for competitive reasons are explored, and a group decision is made about whether or not it makes sense to move forward. "I'm not sure you could have the same discussion if you're running a product-centric business," Barkley said.

By the way, Sovereign also hires very carefully. Many of its sales representatives have at least a dozen years of experience, and they know where Sovereign stands when it comes to remaining firm on pricing. "If they're doing their job, they won't have to drop the price," he said.