Salespeople often encounter difficult negotiations with customers due to a legacy of having made frequent discounts off their list or “standard” price. The cycle has played out thousands of times… if a supplier refuses the pricing exception, or tries to hold the line, the customer threatens to go to the competition – then the supplier caves and gives the price concession (and rewards their toughest, nastiest customers with the best pricing!). Sales managers have (an understandable) fear of losing customers, especially those they have had for a long time and had to fight hard to win in the first place. The easier choice often seems to be to grant the exception and land the deal, keep the customer, and hope to hold the line the next time. But, do pricing exceptions only impact the negotiation at hand and short-term margins, or do the ramifications go much deeper?
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