“Sir, your competitor is giving us the same thing for 15% less.”
If you have been in sales long enough, you have heard some version of this sentence.
And what happens next?
The salesperson calls the manager. The manager checks the margins. A few numbers are discussed and finally someone says, “Okay, let’s see how much discount we can give.”
I have seen this happen many times, and it always makes me wonder: Why is discounting our first response to a price objection?
Yes, sometimes your price may genuinely be high. Sometimes the customer has a fixed budget. But many times, the problem isn’t your price at all.
The customer simply hasn’t understood why your product or service is worth that price.
Price kam karna easy hai. Value samjhana sales hai.
And that is where the real conversation begins.
When a customer says, “Your price is too high”
Don’t immediately start defending your price.
Ask a few questions first.
“What are you comparing us with?”
“Apart from the price, is there anything else holding you back?”
“If the price was the same, which option would you prefer?”
Simple questions like these can tell you whether you’re dealing with a genuine budget issue or a sales objection.
For example, suppose your customer says another company is offering a similar service for ₹80,000 while yours costs ₹1 lakh. On paper, the choice looks simple.
But what if your service reduces breakdowns, provides faster support or saves the customer’s team several hours every month?
That ₹20,000 difference suddenly needs to be looked at differently.
This is where value selling becomes important.
If the customer only sees the price, something is missing
Customers will naturally compare prices when they cannot see enough difference between two options.
Think about your own buying decisions. You don’t always buy the cheapest phone, car, hotel room or even cup of coffee. You pay more when you believe you’re getting something that matters to you.
Business customers aren’t very different.
A good sales conversation helps the customer understand what they are actually paying for. Maybe your product saves time. Maybe it reduces risk. Maybe your after-sales support is better. Perhaps your solution will help them make more money over the next three years.
If your salesperson hasn’t understood what matters to that particular customer, none of this will come through.
Then price becomes the only thing left to discuss.
Discounting can become a bad sales habit
There is another problem with giving discounts too quickly.
Customers learn.
If asking once gets them 10% off, why wouldn’t they ask again?
More importantly, your sales team learns too.
Instead of getting better at handling price objections, asking questions and explaining value, they start depending on discounts to close deals.
Slowly, “What does this customer really need?” becomes “How much discount will close this?”
That’s not a healthy habit for any sales team.
It affects your margins, but it also affects the confidence of your salespeople.
Does that mean you should never give a discount?
Of course not.
Discounts are part of business and there can be very good reasons for giving one.
A customer may place a much larger order. They may sign a longer contract. They may agree to faster payment terms. Perhaps reducing the scope allows you to offer a better price.
The important thing is that a discount should be part of a sales negotiation, not an automatic reaction.
If you’re giving something, ask what you’re receiving in return.
That small change makes the conversation much healthier.
Sometimes, walking away is also good sales
This is difficult when monthly targets are staring at you.
But every sale is not necessarily a good sale.
If you keep reducing your price just to win business, at some point you may have a customer but very little profit.
Worse, you’ve started the relationship by teaching the customer that your price is always negotiable.
A confident salesperson knows the value of the solution they are selling. They will negotiate when it makes business sense, but they also know when to say, “At this price, we may not be the right fit.”
You don’t need to win every deal.
You need to win the right deals.
Before offering your next discount…
The next time a customer tells you, “Your price is too high,” don’t reach for the calculator immediately.
Get curious.
Ask what they’re comparing you with. Understand what’s really bothering them. Go back to the problem they’re trying to solve and help them see the value of your solution.
Sometimes you will discover that the customer genuinely needs a lower price.
But sometimes you’ll discover that they never needed a discount.
They simply needed a better reason to buy.
And knowing the difference is one of the most important sales negotiation skills a salesperson can develop.
FAQs
- How should a salesperson handle price objections?
Instead of immediately offering a discount, first understand why the customer feels the price is high. Ask what they are comparing your offer with and whether price is the real concern. Often, better questioning and clearer value communication can resolve a price objection without reducing the price. - What is value selling?
Value selling focuses on what the customer gains from your product or service rather than only its features or price. This could be higher revenue, lower costs, less risk, better productivity or simply a problem being solved more effectively. - How can sales teams reduce unnecessary discounting?
Sales teams need to become better at understanding customer needs, handling price objections, communicating value and negotiating with confidence. Sales managers should also understand why a discount is being requested before approving it. - Can sales training help teams handle price objections better?
Yes. Practical sales training can help salespeople ask better questions, understand the real reason behind objections, communicate value and negotiate without depending on discounts to close every deal. - Does Rajeev Narang conduct sales training on negotiation and value selling?
Yes. Rajeev Narang works with sales teams and business leaders on practical areas such as sales negotiation, value selling, customer conversations, objection handling and improving overall sales performance. His approach focuses on situations salespeople face in real customer conversations rather than sales theory alone. - How can I work with Rajeev Narang to improve my sales team’s performance?
Organizations looking to improve sales performance can engage Rajeev Narang for sales training, sales coaching and business transformation interventions. Programs can focus on specific challenges such as negotiation, sales conversations, sales management, customer handling and building stronger sales capabilities.
