The first temptation is to offer a discount. But at MB&L, we believe that such a decision carries deep consequences that often go against the very purpose of a consulting engagement. Because when we offer discounts, we not only reduce our margin—we also diminish the perceived value of what we deliver.
Why Are Discounts Problematic?
Offering a discount might seem like a commercial gesture, a way to close the deal faster or “support the client.” But in practice:
– It devalues our proposal. If we agree to lower the price without reviewing the scope, the implicit message is that the work we proposed was worth less than stated. It suggests the original price was inflated or arbitrary.
– It affects perceived quality. In professional services, price is strongly tied to perceived quality. Lowering it may cause the client to doubt the depth or actual impact of the work.
– It weakens our position in future negotiations. If we quickly agree to a discount, it becomes difficult to charge full price in future projects with the same client.
– It reduces the client’s commitment. Interestingly, when clients pay less than expected, they also tend to engage less. That affects implementation, results, and ultimately the perceived value of the engagement.
– It erodes internal standards. While it may seem like a one-time decision, consistently offering discounts gradually lowers the internal bar for how much our work is worth. And that’s harder to recover than a lost client.
– It sends the wrong signals to the market. Every discount creates a new pricing benchmark. An existing client may feel upset to learn that a new client paid less for similar work. A prospect may assume it’s best to wait—because eventually, we’ll offer a lower price. By discounting, we don’t just affect this sale: we undermine the next ones too.
The Alternative: Review the Scope
Instead of yielding to a discount request, we recommend a more professional approach: jointly reviewing the scope of the proposal.
It’s not about saying “no” to the client. It’s about saying: “We understand there are budget constraints. Let’s explore how we can adapt without compromising value.”
This may involve:
– Reducing deliverables or project stages.
– Focusing on a specific business unit instead of the whole organization.
– Reassigning certain tasks to the client’s team, under our supervision.
– Breaking the project into phases with separate budgets.
This approach has a major benefit: it preserves the value of what we offer. It makes it clear that pricing is directly tied to effort, work, and results. And it allows us to adjust the proposal without compromising its internal logic or impact.
In Summary
Discounts may be an easy answer—but they come at a cost. They don’t just affect profitability: they undermine the positioning we seek as consultants—serious professionals with proven methodologies and real transformational capacity.
When a client challenges the price, don’t lower the value. Let’s review the scope, adjust the effort, and protect the impact. Because in the end, that’s what builds lasting relationships and a solid reputation.
If you have any questions or comments about this or any other topic related to Consultative Selling, please don’t hesitate to contact us — we’ll be happy to assist you.
