Why discounting too soon is bad for profit

The customer was tired. He had already tried five suppliers, each telling him the same thing:

“Out of stock”  Then, finally, he walked into Supplier #6. 

Why Probing Before Discounting Can Save Your Profits.

“Do you have this product?” he asked.

“Yes, we do. It’s R900,” said the salesperson.

“Too expensive. Others are cheaper.”

In a heartbeat, the salesperson offered a 20% discount. R720. Deal done.

But the sales director had been watching. He politely asked the customer a few questions:

• Did he need credit terms? No—he always paid cash.

• Would technical advice help? No—he had to use the item specified in the job.

• Same-day delivery? Useful, but not this time.

• Then the golden question: “Do you know we keep 100 meters of this product in stock at all times?”

The customer’s eyes lit up: “I’ve been to five places. You’re the only one who had it!”

Let's pause for a second: Would the salesperson have discounted R180 so easily if he knew the customer’s urgency and scarcity?

Lesson: Before you drop your price, probe for value. The thing you take for granted might be exactly why the customer is ready to say yes—even at full price.