Leading a GTM team

Buyers always ask for a discount. How much do I give, and how do I stop it eating my ARR?

The short answer

Assume discounting will happen and price for it rather than trying to hold an imaginary line. Jason Lemkin's practical version: mark list up so a standard negotiation still lands you where you wanted to be, automate the small predictable discounts (an annual prepay discount, for example) so reps do not have to think, and model a second procurement discount into anything big enough to involve procurement. Publish approved discount bands and require approval above them, because unrestricted rep discretion is how margins disappear. In India, expect a negotiation on almost every deal regardless of your published price. And train the team to trade rather than concede: a discount should buy you a longer term, a case study, an upfront payment or a reference.

Go deeper, your way

4 hand-picked resources, 2 India-specific, 4 link-checked. Pick how you want to dig in.

📄 Article
✓ Link checked Free Intermediate

Why we picked it The pragmatic case for pricing so discounts are survivable instead of pretending you will hold the line: mark up by around 20 percent, automate the small predictable discounts, and model the procurement discount into big deals before they arrive.

The Confounding Logic of Discounting

From SaaStr by Jason Lemkin short read

Open saastr.com
📄 Article
✓ Link checked Free Intermediate

Why we picked it Settles the most common argument in early sales: 11,331 opportunities show win rates rise when price comes up on the first call, and that waiting for the buyer to raise it does not help you. It also pins down when in the call to do it.

When to discuss price and budget according to data

From Gong Labs by Devin Reed short read

Open gong.io

The same ground, at another level

How pricing and packaging reads from a different seat.

Terms in this answer

MRR

People also ask

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