We have been in a competitive situation against a company recently which reminded me of the 1980s. Their package deal price for the prospect started at $27,000. A day later it was $22,000. Two days later they found a $5,000 bonus discount to offer and their latest offer is $12,000 plus three days of extra time worth $1,500. While companies can and will discount as they see fit, such deep discounting makes a mockery of having a price list and a stated policy of not discounting. It helps them in that from our point of view we never know how they will price a deal. It also weakens them in that as word gets around people will know that you can screw them on price and in small business channels word does get around.
Our view on price is that it has to be fair for both sides since deep discounting hurts too much – if not today then in a year or two. The type of discounting from our competitor demonstrates a fear which will not help them build their business.
We won the sale. We also won by holding firm on price and focusing on the value proposition. Plus we won by seeing desperation in the eyes of a competitor.