You’re probably more than used to seeing the end-of-year car and truck commercials, each offering a giant bow and a hefty discount. But, is discounting the answer for your business? Sales leaders often feel the crunch to meet Q4 goals in November and December, and many turn to discounts as a result. However, this approach can actually undermine long-term goals, weaken client relationships, and set poor pricing expectations for the future. Here’s a look into why discounting isn’t the answer – and why B2B sales training is.
What Happens When You Discount?
From IT services and professional services to manufacturing companies, many B2B industries and businesses turn to discounts to help improve quarterly and yearly numbers, especially during times of low sales. As a result, managers and sales professionals see the “success” of these promos and offer their own promotional terms to bring in clients and reach their Q4 goals.
While they might help you reach those end of year numbers, you’re likely doing your business a disservice if you embrace discounts. Here’s a look at some of the downsides:
- Loss of long-term value: Discounting devalues the product or service. Once a customer is shown that a product can be sold for less, they view it as worth that discounted price. They’ll also expect discounts in the future. Instead of solid year-round purchases, your customers will likely be waiting for the fire sale you had last year.
- Drained Q1 pipeline: By pushing your team now, you’re hurting your overall revenue generation system. Q4 discounts result in a reduced Q1 pipeline, meaning your team will prospect harder to meet the Q1 goal. Instead of solving the problem today, you’re pushing the problem to tomorrow.
- Perception of desperation: Frequent discounting can lead to a lack of confidence in your product or service’s value. This effectively creates a “race to the bottom” perception. Instead of attracting your ideal customer, you’re marketing to price-sensitive clients which, in turn, hurts your brand’s overall image.
B2B Sales Training Helps You Avoid Discounting, Create Sustainable Growth, and Meet Q4 Goals
Thankfully, you don’t have to rely on discounting to meet Q4 goals. Instead, it’s important to create a
holistic revenue generation system. B2B sales training, including KLA Group’s sale coaching and services, can help your team have a successful Q4 and set up the new year for continued, sustainable growth.
Align Brand Messaging, Offers, and Goals
KLA Group’s B2B sales training teaches representatives to highlight unique value propositions, shifting the conversation away from the price and instead focusing on the benefits and the product or service’s value. It also helps to remove pesky sales and marketing silos, improving collaboration to create cohesive end-of-year messaging that aligns with both teams’ objectives.
Both departments can then work together to develop strategic, limited-time, value-add incentives that reinforce the value of the purchase. Benefits such as additional services, onboarding support, or extended training can attract clients without signaling desperation, reducing the long-term value, or solely marketing towards price-sensitive customers.
Focus on Long-Term Client Relationships
Even in Q4, representatives are able to foster client relationships without relying on discounts. Training helps sales teams develop messaging and strategies that enhance customer service, improve trust, and lead to loyal, long-term customers.
For example, persuasive messaging can improve Q4 sales, as it focuses on the client’s immediate needs, priorities, project urgency, and potential savings or efficiencies they could receive if they act now. It also builds a solid foundation for trust without taking value away from the purchase.
Here are a few ideas:
- “If you move forward now, we can begin working together to get your own Q1 off to a fast start.”
- “With business slow through the holidays, you can begin or complete that project you’ve been putting off all year.”
- “Do you have any budget remaining that, if left unspent, won’t roll over to next year?”
- “By purchasing now and increasing your operational expenses, you may be able to better manage tax implications for this year and next.”
Create a Revenue Generation System
Discounts really only work for “now” – they’re not a strategy for the future. Once the promotional period is over, you’re left with the aftermath. By maintaining your pricing integrity and closing high-value deals in Q4, your company can enter Q1 with momentum and a full pipeline.
In addition, sales training shows representatives (and the business) the value of strategic pipeline management and how to develop a revenue generation system that works year-round, not just in Q4. For instance, the persuasive messaging listed above can be tailored to other quarters’ objectives and client needs, helping your team support your company’s year-round pipeline.
Utilizing these tactics creates balance, meaning you won’t have to accept those last-minute deals or offer discounts to meet your Q4 goals.
Discounting can seemingly solve your Q4 problem, but it can set up issues for the future, including loss of perceived value, poor Q1 sales, and misaligned brand messaging. However, with the right strategy and KLA Group’s B2B sales training, your team can be better equipped to reach end-of-year goals, set up for a successful Q1, and develop systems that work for years to come.
B2B Sales Training Sharpens Skills
Ready to fine-tune your team’s sales skills and incorporate impactful strategies into your consultative sales process? Contact KLA Group to learn more.
Top Common Questions About Boosting B2B Sales in Q4
1. Why is discounting a risky strategy for B2B companies in Q4?
Answer: Discounting can devalue your products or services, leading clients to expect reduced pricing in the future. For B2B companies, this often results in weaker client relationships, a less profitable Q1 pipeline, and a brand image that appeals mainly to price-sensitive buyers.
2. How can B2B companies meet Q4 sales goals without offering discounts?
Answer: B2B companies can focus on value-driven messaging, highlight unique benefits, and offer strategic value-add incentives, such as onboarding support or extended services. By investing in sales training, your team can effectively communicate the value of your offerings to potential clients, even without a discount.
3. What are the long-term effects of discounting on a business’s revenue generation?
Answer: While discounting might temporarily increase Q4 sales, it can lead to client price expectations that hinder full-price sales, decrease brand value, and drain the Q1 pipeline. These effects make it harder to achieve long-term revenue goals and maintain consistent cash flow.
4. How does sales training help B2B teams avoid reliance on discounting?
Answer: Sales training equips teams with skills to communicate the unique value and benefits of products or services. Training also fosters alignment between sales and marketing, allowing both teams to develop cohesive messaging that emphasizes value over price and builds strong client relationships.
5. What are effective alternatives to discounting for driving Q4 sales in B2B?
Answer: Effective alternatives include offering value-add services, personalized consultations, and incentives that align with clients’ business goals, like project completion before Q1 or tax management benefits. These strategies help maintain product value, attract quality clients, and set up a strong start for the next quarter.
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