Pricing · Lesson 5
Controlling discounts
Never give a discount without getting something in return.
Discounts go straight from your profit. On a 20% margin, a 10% discount halves your profit on that project. Yet discounts are often given automatically, to 'close the deal', before the client even asks.
Set a rule: every reduction is a trade. If the client wants a lower price, reduce scope, extend the timeline, ask for faster payment, or ask for a referral or case study. 'We can reach that budget if we remove the 3D visuals' keeps value and price aligned.
Decide in advance who can approve discounts and how much. Track every discount given and why. Patterns appear quickly: certain sectors, salespeople or project types that always discount. Then you can fix the cause — usually weak value explanation, not high prices.
Example — Hypothetical: trading, not cutting
A client asks for 15% off a ₦12m fee. Instead: 'I can offer 5% if we receive 50% upfront and you provide a written testimonial at handover.' The client agrees. Cash flow improves and you gain marketing proof.
Try this
Write your own list of three things you will ask for in exchange for any discount.
Reflect
When did you last discount before being asked? What were you afraid of?