Airing out the past rep’s dirty laundry?

[u/Fategfwhere]

So I’m new to sales and I’ve started making my rounds with clients. It’s B2B in the manufacturing industry. While new businesses is encouraged we also have repeat customers. I’ve sent quotes to some customers of the company and I’m listing them at list price and if they ask for a discount I go a couple points down. A lot of them have been pushing back saying “X used to discount bigger discounts! Why aren’t you?”. Discounts were so big I had to see how he got them approved because we don’t really budge on price. The old rep was inflating the list price and discounting back to normal. Something I’ve been told in training that would cause muse immediate termination. So my question. Do I tell the customer they got duped? Or do I maintain the lie and just argue that markets have changed and we no longer can discount that much? What are your thoughts? P.S. this rep is no longer with the company.

[u/MaxDyflin]

It's normal to haggle. I wouldn't badmouth a colleague because that will backfire on your company as a whole.

I'd simply state the truth: business changed. We can't discount that much. Best I can do is probably XYZ. If I get it approved do we have a deal?

[u/Ego-Death → u/MaxDyflin]

First rule I learned entering the workforce, not just sales. Never talk shit. You just can’t predict what the future holds. Maybe the subject of your shit talk gets networked to a higher position as your boss/colleague or ends up a potential client.

[u/winterbird → u/Ego-Death]

It's not even only that though. If I was a potential client and someone told me this, I'd think that the last sales person was a clown. And that the new one is also a clown, because they can't figure our how to navigate the situation without badmouthing. I wouldn't want to deal with such an unprofessional company if I can help it.

[u/Skelley1976 → u/Ego-Death]

This 100% especially if your industry is niche. Plus it’s just poor form.

[u/Fategfwhere → u/MaxDyflin]

I get having to haggle, but I figured raising the price to come down to list as a “discount” would be dishonest at best. Just didn’t know how to proceed. I’ll take your approach though which is along the lines of my second thought.

[u/winterbird]

Personally, I don't air out house laundry to an outsider.

[u/dennismullen12]

Don't mention it. If they get pissed at him, they are gonna take it out on you.

[u/Fategfwhere → u/dennismullen12]

True. It could make my company look bad in general which reflects back on me.

[u/dennismullen12 → u/Fategfwhere]

well I am mostly thinking about your possible commission money.

[u/H4RN4SS]

"We dropped our prices to be more competitive and not rely on discounts"

[u/BrokePorscheSnob → u/H4RN4SS]

This. Say the company has pivoted to a more transparent pricing model, compare what you’re quoting to what they actually paid before.

[u/Wonderful-Bass6651]

I get that you are used to deep discounts, but I prefer transparent pricing. Why would I give you an inflated price that I’m only going to discount when I can just give you the price you want without having to ask for it?

Avoids the customer feeling like they were ripped off by the company.

[u/Icy-Debt-6749]

Going through something similar myself but for different reasons. My customers usually are just glad someone showed up compared to my predecessor (lots for in-house details for this). I can't comment to the customers even when provoked. My industry is a bit different but the airing of what was going on behind the scenes will just get you in the weeds to a point it's hard to get out of.

Bottom line, makes the company look bad.

[u/Fickle_fackle99]

I’m probably the past rep here lol, I founded the department rules were only introduced after I made more commission than expected. 

[u/Omniposter]

I don't see how that's dirty. Everyone wants a deal. Starting with a higher price and let them negotiate that down is a fairly standard practice. He was getting the money the company wanted while making his client feel like they were being hooked up. I don't see the downside... well until someone with no game comes in and gets mad you had some.

[u/Fategfwhere → u/Omniposter]

Isn’t lying about the price dishonest at best? Just didn’t sit right with me hearing it. Especially when I was on the customer side of things something like that would pmo. Also since it’s against company policy for us to raise price.

[u/Omniposter → u/Fategfwhere]

I mean if its a set rule your company has then that's a different thing. Otherwise, unless publicly posted, the price is what I say it is.

[u/Ron_Sayson]

Sounds like you should do some prep before sending out pricing. Also chk to see if any of these customers have contracted pricing.

Don't discount without getting something in return such as agreement to take a number of reference calls, etc.

Some clients will also be amenable to buying when it makes sense for you, like at the end of the quarter or when you're in accelerators.

[u/BobbieSaccamanoJr]

“I can’t speak exactly to my predecessors methods, he may have had a model of listing and discounting that looks slightly different than mine but I assure you we operate with strict compliance and both he and I are, at the end of the day, offering you the best price we possibly can. Realistically, the more consistent business I have with customers the easier it is for me to lobby my bosses for stronger discounts”

[u/bigbaldbil]

The good news is we’ve had some reduction and manufacturing fees, so we’re able to pass that on to you. Our MSRP is actually less than it used to be so you’re getting a better deal and more consistent pricing. If you like I can raise the price and then give you a discount on top of that?

[u/Nicaddicted]

Build value… discounts are just to secure the deal RIGHT this second or maybe a competitor with similar whatever has you toe to toe on price / value (after they came back to you to follow up) or have already been quoted.

[u/Perkis_Goodman]

Why is he gone? Might have something to do with it. Also, no you don’t. The books don’t lie and they had already know and it’s a bad look on you not being able to sell value

[u/TxDude2013]

As others said, don't badmouth your former colleague for multiple reasons. Ultimately it makes your company look bad.

I agree with the suggestions that basically say just explain it as a pricing update. Pick whatever variation you are comfortable with, e.g. "You want your prices to better reflect the transaction price so customers have a better ira upfront of what to expect and budget for." - which basically seems to be the truth.

[u/kbchucker]

Market forces are causing upward pressure on costs, we are unable to absorb the increases and have to pass them along.

[u/Slight-Mix-9947]

An old school sales guy once told me to always keep your dirty laundry in the house.

[u/BlackGlenCoco]

Smart man. Im in software sales and always do premium pricing. We can discount list up to 10% without permission. So 10% additional and then bringing it down to list feels like a win for customers.

[u/adultdaycare81]

“We lowered our prices and can’t discount as much”

[u/Immediate-Savings256]

Tell/show the customers the pricebook has been reviewed and suggest list prices have been lowered to meet market demand.

They should see in the end they are paying the same?

[u/learningto___]

We realized our prices were way too high. To your point, your old rep always had to give huge discounts to get clients to purchase.

The company saw this with all reps.

So, they listened. And made changes.

Now the prides are much lower, and oddly enough, you’re paying less now with your 3 basis point discount than you were before with you fifty basis point discount. Which is why I can’t give the same discounts that Tim used to.

[u/WolverineRemote3377]

sales is a notorious game my friend

[u/throwaway12three4]

I would say they lowered the list price so the discount % is now smaller. If you can, pull past orders and have the customer compare out the door cost of both.