Can a quick price drop close the deal? Is there a downside? Let me share why discounts like this can backfire for Production Inkjet print service providers—and what to do instead.

Scenario A: We quote $5,000 to a customer for a production inkjet print job—let's say it includes full-color variable data printing on premium coated stock and mailing services. The customer comes back and says they need us at $4,500 to win their business. We agree to discount the deal by $500 but don’t change anything about what we’re delivering—still the same premium stock, same color coverage, same mailing service.

In Scenario A, the customer gave up nothing to get a discount. We changed the price without changing the offering, which I call an “unearned discount.” This obviously eats into our profit. But equally importantly, unearned discounts hurt trust. When the customer learns that they can simply ask for a discount and get it—without any adjustment to the scope or materials—they may conclude there was extra margin in the deal that we were trying to sneak by them, and they caught us in the act.

We may think a discount makes the customer feel good, but unearned discounts actually hurt customer trust and destroy price integrity—the structural integrity of fair value-based pricing. We’ve broken price integrity, which rests on a rigorous exchange of value, by discounting over nothing. We also open the wild, wild west of discounting and train the customer how to do business with us forever.

Scenario B: Now consider a different approach. We quote $5,000 for the same production inkjet print job. The customer again says they need $4,500 to close the deal. This time, we agree to drop the price by $500, but only if we change part of the offering. For example, maybe we:

• Move from premium coated paper to a lower-cost uncoated stock

• Reduce the amount of variable data personalization

• Lower the ink density or limit the color coverage

• Adjust the run size or finish/trim options

• Delay the mailing date or the start date of production

• Ask for partial or full payment up front

By providing options tied to a discount, we allow the customer to indicate their true price sensitivity. We can suss out if this was just a negotiation tactic, or if the budget limitations are real. If they value premium quality (like coated paper, full-color coverage, or top-notch finishing), they might decide to pay the original price. If budget is truly their main concern, they can opt for a scaled-back version of the job and accept fewer features.

This approach accomplishes three critical things:

1. Improves Profitability: We protect or maintain margins by lowering our internal costs whenever we discount the price.

2. Separates Negotiation Tactics from True Price Sensitivity: We discover whether the customer really needs the lower cost or if they’re simply testing our willingness to discount.

3. 3Protects Price Integrity: Because any reduction in price reflects a corresponding reduction in scope or materials, the customer doesn’t walk away feeling we inflated our prices just to give them a “win.”

This transparent, “give-to-get” approach reinforces trust and ensures every discount is earned, not just handed out.

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Want to learn more? Register now to attend the thINK Academy Workshop, “The Power of Pricing”. (Important Note: The session will NOT be recorded or available on-demand).

BONUS! Workshop attendees will receive a workshop guidebook and be eligible for 1:1 follow-up coaching sessions.