The term “negotiation” implies compromise — you may envision haggling to get to a perceived fair price, which lies somewhere below list price. Your customer always wants the best price, and they believe discounts are a way you show commitment to them.

But discounts can often work in a counterintuitive way; they can devalue your solution. In recurring revenue businesses, discounts have major consequences: a 10% discount, after seven years, leads to half the revenue, compared to if you had sold it at full price.

There’s a better way to negotiate, where customers and salespeople achieve a win-win outcome…. the trick is to keep the value of the deal the same.