“The Competitor Gives a Bigger Discount”: 5 Responses That Don’t Cut the Price

By Partogi Hasian Simandjuntak, Founder & Lead Trainer, ASTHA · 5-minute read

The Field Situation

Ten in the morning, at a wholesale shop on the edge of a traditional market. Our salesman has just handed over the order form. The shop owner glances at it, then says without looking up:

“The other company’s salesman gives me a 3% discount. What can you do?”

Within seconds, our salesman replies, “I’ll give you 3% too. But take 5 cartons, okay?”

The order is won, and the salesman leaves relieved. But do the math. If the same thing happens in 20 shops every day, the company’s margin slowly leaks away. Worse, the shop owner learns that every time a competitor is mentioned, the price drops.

This happens every day, in General Trade, Modern Trade, and Food Service alike.

Why This Happens

Salesmen who discount immediately are usually not lazy thinkers. There are three causes I often see in the field:

1. Fear of losing the order. Daily targets create pressure, so a discount feels like the safest shortcut.
2. No other trade-offs to offer. All they carry is a price list. They have not been equipped with other options.
3. No checking of the claim. “The competitor gives a bigger discount” is accepted as fact, when it is often just an opening negotiation tactic.

In reality, shop owners rarely care only about price. What they care about is profit, stock turnover, and ease of doing business.

5 Responses That Don’t Cut the Price

1. Probe first, don’t answer right away

Ask calmly: “Which product is that 3% for? What’s the minimum order? Is it cash or credit?”

Competitor offers often come with unstated conditions: slow-moving products, large minimum orders, or cash-only payment. By asking, you turn the conversation from price into a fair comparison.

2. Talk profit per shelf, not price per carton

Shop owners think in terms of money turning over. Show that our product sells faster: “Our product sells out in a week. The cheaper one can sit on the shelf for a month. Your money comes back faster with ours.”

A 2% margin that turns over four times a month beats a 3% margin that turns over once.

3. Offer value, not a discount

Replace the discount with something that is valuable to the shop but cheaper for the company:

• Display or promotional materials that help products sell faster
• Bundling with another product shoppers are looking for
• Tiered programs, such as a bonus when the monthly target is reached

The principle: never give something without asking for something in return.

4. Use payment terms as a trade-off

For many shops, cash flow matters more than a small discount. “The price stays the same, but for this order I can request longer payment terms for you.”

Of course, this must follow the company’s credit policy and be agreed with your manager or distributor first.

5. If you must give, ask for something back

Sometimes a concession is necessary. When it is, make it an exchange, not a gift: “I can help, if you take 10 cartons and we put the display at the front.”

This way, the shop owner learns that a special price always comes with a commitment.

Lessons for Sales Leaders

Salesmen who discount quickly are often just copying what their manager allows. A few things Sales Supervisors and Sales Managers can do:

• Equip the team with a list of trade-offs beyond price: display, bundling, terms, and programs
• Practice responses to price objections through short weekly role plays
• Track discounts per salesman, not just volume achievement
• Go into the field and observe how the team responds under pressure from shop owners

Good negotiation doesn’t make the customer feel they lost. The customer feels they gained value, and the company protects its margin.