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Why Most Founders Discount Too Early (And What To Do Instead)

Guillaume Duvaux
Guillaume Duvaux |

The First Time I Lost Control in a Sales Negotiation

Early in my sales career, I got crushed in a deal.

The prospect was perfect: big brand, huge logo potential, and early traction in our ICP.

But the moment pricing came up, everything changed.

They hit me with:
"Look, your product is great. But if you want procurement sign-off, we’ll need at least 30% off."

I panicked.

Without a framework or a plan, I did what most technical founders do when money’s on the line:
I caved.

I won the deal.
I lost the margin.
Worse — I lost control.

It took me years (and a lot of mistakes) to learn this:

Discounting isn’t a pricing strategy.
It’s a negotiation tool.

And used wrong, it’s a GTM tax on bad positioning.

 

Why Discounting Happens in Early-Stage Sales

There are only four real reasons to discount in B2B sales.
Every other situation is a sign you didn’t do your GTM homework.

1. Speed — You Need to Compress Sales Cycles

If you’ve got a late-stage deal that’s stalling for internal reasons (budget freeze, procurement nightmare), you can offer a small discount with an expiration date.

Think: 5% if signed by Friday.
Pro tip: You don’t want to speak to your customers in percentages, but in real $$$ value. It’s more powerful!.

But if speed is always your reason to discount?
Your sales process is broken.

 

2. Competitive Pressure — Playing Defense

Yes, in crowded markets, you may face direct price competition.
But discounting to "stay competitive" is what weak companies do.

If you’re early-stage, the right move is either:

  • Win on differentiated value (better fit for their use case)

  • Or trade the discount for something valuable to you (case study, logo rights, multi-year commitment)

Never discount without getting something strategic back.

 

3. Land-and-Expand — Long-Term Account Strategy

If you know you’ll upsell significantly in the next 6–12 months, you can discount to get in.

But only if:

  • You have clear product expansion paths

  • Your pricing model supports usage growth

  • The customer has high expansion potential

Otherwise, you’re just burning margin for nothing.

 

4. Relationship Building — Strategic Logos

This is rare.
Only discount deeply if:

  • The customer will materially change your credibility in the market

  • The deal will open real pipeline in your ICP

  • You have a tight plan to leverage that logo for growth

Otherwise, "relationship building" is just a nice word for "desperate."

 

How To Avoid Discounting Traps

Here’s the system I teach founders inside The Founder Protocol:

Step 1: Anchor Value Early

Discounting happens when the customer doesn’t understand your value.

Fix this by building a rock-solid business case before you talk price:

  • Quantify pain

  • Map ROI

  • Tie pricing to outcomes

If they believe the value, they won’t challenge the price.

 

Step 2: Trade, Don’t Give

Discounts should always come with a trade.

Example trade-offs:

  • Pre-payment

  • Multi-year contract

  • Logo use

  • Customer reference

  • Faster deal process

Control the frame:
"I can explore a commercial adjustment if we can agree on X, Y, and Z."

 

Step 3: Use Time Limits Aggressively

Discounts without deadlines kill your deal velocity.
Force urgency.

Best practice:

  • Offer small discounts with 48-72h expiration

  • Tie discounts to quarter-end or fiscal timing

  • Make the default price full price

 

The $1M ARR Founder Mindset

Founders who scale fast learn this truth early:

Discounting isn’t how you win great deals.
Positioning is.

If you’re constantly under price pressure, the problem isn’t your sales skills.

It’s your ICP clarity.
It’s your messaging.
It’s your product’s perceived value.

Solve those upstream — and price becomes a non-issue.

 

Ready To Build a Sales System That Doesn’t Rely on Discounting?

That’s exactly what we cover in The Founder Protocol.

A private program for B2B founders who want to reach $1M ARR faster — with less stress, more structure, and proven GTM systems.

Inside the Program:

  • 2x Monthly Deep Dives (Sales, Positioning, GTM Strategy)

  • Execution Frameworks (Discovery Templates, ICP Guides, Pricing Playbooks)

  • Direct Access to Me for Tactical Q&A

  • A Community of Founders to Share Wins, Challenges, and Learn from Each Other’s Journeys

The Founder Protocol Early Adopter Program is now open — but not for long.

The first Founders have already joined, email me if you have questions about the program.

Talk soon,
Guillaume Duvaux

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