I told them doing that, however, accomplishes three things:
1.) It erodes your profits by giving away those discounts.
2.) It trains your customers to wait until the end of the quarter for good deals.
3.) It obliterates your pipeline for the next quarter.
How Do We Prevent This from Happening?
You have to have an exceptionally strong start to the quarter. When you have an exceptionally strong start to the quarter, it’s easier to accomplish your goals at the end of the quarter. I know it sounds trivial, but how do you do it? By having a heavy pipeline. You need to overweight your pipeline so that you won’t have this discounting problem. The reason why so many companies end up pushing and having a fire sale at the end of the quarter is because they did not have enough leads at the very beginning of the quarter to hit their targets easily. Make sure you are maintaining, at a minimum, 3x your pipeline at the start of every period that you’re measuring—whether it’s a month or a quarter.
I have one client that has 5x the pipeline as a result of the type of market and high market share percentage they already have. So know those numbers and make sure you start that period with an overweighted pipeline, enabling you to cruise through the end of your quarter. You’ll prevent resorting to fire sales and eroding your chances of success in the next periods.