Why a 10% Discount is Negotiating Against Yourself

Get Your Sales Leak Score: https://thecontractorfight.com/leak

You just found out that "small" discount is costing you way more than 10%. In this episode, Tom breaks down the actual math behind discounting a job, and why giving away 10% off your price can wipe out 20% (or more) of your profit. If you've ever caved on price because a customer pushed back, this one's for you.

What you'll learn:

• Why your costs don't move when your price does
• The real math behind a "harmless" 10% discount
• How much additional work you have to sell just to break even on a discount
• Why the math gets uglier the thinner your margins already are
• The difference between a strategic discount and a fear-based one

Timestamps

• 00:00 – The problem: contractors negotiating against themselves the moment a customer pushes back
• 00:40 – The example: a $10K job at 50% gross margin
• 01:00 – What actually happens when you cave and knock off 10%
• 01:40 – Your costs don't drop just because your price did
• 02:00 – The real hit: a 10% price discount = a 20% gross profit hit
• 02:20 – Mid-show break: the Sales Leak Scorecard — find out where your sales process is actually breaking down
• 03:20 – Back to the numbers: what it costs to earn that profit back
• 03:40 – How much additional revenue you have to go sell just to replace what you gave away
• 04:20 – The math gets worse at lower margins (30% example)
• 05:20 – When discounting is okay — legit strategic reasons vs. reacting out of fear
• 06:00 – The close: know your numbers, hold your price, protect your profit

Get Your Sales Leak Score: https://thecontractorfight.com/leak

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