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 doesThe real math behind a "harmless" 10% discountHow much additional work you have to sell just to break even on a discountWhy the math gets uglier the thinner your margins already areThe difference between a strategic discount and a fear-based one

Timestamps00:00 – The problem: contractors negotiating against themselves the moment a customer pushes back00:40 – The example: a $10K job at 50% gross margin01:00 – What actually happens when you cave and knock off 10%01:40 – Your costs don't drop just because your price did02:00 – The real hit: a 10% price discount = a 20% gross profit hit02:20 – Mid-show break: the Sales Leak Scorecard — find out where your sales process is actually breaking down03:20 – Back to the numbers: what it costs to earn that profit back03:40 – How much additional revenue you have to go sell just to replace what you gave away04:20 – The math gets worse at lower margins (30% example)05:20 – When discounting is okay — legit strategic reasons vs. reacting out of fear06:00 – The close: know your numbers, hold your price, protect your profit

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

Follow Tom on IG

The Contractor Fight Website