Discounting 

That fact that discounting works is undeniable. For making deals, that is. It works initially because people value the same things differently. By decreasing the price for your end of the bargain, the exchange automatically becomes more interesting for the counterpart. This makes a deal more likely.

Ugly Duckling says:

Giving into discount amounts to admitting to failure.

All things considered, discounting as such implies giving away money for free. That is not sales nor is it good business practice. It's charity! People with a mind set for discounting will not stay in business for long.

If discounting strategy is that unprofessional, why is it such common practice? The reasons are both simple and complex. People tend to be blinded by the prospect of instant gratification. Like a donkey guided by a carrot, people in sales are led to believe that discounting is the best way to a deal. If the option of no deal is out of the question, then the negotiation cards are dealt in favour of the buyer. Those who hold the upper hand determine the outcome. In a sellers market, that upper hand is yours. In a buyers market it is theirs. And sad to say, every sellers market tends to move in the direction of demand. Call it the Law of Sales Injustice.

In addition there is the sales management environment that a sales has to deal with. A subject we will address in a sales management setting.

Sales must go on! So what is the alternative? There exists an approach that leverages the principle behind discounting to the point of more value instead of less... We call it Xcounting. The X stand for 'Not Dis'-counting. The X also stands for Subtotal, or preliminary sum.

The idea is this: if discounting seems appropriate, it is obviously something of value. It is a value that you can offer. Since we are in a situation of value exchange, the question now becomes: what is offered in return? If the answer is: "You will get the deal", it is not acceptable. An appropriate answer would be something that is worthy of a Win-Win scenario, not a Win-Lose. It has to be something specific, in terms of the deal. An acceptable 'Xcount' implies a bigger value for both the seller and the buyer. Otherwise, you are (again) into charity, not business.