Episode #20: Pricing

Why do so many salespeople in Japan give discounts too quickly?

In many organisations, salespeople do not set the price. Pricing is decided somewhere else in the “machine” – sometimes via complex formulas, sometimes via a metaphorical wet finger in the air. Yet the salesperson is held responsible for selling at that price.

In 日本企業 (Japanese companies) and 外資系企業 (multinational companies) in 東京 (Tokyo), sales teams are often measured on closed deals, not on protected margin. When your bonus or commission depends on “getting the sale”, price starts to feel like an obstacle, not an asset.

Because most salespeople:

• Don’t see the profit margin behind each deal

• Fear rejection more than they fear erosion of profit

• Tie their self-esteem to any “win”, even a small one

…they instinctively make price flexible and reach for a discount.

Mini-summary: Salespeople in Japan and globally discount too quickly because they are rewarded for closing, not for defending value and margin. This mindset sets up long-term damage to profitability and brand positioning.

When salespeople open with “special” prices — before the client even asks — they send a powerful negative signal:

• “Normally the price is X, but I’ll give it to you for Y.”

• “If you buy two, I’ll drop the price by X.”

The buyer has not negotiated. There has been no pressure. Yet the price magically falls.

Executives and experienced procurement teams interpret this as:

• Your listed price is fictional.

• Your company is not transparent or trustworthy.

• The “special price” is just the starting point for further negotiation.

Instead of building trust, unprompted discounting tells the client, “We didn’t believe in our price either.” From that moment, every future number you present is suspect.

Mini-summary: Volunteering discounts without being asked undermines trust, damages your perceived integrity, and turns your “best price” into the starting point of a painful negotiation.

When you drop the price quickly, you also drop the perceived value:

• If there’s no fixed price, there appears to be no fixed value.

• The conversation moves from business impact to price haggling.

• The buyer holds the Gatling gun; you show up with a water pistol.

For leaders in 日本企業 (Japanese companies) and 外資系企業 (multinational companies) investing in 営業研修 (sales training), the risk is clear:

• Your brand positioning as a premium solution collapses.

• Your margins shrink, but expectations for discounts grow.

• Salespeople never develop the strategic negotiation skills needed for complex B2B deals in Japan.

Sales managers see this pattern and eventually conclude: “This person can’t sell. They can only discount.” That often ends in performance management or removal, not promotion.

Mini-summary: Fast discounts train the market to see your brand as weak and your prices as negotiable, eroding both long-term profit and your premium positioning.

The professional salesperson’s job is to defend the price with value, not surrender it.

Key behaviours:

1. Explain value before talking about discounts
   Connect your price to outcomes: increased revenue, reduced risk, efficiency gains, talent retention.
   In sectors investing in リーダーシップ研修 (leadership training), 営業研修 (sales training), and プレゼンテーション研修 (presentation training), this means showing how your solution changes behaviour, not just ticking a learning box.

2. Attach any discount to volume or scope – never to fear
   If the client truly has a constrained budget or needs “face-saving” with internal stakeholders, make discounts conditional:

   • “If you expand to three divisions, we can adjust the unit price slightly.”

   • “At X participants per year, we can review a small reduction.”

3. Trade, don’t give
   Every concession must have a quid pro quo: higher volume, longer contract, quicker decision, case study rights, or executive access.

4. Resist in small steps, not big jumps
   Avoid large, round-number drops. Move in small, justified increments. The buyer should feel they worked hard to extract each concession – not that you folded instantly.

Mini-summary: Replace reflexive discounting with structured, value-based negotiation where every price movement is earned through volume, scope, or strategic benefit to your company.

For senior leaders and sales directors in Tokyo, the problem is rarely just one salesperson. It’s a culture where:

• Discounting is normal

• Price is negotiable by default

• Value stories are weak or inconsistent

To shift that culture, leaders should:

• Integrate value-based selling into 営業研修 (sales training) – including realistic role-plays with tough Japanese and global buyers.

• Support managers with エグゼクティブ・コーチング (executive coaching) focused on coaching conversations about margin, not just volume.

• Align pricing discipline with KPIs and incentives so that defending value is rewarded, not punished.

• Use cross-functional sessions with finance and marketing to arm sales with clear value narratives, case studies, and ROI stories for 日本企業 (Japanese companies) and 外資系企業 (multinational companies) alike.

This is where Dale Carnegie Training’s 100+ years of global expertise and 60+ years in 東京 (Tokyo) become critical. Our work with leadership, sales, and DEI研修 (DEI training) equips teams to have high-stakes, high-trust conversations in Japanese and English.

Mini-summary: Sales leaders must make price defence a strategic competency, supported by formal training, coaching, and aligned incentives — not left to individual improvisation.

You can turn this article into a simple operating code for your team:

1. Never drop your price first.
   Start with value. Explain why the price is fair, reasonable, and defensible.

2. If the price is challenged, explore value before concession.
   Clarify needs, outcomes, and alternatives. Often the issue is perceived risk, not price itself.

3. If you must discount, do it slowly and strategically.

   • Tie it to volume, term, scope, or reference rights.

   • Move in small steps, never huge jumps.

4. Be ready to walk away.
   Some buyers genuinely cannot afford you — or will never value your offer properly. Protecting your brand is more important than winning every deal.

5. Debrief every major negotiation.
   Managers and coaches should review how price was handled, not just whether the deal was won or lost. This is where structured 営業研修 (sales training) and エグゼクティブ・コーチング (executive coaching) have outsized impact.

Mini-summary: Clear, shared rules for pricing and negotiation help sales teams in Japan protect margins, build trust, and strengthen the brand — not just chase short-term wins.

For over a century globally — and more than six decades in 東京 (Tokyo) — Dale Carnegie has helped organisations:

• Build leadership bench strength through リーダーシップ研修 (leadership training)

• Elevate sales performance with value-based 営業研修 (sales training)

• Strengthen influence and presence via プレゼンテーション研修 (presentation training)

• Develop inclusive cultures through DEI研修 (DEI training) and エグゼクティブ・コーチング (executive coaching)

For executives and HR leaders in 日本企業 (Japanese companies) and 外資系企業 (multinational companies), we design programmes that:

• Align pricing behaviour with your brand and strategy

• Strengthen your leaders’ ability to coach price confidence

• Equip your sales force to defend value in Japanese and English

Mini-summary: Dale Carnegie Training Japan partners with you to turn “price wimps” into confident, trusted advisors who protect both profit and brand.

• Price is a value statement, not a number. Dropping it too fast tells buyers you don’t believe in your own offering.

• Unprompted discounts destroy trust. Clients see your list price as fiction and your company as unreliable.

• Link concessions to value. Tie any discount to volume, term, or strategic benefit – never to fear of losing the deal.

• Training and coaching are essential. Structured 営業研修 (sales training), リーダーシップ研修 (leadership training), and エグゼクティブ・コーチング (executive coaching) help build a culture of price confidence in Japan.

Founded in the U.S. in 1912, Dale Carnegie Training has supported individuals and companies worldwide for over a century in leadership, sales, presentation, executive coaching, and DEI. Our 東京 (Tokyo) office, established in 1963, has been empowering both 日本企業 (Japanese companies) and 外資系企業 (multinational companies) clients ever since.