Like any other drug, discounting becomes habitual. It becomes the first choice for achieving a sales high. Taking "a quick hit off of the corporate margin" can bring immediate relief from the stress brought on by a sales manager who is demanding results.
It's always a temporary fix
But the high is only temporary. Because there is so little profit in the sale, more sales will be necessary to sustain the financial health of the organization. The pressure for more sales will often cause the discounter to turn to their drug of choice again (discounting) and the downward cycle continues.
Also, as with other addictions, the hits bring less and less satisfaction - especially when the salesperson is compensated on margin.
There is a better, healthier sales high when we close the sale on value, rather than price. The cure is education. Sales professionals need to be coached on how to sell on value rather than price. Don't try to stop discounting "cold turkey" unless you know how to behave differently. Plenty of training is available. Ask for - and accept - the help you need.
Who are the "discount users" in your organization?
Are some of your salespeople using discounting? Without some type of intervention they will likely continue using until you cannot afford them any longer. At that point you will part company and they will go to another organization where they can begin discounting again.
Come to think about it, maybe they were users at the company where they worked before you hired them. They are hard to detect.
Break the cycle; teach them how to sell on value.
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