Before discounting, companies should consider several factors to determine if they can instead hold the line. First, consider whether customers still need your specific products. Are substitutes readily available, and if so, how attractive are they? While demand may be down, the customers who are still buying might be brand loyal and willing to pay a premium for the smaller volumes they are purchasing. What risks do your customers mitigate by buying your products instead your competitors? Are you uniquely positioned because of your ability to provide timely deliver or servicing?

All of which points to the need to quickly and clearly segment your customers by their price sensitivity, gauging the likely effect that discounting will have on their current and future purchases. Having a strong pricing capability will help.

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