Should salespeople have pricing authority? I've asked and answered this rhetorical question so often, I risk sounding like a broken record. And just when I think I've made my point, someone comes up to me after a presentation and wants to brag about his discounting philosophy. This happened after a presentation to 400 distributor salespeople and their managers.

The salesperson introduced himself and told me that he was the "go-to guy" in his company. I asked what that meant. He said, "I'm the guy that the customers go to when they think our prices are too high. And I generally lower them."

"Why do you do that?" I asked.

"Because if your prices are consistently high, you lose credibility with the buyers, they quit calling you. They figure you don't want the business," he said.

Of course I directed him to my Website and the plethora of articles I've written on crushing price objections. This guy is not that unique in his beliefs.

A few weeks ago, a lawn service telephone solicitor called me to inquire why I did not renew his service this year. I told him we decided to handle the fertilizing ourselves. He asked, "Was there anything wrong with our service?"

"No," I responded. "We just want to do it ourselves this year."

"If I gave you a substantial discount over what you paid us last year, would you reconsider?" he pressed.

"Does that mean you overcharged us last year?" I asked.

"No, sir. We just want your business back this year," he said.

I declined.

Pricing is a strategic marketing decision that salespeople tactically execute. When marketing departments establish their prices, they are positioning their products for an industry, not just a salesperson's territory. Great thought goes into that decision, regardless of what the sales force thinks. When salespeople arbitrarily adjust prices, they are re-positioning the product.

I once worked for a company that had six branches throughout the Midwest and each branch sold to a different location of a large account. The price level for the account varied significantly by branch. They had six different price schedules! How long do you think it took the purchasing agents at each of the customer's locations to figure out what was going on? The negotiation began with the lowest discount schedule and traveled south quickly. Management was to blame for that fiasco because they delegated their profit to the sales force.

This opinion generally draws response from proponents of salespeople having pricing authority. I'd love to hear your opinion, but you won't change my mind. Since 1981, I've trained more than 100,000 salespeople and I've heard their rationales first hand. More importantly, I've seen the impact of random discounting on their companies.

The answer is: "No." Salespeople should not have pricing authority.