Sunday, August 23, 2026

Private label now owns 52% of UK grocery sales. Here's why SME FMCG suppliers are losing range reviews — and the six-point system that fixes it.

Forty-one percent of small business owners say they discount at least somewhat often throughout the year, and fifteen percent say they do it very often. If that is you, the real question is not whether you should discount less. It is why the conversation got to the point where a discount was the only lever left to pull. Because the data also shows discounting is not rescuing anyone: one in three of those same owners report sales down by an average of 21 percent anyway.

The Enemy: Discounting as a Default, Not a Decision

Xero's research on Australian small business discounting tells an uncomfortable story. Discounting has become the reflex move the moment a deal looks shaky, not a considered pricing decision. The owners seeing sales rise right now report an average lift of 17 percent, driven by demand, not discount depth. The ones cutting price out of habit are not closing the gap. They are training their best customers to wait for the next markdown.

SPIN Selling: Ask Before You Offer

Neil Rackham's research into what actually separates top sellers from average ones produced SPIN, a simple sequence of question types that gets a customer to state their own reason to buy at full price, instead of you inventing one for them with a discount.

  • Situation — Understand how they currently handle the problem your offer solves, before you pitch anything.
  • Problem — Ask what is not working about that current approach, in their own words, not yours.
  • Implication — Ask what that problem actually costs them if it continues unsolved. This is the question most SME owners skip entirely.
  • Need-payoff — Ask what solving it would be worth to them. By now, they are describing the value, not you.

By the time you reach Need-payoff, the customer has stated their own case for paying full price. You have not had to invent one, and you certainly have not had to discount to get there.

"Kevin, you distilled business, marketing and sales strategy into powerful simple concepts and actions with real life stories of your start-up business and corporate life. You walk the talk with empathy and passion. Feedback has been off the charts. The energy in the room was palpable."

— Nikki, MahiTahi / The Colab (11 Food and Beverage Companies)

Why Owners Default to the Discount Anyway

Asking an Implication question out loud, in the room, feels confrontational when you have never practised it. Offering ten percent off feels safe, fast, and familiar, especially with a quota or a quiet month pressing on you. The discount is not a strategy. It is the easiest thing to say when you have not rehearsed anything better.

This is exactly where a coach earns their place before the call, not during it, rehearsing the Implication and Need-payoff questions with you until they stop feeling confrontational and start feeling like the obvious next thing to ask.

Quick Wins Before Your Next Pricing Conversation

  • Write down the one Implication question you have never actually asked a hesitant customer.
  • Say it out loud once, to yourself or a colleague, before your next call.
  • Hold your price for the entire call before you offer any discount at all, even if the silence feels uncomfortable.

Key Takeaways

  • 41 percent of small business owners discount often, and a third still report sales down anyway.
  • SPIN Selling, from Neil Rackham, moves a customer from Situation to Need-payoff so they state their own reason to pay full price.
  • The Implication question is the one most owners skip, and the one that replaces the discount.
  • Rehearsing the harder question with a coach beats improvising it live in front of the customer.

The business owners who close this tab and keep discounting out of habit will be having the exact same conversation next quarter. The ones who ask one more question first will not. Be the owner who holds the price and lets your customer make the case for it.