🔥 Hot Take: Margin Isn’t Just a Number — It’s a Strategy.
In sales, margin is more than just profit — it’s a measure of how well you’ve aligned your solution with what matters most to the buyer. The best deals don’t just maximize profit; they maximize “above the line margin” for your organization.
📈 Above the line margin = perceived value.
In The Priority Sale, we talk about above the line margin as the value your buyer perceives. This is where you prove that your solution addresses their top threats and strategic priorities. If they see the high impact your solution will have on their business, price becomes secondary.
💡 Below the line margin = painful cuts.
Below the line margin is where most leaders look first when prices or profits shrink. Instead of focusing on value, they turn to internal cost-cutting measures — reducing budgets, slashing resources, even cutting headcount. This approach can lead to deeper damage than expected, demoralizing teams and creating long-term operational issues.
The Priority Sale teaches us that focusing too heavily on below the line margin means missing the bigger picture. By failing to prioritize above the line impact — showing the buyer why your solution is a critical investment — organizations are forced to make these difficult cuts just to protect the bottom line.
🔍 Focus on high-level threats.
The best way to drive above the line margin? Focus on the buyer’s highest level threat. Buyers make decisions based on survival — the Primitive Brain kicks in when they feel risk. When you position your solution as the safeguard against that risk, you enhance your value and justify your pricing.
🎯 Tie margin to urgency.
When urgency is high, buyers are willing to move fast and spend more. By driving urgency around the risks of inaction, you accelerate the decision and protect your margins. The Priority Sale teaches us that when the buyer understands the cost of delay, they’re less likely to negotiate on price.
⚖️ Balance the two.
Margin is ultimately a balancing act. Above the line, you’re building value by aligning with their priorities. Below the line, you’re forced to protect profitability with potentially damaging cost reductions. The more you influence the conversation early, the easier it is to maintain strong margins without resorting to cuts.
💡 Takeaway
Margin is more than just a financial calculation or a line on an income statement — it's the value you create above the line and the internal pain you avoid below it. Master both, and you won’t just win deals; you’ll win profitable deals, enabling your organization to thrive and remain highly relevant.