When the steel market softens, every quote counts. Prices drop, buyers gain leverage, and the pressure to “just win the deal” grows. In this environment, VPs of Sales face a dangerous temptation: chase volume at the expense of margin.

But smart sales leaders know the truth—cutting prices isn’t a strategy. It’s a short-term fix that erodes long-term profitability. The key to weathering a falling market isn’t to quote faster or cheaper. It’s to quote smarter.

Here’s how to build a quoting strategy that holds the line on margin—even when the market turns against you.

Understand the Margin Killers
In a falling market, you’re not just up against lower prices—you’re battling a psychological shift in the buyer. Customers expect discounts. Sales reps start second-guessing themselves. Management demands numbers. The result? Margin bleed.

Common triggers for this include:

Lack of real-time market intelligence

Sales reps guessing what the price “should be”

Inconsistent pricing logic between reps or regions

Desperation to move tonnage before prices drop again

If your quoting strategy is reactive, your margin will erode without you even noticing. A proactive quoting strategy stops the leak before it starts.

Start with Data, Not Gut Feel
The steel industry still relies heavily on gut instincts. But when market prices are fluctuating weekly—or daily—intuition isn’t enough. Your quoting strategy must be grounded in real-time data.

Pull in data from:

Your own recent deal history

Current inventory levels and carrying costs

Mill lead times and forecasted price trends

Customer order patterns and contract commitments

With this information at your fingertips, you can build pricing guidance that reflects both market reality and your margin objectives. That’s how you quote with confidence, not guesswork.

Define and Enforce Pricing Guardrails
Reps need room to negotiate, but that doesn’t mean every deal should be a free-for-all. A strong quoting strategy gives reps flexibility within defined parameters.

Set clear margin floors, target bands, and escalation thresholds. For example:

Minimum acceptable gross margin: 15%

Target quote margin: 18–22%

Deals below 15% require VP approval

Make these guardrails visible inside your quoting system, so reps see them as they work. Better yet, use AI-based pricing tools that suggest optimal prices based on the customer, product, and market conditions—then flag any exceptions.

This keeps margin decisions strategic, not emotional.

Segment Your Customers Strategically
Not every customer deserves the same discount—or the same quote speed. A smart quoting strategy segments customers based on lifetime value, payment behavior, and strategic fit.

For instance:

High-volume, on-time payers may get preferential pricing or early-access quotes

Low-margin, slow-pay customers may require stricter margin discipline

New or at-risk accounts might benefit from value-add services rather than deeper discounts

This segmentation ensures you’re quoting to win the right kind of business—not just any business.

Train Reps to Sell on Value, Not Just Price
In a falling market, reps often panic and lead with discounts. But customers still care about reliability, turnaround time, product quality, and service.

Train your sales team to frame their quotes around total value:

“We have the stock now—you won’t face delays.”

“We’re offering mill-direct delivery with QA certification.”

“This price includes flexible split shipments over the next 60 days.”

The more value you can articulate in your quotes, the less pressure there is to cut price.

Build a Feedback Loop Between Sales and Ops
Margin protection doesn’t live in a vacuum. It requires collaboration between sales, operations, and finance.

Create regular feedback loops to discuss:

Which deals hit margin targets—and which didn’t

Where quotes got stuck or delayed

Why certain customers are demanding lower prices

What inventory needs to move fast vs. what can wait

When teams work from the same playbook, quoting becomes a strategic lever—not a fire drill.

Automate Low-Risk, High-Frequency Quotes
Not every quote needs to be handcrafted. Use automation to handle the simple, repetitive quotes—freeing up your team to focus on strategic deals.

For example:

Standard SKUs for repeat customers

Spot quotes under a certain tonnage

RFQs that meet all guardrail targets

Automation keeps the sales engine running while ensuring your team spends its energy where it matters most: winning and protecting high-value business.

Review, Refine, Repeat
Your quoting strategy isn’t a set-it-and-forget-it project. As the market shifts, so should your approach. Review your quote performance monthly. Look at:

Quote-to-win rates

Average margin per order

Approval rate on exception pricing

Time-to-quote and time-to-close

Use these insights to tighten your process and coach your team. The goal is not just to quote faster, but smarter—and more profitably.

Final Word: Don’t Let the Market Dictate Your Margins
In a falling market, you can’t control prices—but you can control how you respond. A disciplined, data-driven quoting strategy is your best defense against margin erosion.

VPs of Sales who lead with process, pricing clarity, and value-selling don’t just survive downturns—they come out stronger on the other side.

Because at the end of the day, it’s not about how much steel you quote. It’s about how much profit you protect while doing it.