Disagree. If I ask for a discount, it's because 1) the pricing is off and you have competition 2) I want to make a decision and settle into the service.
If you say no to my offer, cool. I'll go elsewhere.
I think startups that say no to reasonable discount offers are foolish, and it's a bad omen for their future.
Depends on service and how broad the competition is. I pretty much respond the same way as the author to discount requests. If I feel that the service I charge $250/mo for creates $250/mo value to you, I'm under no obligation to lower the price.
Ironically, we're happy to give discount pricing for a year deal - because in that case the customer is investing up front and we're confident once they're using the product they'll realize significant ROI and stay.
But re negotiations, I agree with Steli here - the customer who asks for a discount before they've ever tried the product will typically become a problem customer (especially for a young company trying to get the initial 10-100 customers).
If you say no to my offer, cool. I'll go elsewhere.
I think startups that say no to reasonable discount offers are foolish, and it's a bad omen for their future.