Here is the scenario: You are talking with the prospect, everything going well, getting down to the final details and they hit you with the “Can I get a better price?”, or “Can I have some discount?”. If you have real life experience with sales, whether that would be B2B or B2C, this is the one question that is guaranteed to come up to the discussion. In a B2B scenario, it would look something like this “I love the service/product, but please give me your best price so I can present it further up”. So in essence, both cases are looking for discounts. The question now is “Should you?” “Should you not” and “If yes, how?”
If you are at this stage in the discussion, it means you haven’t effectively managed to handle the price objection from the beginning of the conversation, or haven’t managed to quantify the value properly to the potential customers throughout your presentation.I will start off by telling you what you shouldn’t do, and that’s giving away a discount. Don’t do it! Take a step back and actually consider the consequences of giving a discount:
1. You have just devalued the product in the eyes of the consumer. Giving away a discount, means that even you are not sold on the price of your own product or service. As a sales person you should be firm behind the value to price ratio of whatever it is your selling, and you should convey it clearly.
2. You have just destroyed all credibility and trust you have built thus far. Customer is now thinking “Why didn’t you give me this price from the start?”, “What If I hadn’t asked for it?”. They would think of you as a savvy money worshipping sales person.
3. You are preconditioning them now for future discounts. You have already done it once, so now every time they will want to do business with you, they will always ask for the discounted price. The big problem here, is that it is not just them, but also any referrals coming from them, will also be preconditioned to asking for discounts
The actual methods and techniques of avoiding discounting will be addressed at a future blog post.
However, some times in sales, and I have been there myself, you understand that if you don’t give that discount, then the customer will walk away and we will lose the deal. What do we do then? Under what circumstances do we give away the discount? Are there any exceptions to the No-Discount policy?
This actually is simple. You can give away a discount as a last resort, but only when you can ask for something in return. In my case I used to ask for referrals, or when I was just kicking off my career as a salesperson I would ask for online recommendations. When I started selling my online digital marketing services, if you wanted a discount I would simply ask you for a lengthier contract duration. Always remember that to give something, you need to be able to ask for something in return, after all, as we always say in sales, it has to be a win-win scenario.
Thank you for taking the time to read through. I hope you have found it useful and helpful. All comments and feedback are welcomed, so leave yours below.