Although we’ve spoken in the past about avoiding the discount question, there will come a time when we have to face reality and have to discount at some point.

What I’m referring to is damage control. How much you give away will affect your profitability, your credibility and the perception of the product or service by the prospect.

Start by asking some questions so that your response is more strategic and less knee-jerk.

Here are some:

*  Why are they asking for a discount? This seems obvious, but it’s surprising how many salespeople start negotiating prices without ascertaining the real reason why they want a discount. There may be another way you can meet the buyer’s objective other than discounting the product. If cash-flow is an issue, for example, extending credit terms may be more valuable to the customer than a discount would be.

*  What other pressure points might the buyer be facing? If time is of the essence, price is seldom as big an issue as speed of response. If your solution is the right one for the client and your competition can’t match your quality, again price is not the key issue.

*  Will this set a precedent? Your discounted price becomes the reference point for the buyer on future purchases. Who knows whether they will see you as a pushover if you agree on this occasion?

*  How will the competition respond? It might be that the buyer goes to a competitor and quotes your price, so starting a price war. Your retaliating competition may make it even harder for you to support this customer in the future.

*  What happens to trust? Discounting tells the customer you could have charged less, but you wanted to make a bigger profit from them. Discounting confuses the pricing policy that you offer. If you cut the price on this, what about your other offerings? It can only build suspicion in the buyer’s eyes.

*  What does it do to our overall pricing strategy? It may be that you can offer discounts for certain end-of-line products, or if you’re targeting sectors that carry a lower cost-to-serve. But if it’s random, what does it do to your overall pricing plans?

*  Will this account be profitable in the long run? Or will they be more trouble than they are worth? Often, customers who hit you hard for discount don’t see the value in anything you do, and can be a right pain to service. Are they worth it? It might be more profitable to ignore their requests and look for a customer who values your services more.

*  If you’ve diagnosed the buyer’s problems before discussing price, you will have knowledge of what is more important to him than price. So, what frightens them more than the price? Is is poor quality from a cheaper competitor? Bad credit terms from another supplier? Find out if there’s something more important than price in his eyes.

These thoughts will help you position the request for discount in a clearer way, and help you determine the level you offer, if you must!

Happy Selling!

Sean

Sean McPheat
The UK’s #1 Authority On Modern Day Selling
MTD Sales Training

Have you downloaded my latest report “The Sales Person’s Crisis”? Over 10,000 sales pros have.

Click on the image below to find out why you’re very existence as a sales person is in doubt…

What’s the best way to get prospects to come to you? How can you build up your reputation with clients and prospects, so that you become the source of information for your industry?

Our research has shown that buyers like dealing with salespeople who can offer value, quality and service for their business. And what’s the best way to prove you can do that?

By making them believe you are an expert in the field that their business cannot do without.

By partnering with you, businesses should feel that they are getting a head-start on their competition. Your advice and support can help them symbiotically improve their business. And by making it a personal relationship, clients feel like you are helping them look good in their customers’ eyes.

So what’s the best way of showing your expertise? By providing relevant, informative, valuable and educational material that offers real value and personal benefits to your customers.

Firstly, think of the questions that are on the lips of many of your customers. You know the ones…you get them all the time. These questions can form the basis of information that can be drip-fed to your client base on a regular basis.

Imagine opening an email that asks a question you’ve been wondering about for ages. You then see an answer that would work for you. How would you feel about the person who wrote that email? You’d trust them for more information, maybe even proactively asking them for more.

That’s how your customers could view you, if you take time to set yourself up as an expert in your field.

When you’ve thought of some tip and ideas that would benefit your customers, turn them into a series of tips in email format, approximately five in total.

You can put one tip in each email, and ask the prospect to watch out for the next four. The tip should be practical, informative and instantly appliable. That way, they see your email as something they should open when it arrives.

What can you talk about in your email series? Suggestions might include:

5 ways to improve customer retention

The 3 best ways to increase customer loyalty

5 common mistakes when marketing your product…and how to avoid them

How to make sure your IT department supports you

Getting the best out your older employees

Ensuring you get the best deal from your suppliers

Make sure they are topics that would appeal to the prospect. Topics like ‘How to choose the best office furniture’ is clearly a sales-pitch and wouldn’t be opened by the majority. Think of it in terms of you creating awareness of how you can assist their business, and you achieve the goal of them reading your message. Don’t make it a pitch for your product…build leverage for yourself first.

Each campaign should position you as an expert in your field and you’ll be viewed as a trusted source of information by your prospects.

If you want some suggestions for subjects you could include in you email campaign, just ask and we’ll share some ideas.

Happy selling!

Sean

Sean McPheat
The UK’s #1 Authority On Modern Day Selling
MTD Sales Training

Have you downloaded my latest report “The Sales Person’s Crisis”? Over 10,000 sales pros have.

Click on the image below to find out why you’re very existence as a sales person is in doubt…