Written by Sean McPheat |
8 May, 2009
We’ve all been there…
“What’s the best price can you do? Can you offer me a discount?”
And then the negotiation starts!
The fact that you’ve received that response means you are nearly there in the first place! And now with just the right approach you can get back to the office and update your CRM system with a CLOSED WIN in next to no-time!
My approach to responding to discounts and counter offers is the following:
VALUE X 2 MINUS 1 PRICE
What this means is that when you’re faced with a “Can you give me a discount?” response you should not just cave in to start with. Instead you should respond with a value building statement and stay firm. If they come back again, then do exactly the same. But if they come back a third time then you should give a concession and ask for something in return.
You’ll be amazed at how little you actually have to give discounts by standing firm!
Now I love getting referrals in exchange for discounts because it’s money in the bank.
So I’d say something like this “I’ll tell what I’ll do Joe. I’ll reduce the price by 15% if you can give me the names and phone numbers of 5 quality referrals that you’ve worked with who also need this service too. Is there any other reason why we can’t go ahead with this?”
Quality referrals are like gold dust and they have a monetary value too because the replace advertising spend, so that’s why I really like getting them in exchange for a slight discount.
So, in summary:
Remember VALUE X 2 MINUS 1 PRICE
Build the value twice before you even entertain lowering your prices and then if you need to lower your price do so by asking for something in return.
In today’s economy you’ll come across a lot of people who will ask for discounts so practice hard on what you’ll say and how you’ll say it when faced with the “Can I have a discount?” response!
The Sales Jedi