Written by Sean McPheat |
How do you react when your customer requests a discount?
Usually, we react in one of two ways…either with disappointment that we hadn’t built up the value in the customer’s eyes before discussing price, or with anticipation that we may get a sale if we both negotiate to an agreeable figure.
How about trying something different to keep the customer’s mind away from discounts and onto something more advantageous to both of you?
Instead of offering discounts, how about offering bonuses?
Discounts are price reductions and lower your profit margins; bonuses are earned by the customer, rewards for performance and maintain the value of the service you are offering.
When you’ve offered a discount, it confirms a lower price can be maintained in the future, and sets a precedence for future business with you. But the expectation of a bonus encourages the customer to do more.
Here are some more advantages of offering bonuses to the customer:
They maintain the base price
They can be based on a quantity you are trying to achieve
They can encourage a customer to go for a threshold level they hadn’t thought of before
They don’t set a future precedent
They don’t have to be monetary
You pay the bonus after the order and payment, rather than up front
All these encourage the customer to think of benefits they will get rather than how much they can reduce the costs. They also help you to concentrate on offering value rather than devaluing your services, which is what discounts inevitably end up doing.
The UK’s #1 Authority On Modern Day Selling
Originally published: 29 November, 2010