Many, many salespeople use discounting as a go-to tactic for securing sales. If the prospect seems even a little hesitant, they’ll offer a price cut. The big problem with this approach, of course, is that such salespeople are literally giving away money. Not only does this cut into their own profits via their commissions checks, it cuts into the company’s profit margins as well. Too much discounting can literally drive a company into bankruptcy.
The first step in breaking discount dependency is changing your mindset. Consider discounts no longer part of your sales toolkit. If a prospect seems hesitant, don’t jump to the conclusion that price is the issue – ask why he seems uncertain, and then use that information to meet whatever objections come up. Often these issues will have nothing to do with price.
Another common discounting point is when a prospect makes a comment related to pricing, like, “I didn’t think this model would be that expensive.” Again, many salespeople consider this a price objection and respond by offering a discount. This kind of comment is just that – a comment, not an objection. The best response is usually no response. Simply continue with your presentation.
When an actual price objection does surface, a discount still isn’t the appropriate response. Price objection mean that your prospect believes the value of your product is less than what you’re charging for it. So to meet the objection, you just need to explain why the value is actually greater than the prospect realizes. This may call for a few more questions on your part to verify his hot-button needs so that you can go over how the product meets those needs.
Experienced buyers will often ask for a discount regardless of how they actually feel about the price you’ve provided. Your prospect may in fact think it’s a great price, but she’ll ask anyway because she has nothing to lose. Instead of immediately giving her a discount, simply say something like, “We don’t discount because our standard price is already the best possible price we can offer.” Many buyers will simply accept this statement and proceed to buy at full price.
If a buyer offers more resistance on the subject of price, you should try to uncover the specific reason why he thinks it’s overpriced. He may be comparing it to a competitors’ product that doesn’t have the same capabilities, or it may be that he last shopped for a similar product many years ago and he doesn’t realize that the market prices have gone up.
Sometimes a prospect will want to buy but truly feels that he can’t afford to pay your price. In that case, you can sometimes help him to find a way. It may be that he doesn’t have the money now but will be able to squeeze the purchase into next month’s budget. Or you might be able to offer an extended payment plan, where the prospect pays full price but does it in installments.
Prospects who absolutely refuse to do business with you unless you lower the price will be terrible customers. In most cases, your best bet is to walk away from those sales. Super cost-conscious customers will harass you constantly looking for a better deal, and they’ll jump ship to your competitor the second they find a better offer.