How to avoid discounting
May 10, 2024
"Can I have a discount?"
Here we go!
As salespeople we know we shouldn't
It eats into profitability
Disturbs the win-win balance
But responding "No" is easier said than done
Let's explore with
🟠 Orange Hat Thinking 🟠
Ways to address the discounting question include
🔶 Sell value
Create an alternative to discounting by focusing on value selling
This involves understanding the customer's needs and goals.and then demonstrating how you can help achieve those outcome
Highlighting the value and benefits of the offer to justify the price without resorting to discounts
🔶 Adjust offer
Explore creative solutions such as
- bundling products or services
- offering incentives
- providing additional support or services to add value for the customer
🔶 Prepare 'argumentation'
What are the factors affecting the price?
Maybe the customer doesn't understand these and explaining why will help
Raw materials, economic factors, El Nino... many things could have an impact
🔶 Ask why
Some customers might be 'trying it on'
They ask automatically
Why not?
We've conditioned them to do this by agreeing to discounts too easily
So probe to understand what they would be willing to lose from the solution to achieve a lower price if that is what they genuinely want
Ultimately, the key is to shift the conversation from price to value and show how the product or service can positively impact the customer's business or life
This is our job as sales professionals
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