What to Do When Prospects Ask For a Discount Transcript: Hey guys, it’s Ben Lai from Sales Ethos. With Black Friday coming to a close, I thought I would address the question “What to do when prospects ask for a discount.” Now mind you, most of the time when this question comes up, people are not trying to be cheap or anything. They just want to know that they’re getting the best possible value for their money. They want to feel like they’re getting a good deal.
So what I want you NOT to do in this situation is to give away the discount without no questions asked. Because the problem with this is that it devalues your product and your service. The perceived value is going to decrease as a result of you giving a discount for no particular reason. The other problem with this is that naturally your margins are going to decrease. Not many of us are usually very happy to do that. So here are my three tips for you:
1. What to Do When Prospects Ask For a Discount: Put the ball back in their court
When it comes to clients asking for a discount, the first thing that you need to do is to put it back into their court. You may want to use this phrasing; you might want to say “Is there any reason that you can’t afford the service at this price?” So rather than making it YOUR responsibility to discount, you’re making it THEIR responsibility to find the money to afford your product and your service! This is a very strong positioning statement, demonstrating that you’re not going to be pushed around. Clients will actually respect this, by the way. You actually gain more reputation, stance, and posture as a result of holding your ground.
2. What to Do When Prospects Ask For a Discount: Always ask for something in return
Now, we don’t want to be TOO steadfast in this. We do want to show that we are flexible at the same time. So my second tip for you is that if you are going to give a discount that you do so with something in return. The key negotiation principle here is “never give away something for nothing.” So if you’re going to give a discount, you may want to ask them to have a larger order size. Or, perhaps you may want better payment terms such as them paying 12 months up front. Then, that can justify the discount. There are lots and lots of different creative ways that you can get something in return for a discount. But never, ever give away a discount for absolutely no reason.
3. What to Do When Prospects Ask For a Discount: Sell a “Foot in door” package
Now, the final thing that I’d like you to do when it comes to discounting is that if money really is a big problem, and they simply cannot afford the price that you’re asking, is to come up with a way for yourself to get a foot in the door. This is what I call the “foot in the door strategy.” What you do is you configure a product that is at a lower price point. The reason that you do this is so that you can demonstrate to the prospects that you are a good operator. That the service that you’re providing is going to give far more in value than the price that they’re paying.
Now, mind you, if you’re going to demonstrate this return on investment, they’re not going to argue about prices. When you ask them to buy a larger package, once they’ve seen the value, they’ll be much more willing to invest more. It’s more actually about the risk than it is the actual price. And so, by reducing the risk by demonstrating your quality of work, they’ll be much more willing to do business with you. You’ll have the foot in the door. You’ll be able to work with them for the long run.
Conclusion: What to Do When Prospects Ask For a Discount
So there you have it! To summarize, you need to put it back in the prospects court to ask them why they can’t afford, or if there’s any reason they can’t afford your product. Always ask for something in return for the discount if you’re going to give it at all. And finally, find a way to get a foot in the door with a smaller package that’s more affordable and lower risk for the client. This is the way you can avoid giving discounts for no particular reason.
So what do you think? What is your opinion on giving discounts? I’d love to hear your opinion. Don’t forget to click like and subscribe, and remember that integrity plus skills equals success!
Sales Ethos provides sales training in Melbourne, Australia. Led by Ben Lai, our vision is to inspire and equip sales consultants and entrepreneurs to sell with purpose, pride, and integrity. Our core belief is that Integrity + Skills = Success, and achieve this by providing business coaching, sales coaching, and sales process consulting.