A client/customer/buyer will most likely ask for a discount in any negotiation. Discounting your product/service should be your last option in selling.You may think a 10% discount is no big deal, it’s just, well...10%. There are three problems with this line of thinking:
1) Depending on your cost structure, a 10% can impact the bottom line by 20%-30%.
2) a 10% discount means you have to find more business to make up for that 10%.
3) Discounting is equivalent to ‘gifting value’.
Countermeasure 1: Offer 3 options (Good, Better, Best) in a proposal or offer. If the client says, “Can I get a discount?” Just shift down to the next lowest option. But wait, what if I offered Good and they still want a discount? Keep reading.
Countermeasure 2: Remove Item - If possible, remove a line item from the offer. You say, “Mr. Buyer, I can’t discount this but, let’s go ahead and remove an item in the proposal to bring the price within your budget. Which item do you propose we remove?” (Note: Let the buyer do the removing)
Countermeasure 3: Sell Used Unit - When I sold technology equipment, and a client asked for a discount, I’d say, “I can’t discount the product, but I do have a used one that is as good as new and still has the warranty. Will that work?” (Note: I didn’t say ‘no’, just offered an alternative.)
Countermeasure 4: Offer a Substitute - Similar to a used product, maybe you could offer a product that is similar in features. For example, you can sell a product that has limited features but has 80-90% of what the buyer needs.
Countermeasure 5: Offer a free service - Now, I use the word ‘free’ loosely here; nothing is actually free. That said, I do a lot of public speaking and I have clients who ask me for discounts. I respond by saying, “I’ll tell you what. I have a Sales (Velocity) Academy that costs $500/year/user. I’ll include 20 licenses for your sales team. That’s a $10,000 value. How’s that sound?” It doesn’t cost me anything to add 20 people. Win-Win.
Countermeasure 6: Offer a loss leader - A loss leader is a product that isn’t selling well; sunk cost. Sometimes you just want to get rid of the product out of inventory. “Mr. Buyer, I can’t give you a discount, but I will throw in an X unit which has a $7,500 value.”
Countermeasure 7: Extended Payment Plans - Sometimes just simply changing the financial plan from let’s say Net 30 to Net 90 days is enough to assuage any discount request.
💡 Courses on Sales Velocity Academy:
Death by Discounting
8 Discounting Countermeasures
Value-Centric Selling
Value Constellations
Mastering the Upsell
Value Lifters
Reduce Buyer Anxiety
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