When a prospect asks for a discount, what do you do?
Many of us simply give it and accept a lower profit on the sale. This is fine if you have a clear reason for giving it. Perhaps you wanted to keep a competitor out, or you never intended to charge the full price you asked for, but what do you do if you don't want to give the prospect a discount and do it simply because you fear losing the sale?
Street-Smart Marketers will often try up-selling!
A typical up-sell is when you offer something more that would benefit the prospect at the point they have agreed to buy. This is the time when they have the greatest potential to buy more. McDonald's, "Would you like fries with that?" and Wendy's, "Would you like to biggie size that?" are perfect examples and a good proportion of their profits are generated by these simple questions.
Typically when a prospect asks for a discount, they have made up their minds to buy, all they are looking for is a deal. They want to feel they have got something special, that most people don't get offered. If you take advantage of this you can offer something additional at a lower margin, and increase the overall profit on the sale, while avoiding cutting your price.
So before your next sale plan an up sell strategy with your team. Develop a script for them to follow and monitor your progress. You can expect at least 30% of people to take you up if your original deal is fair and your product or service is good.
Also if you are about to lose a sale, because the prospect cant afford it, try down -selling
How to Turn a Request for a Discount to Your Advantage - To learn more about this author, visit Michael Hepworth's Website.
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