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Over Coming Price Discounting!
| Guest post by: Allan Kent |
Article Overview: If you are in sales, you will have come across the expression "Can you sharpen your pencil?" or something similar - meaning that they like what you have on offer but don't want to pay the asking price for it. Your customer is asking for price discounting, or price haggling. This analogy of the 3 legged stool has served me well in my sales career. If it makes sense to you, try it for yourself. It certainly presents an extremely visual image.
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Over Coming Price Discounting!
Imagine a three legged stool, sitting perfectly level and stable as it was designed to be.
It is a bar stool, so it sits nice and high off the ground. Each of its legs are represented by:
• Price
• Quality
• Functionality.
This stool represents what you are trying to sell and which the customer is trying to haggle the price down
So, by taking the price down on this stool, it means you are shortening the Price leg. This immediately means that the stool is no longer level and now looks out of sorts. The remedy is either to shore up that leg, which will certainly have an impact on its visual appeal and no doubt its stability, or to trim the Quality and Functionality legs to match!
Lets assume that you do trim all 3 legs evenly. OK, the stool is now level and stable, but it is no longer the same stool it was. Will it match the other stools, will it look right against the bar?
I accept that this example is highly simplified, but it does still represent the impact cutting price can have to the end product or service. It's worth thinking about if you're in sales yourself, and certainly worth considering if you're shopping around for something and price is your main criteria.
The Dangers of Discounting
Why Discounting is Hazardous to Your Business
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Build Value Not Discount To Avoid Becoming A Commodity in Your Industry During Good or Bad Times
Mike Krause’s Sales Sense #14: Discount Doom! How much is enough?
Selling Value
Sales is Discounting Again
Discounting Prices: How Low is Too Low?
How to provides buying incentives without discounting
How to Keep Sales Up In A Down Economy
Discounting to Create Cash Flow? Be Careful.
Real World Advice for Retailers - Loss Prevention, Chapter 3
Small Business Coach - Do Your Pricing Strategies Maximize Your Profits?
Customers are begging for discounts but we don't want to drop our prices. What selling strategies should I use?
Does Volume Make Up for Low Price?
Discounting Invoice Factoring Financing in Canada
Discounting is For Wimps
Supersize Your Canadian Business Accounts Receivable Finance Success via Confidential Invoice Discounting Factoring
Objectionable Objections Handling objections in a positive way
Understanding the True Cost of Factoring and Invoice Discounting For Canadian Firms
Article Tags: Dealing with price objections, price discounting, price haggling, price objections
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About the Author: Allan Kent RSS for Allan's articles - Visit Allan's website Currently the Business Development Manager for one of New Zealand's leading website companies, Labyrinth Solutions, Allan has a wealth of knowledge and experience in the field of marketing and sales. This started back in 1985 with an Honours degree in Business from the UK, and supplemented with a further 25 years of practical experience both directly in sales and in marketing roles. A large part of his current role at Labyrinth is guiding clients with their online marketing requirements, making sure they really do get the best from what they do online. Other articles can be found at http://www.website.co.nz/Blog/default.aspx and you can follow Labyrinth on Facebook at http://www.facebook.com/LabyrinthSolutionsClick here to visit Allan's website   How To Get Better Results from Your Adword Advertising What Can Gordon Ramsay Teach Us About Website Marketing Why Thinking of Your Website as a Journey rather than just a Destination will lead to Better Website Results 5 Reasons Your E Commerce Site Might be Underperforming Social Media Networking for Business are you covering all the Angles |
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