Discounting: DON'T DO IT !!!
Discounting: DON'T DO IT !!!
1 - Quantify the benefits of your product or service to the customer and show the financial savings! Develop an ROI (Return-On-Investment) worksheet. Reference other customers who realized savings quickly. Clip relevant articles that support the benefits and payback of your product or service.
2 - Simply lowering the price deflates the customer's perceived value of your product or service. So, if you do need to lower the price, don't do it without asking for something in return (e.g., a commitment for certain quantities or shorter payment periods). And if you need to give something to secure the order, consider including additional products or services in order to minimize the financial impact on your firm (e.g., you provide the customer with a $250 service that may only cost your firm $100 to perform).
3 - If you have the ability to make concessions, don't let the customer know, or you'll invite additional negotiations.
4 - If the customer does ask for discounts or concessions, determine his or her motivation prior to responding. In many instances, granting discounts or concessions will not resolve the issue and will hurt your chances for the sale. Possible customer motivations include:
* The customer is not sold and does not believe in the value of your proposal
* S/he is comparing "apples to oranges" and doesn't understand why your product costs more
* The customer is sold but does not see how the benefits s/he'll get justify the price
* S/he is sold and as a good businessperson is simply trying to see if s/he can get a better price
* S/he is sold but wants a "personal win" (e.g., a "good deal" in order to look good to the boss)
Remember, while it is common for customers to ask for discounts and concessions, the best and most skilled salespeople are adept at securing orders by stressing value rather than reducing price.
Discounting DONT DO IT - To learn more about this author, visit Craig Arnoff's Website.
Like this article? Share it with your friends
Customers are trained to asked for discounts and negotiate. Why? Because salespeople often oblige and fail to realize that the customer already perceives a benefit and wants to maximize value by getting these benefits at a lower price. And salespeople, hearing repeated price objections, may themselves begin to believe that their products and services are not worth the asking price. When we lack 100% confidence and conviction in the value of our solutions, it shows---and the end result is that customers succeed in negotiating lower prices. So, what can we do?
1 - Quantify the benefits of your product or service to the customer and show the financial savings! Develop an ROI (Return-On-Investment) worksheet. Reference other customers who realized savings quickly. Clip relevant articles that support the benefits and payback of your product or service.
2 - Simply lowering the price deflates the customer's perceived value of your product or service. So, if you do need to lower the price, don't do it without asking for something in return (e.g., a commitment for certain quantities or shorter payment periods). And if you need to give something to secure the order, consider including additional products or services in order to minimize the financial impact on your firm (e.g., you provide the customer with a $250 service that may only cost your firm $100 to perform).
3 - If you have the ability to make concessions, don't let the customer know, or you'll invite additional negotiations.
4 - If the customer does ask for discounts or concessions, determine his or her motivation prior to responding. In many instances, granting discounts or concessions will not resolve the issue and will hurt your chances for the sale. Possible customer motivations include:
* The customer is not sold and does not believe in the value of your proposal
* S/he is comparing "apples to oranges" and doesn't understand why your product costs more
* The customer is sold but does not see how the benefits s/he'll get justify the price
* S/he is sold and as a good businessperson is simply trying to see if s/he can get a better price
* S/he is sold but wants a "personal win" (e.g., a "good deal" in order to look good to the boss)
Remember, while it is common for customers to ask for discounts and concessions, the best and most skilled salespeople are adept at securing orders by stressing value rather than reducing price.
Discounting DONT DO IT - To learn more about this author, visit Craig Arnoff's Website.
Like this article? Share it with your friends
| |||
| No article feedback found. | |||
| Leave Your Feedback | |||
|
|||
|
| |||
| Before you succumb to the temptation to win new business by offering a discount take a moment to consider these seven problems associated with discounting. |
|||
|
| |||
| As a business owner you’ve probably been asked to give a discount. How did that make you feel? Your response to that request is critical to the sustainability of your business as well as to your confidence. |
|||
|
| |||
| How many times have I heard this cry from clients? Always makes me wonder if corporate citizens understand and appreciate how hard selling can be - especially if you have little air cover and not much ammunition.
... |
|||
|
| |||
| Discounting is a short term fix with long term consequences! While there is some disparity among experts, most say that even in the current marketplace, discounting can cause long term damage to your overall busines... |
|||
|
| |||
| If you are a small business owner the best way to sustain and increase your revenues during these difficult times is to avoid marketing pitfalls and think proactively. This article outlines steps to help you create... |
|||
| |||
| interest free unrepayable capital 4 Australian entrepreneurs | |||
| Different Types of Funding | |||
| |||
|
To learn more about the Evan Elite Author Program please contact us. | |||
![]() | |
![]() Craig Arnoff (Visit Craig's Website) Craig Arnoff holds Bachelor and Master's degrees in Marketing, Finance and Business Management. He is the author of Cooperative Selling™ and Cooperative Telephone Selling™, and has conducted workshops for over 10,000 sales and telesales professionals in the technology and services industries. The firm, which has been in business for 20 years, specializes in helping clients boost sales results via sales, sales management and telesales training, coaching and consulting programs.
| |
![]() |
|
|
![]() |
|
|
|
![]() |
| Modeling the Masters: Learn the true secrets behind Walt Disney's business success factors & grow your company! Video produced by Phanta Media |
|
|
![]() |
| Have you written articles that would be of value to entrepreneurs? Become an expert on our site by publishing them! Expose yourself to a wide audience, drive more traffic to your website and get more sales! Click Here for details. |
|
|
![]() | ||
|
| ||
|
|
|
Get advice & tips from famous business owners, new articles by entrepreneur experts, my latest website updates, & special sneak peaks at what's to come!
|
![]() |
|
|
![]() | ||
|
More PR Resources
Press Release Builder | ||
|
The Top 10 GTD Times Posts
Best Posts for Productivity | ||
![]() | ||
|
|
|
|
|
||||||||||||||||||||||||||||||
|
|
||||||||||||
















