Consumers ask for discounts, regardless of the product or service you are offering. When you are setting up a business, your primary objective should be to close as many business deals as possible without compromising on customer satisfaction. Furthermore, it would be best to keep an eye on not breaching your company’s economic constraints.
Several business organizations accept the discount requests, with the annual sale events, discounts at intervals, and promotions being the recurring events for them. Then there is the opposite end of the spectrum, where enterprises agree for discounts, with the sole purpose of closing a particular deal. In the contrast, some companies don’t find it apt to offer discounts, thereby sticking to their set price-tag, which they feel is firm and equal for all.
It’s only necessary for sales professionals to be prepared for price reduction requests while making a sale. Under preparation, they must have one or a set of responses ready for the potential consumers. The seller needs to develop responses that will contribute to the negotiation ending where everyone is content with the outcome.
There’s no denying that a discount can effectively help speed up a slow deal. Additionally, it can also contribute to creating goodwill along with offering you leverage for requesting concessions. However, you need to realize that the benefits will only be attainable by discounting strategically.
It’s vital to discuss why you must never promise your potential consumers any discount before the negotiation. When a sales professional gives in for discounts during the initial stages of a sales negotiation, they deliberately miss out on the opportunity to demand something in return for the discount. It’s a damaging precedent for one-way concessions.
There’s no denying that discount inquiries can also pose tricky challenges when the actual negotiation is in motion. You might find yourself struggling for appropriate counters during such scenarios. This is where you must use strategic responses to achieve a satisfying closure for both parties throughout the sales conversation.
Effective Ways to Negotiate with Clients On Discount Requests
During the Connect Call
- “We can certainly discuss this. However, before progressing any further, let’s figure out your projected ideal offering. That will help me to offer you an improved and accurate estimate.”
You must gauge the prospective consumer’s mind at first to better identify their goals, needs, and situation. It’s unwise to discuss potential discounts without having the complete picture regarding the deal’s closing value- this will hinder your process from settling on a final figure capable of meeting both parties’ individual needs.
Furthermore, keeping a staple response ready will help you to drive around the prospect’s request, making you genuinely interested in your agenda than the opposite party’s. It would help if you instead chose to acknowledge them. Furthermore, it would help if you to get to a discussion until you reach a mutually beneficial point.
- “Do you feel that the quoted price is becoming a major obstacle for you?”
You could also find yourself in-between scenarios where the lead’s request for a discount comes immediately after asking for the pricing information. Under most situations, this is significant because they lack the budget to purchase your product or service at the selling price. Hence they are beating around the bush to learn whether there’s any scope for a discount. If you refuse them right away, you will fail to close the deal in your favor.
In another situation, the potential customer could be capable of paying the total price. Yet they would be looking to avail a discount if there’s any possibility. Having a readymade response can assist in identifying the buyer’s motivations. If you see that your customer is not expressing any restrictions financially, go for the option mentioned above. Otherwise, you must look to delve deeper into the budget of the prospect to get them an appropriate deal.
During the Sales Presentation Or Product Demonstration
- “We can surely discuss numbers. However, both of us must be on the same page about this solution.”
When the customer requests for discount post your product or service demonstration, you must realize that they desire to make the purchase. If they agreed to a presentation or demonstration, they are genuinely interested in your product. The discount request at this stage means they are considering the finer details of the purchase. It would help if you continued to hold your stance against any promise for a discount on the product’s total price.
However, don’t promise them a discount just yet. Giving in to their request will project you as overly eager to close the deal- this could work against your best interests during the negotiations in the latter stages. Additionally, it will develop second thoughts inside the prospect’s mind, with doubts over wrongful valuation of your product in the first place.
You could effectively employ this response as a tool to delay the conversation. Through this response, you are not entirely dismissing any thought of a discount, at least until both parties settle on mutual grounds.
Successful entrepreneurs and business experts have primarily used this simple yet effective response when asked for discounts during the middle of a negotiation. In most cases, the prospects will find themselves scrambling for a response after your counter-response, which results in the prospect paying the entire price.
It’s necessary to mention that you don’t dismiss the request upfront since they might also have some valid reason, you can use this word occasionally. The whole thing comes down to customizing the value exchange. It might be the case that your buyer is struggling with a seasonal budget or experiencing a short-term cash deficit. One could arrange for some discount under such scenarios. However, it would help if you always looked for in exchange as well.
- “We can certainly find a way for a discounted price, only if you..[Extend the contract, choose the premium package, readjust the payment terms]”
There’s no denying the fact that compromise often contributes to accelerating most negotiations. You can settle for positive bargaining with your potential buyer by offering a quick discount. It is essential to mention that entering any negotiation with multiple non-monetary requests of great assistance, as they contribute to drawing new negotiating possibilities beyond price.
- “How much is your ceiling for a reasonable discount?”
Several industry-level sales professionals resort to using the potential customer’s response to navigate the question around. For instance, if the product is priced to $10,000 and your buyer says they would like a 15% discount, you must verify whether the product pricing is beyond their budget or they don’t feel the need to pay so much. This way, you will be able to gauge the customer’s mindset and you will know whether they are not serious about buying your product or if they cannot afford it altogether. If you find that the latter is the reason, you could arrange for some reduced or less comprehensive option.
Responding to a discount request sample letter:
- “How can we better our offering to match the price I quoted you?”
Suppose you ever find yourself in a scenario where the prospect is deliberately pushing back on price. In that case, you must assume that the prospect doesn’t have the necessary budget for your product. It could also be possible that you were not able to sell the product efficiently. By asking this question, you get the scope to explore untouched gaps that might still exist. It essentially provides you the opportunity to integrate value for the offering.
- “Do you think you will be comfortable with a month-to-month plan to close today?”
While this may not always be viable for your business, a month-to-month plan can benefit your negotiation to get prospects to close the deal without necessarily discounting your product. It’s essential to mention that monthly plans are typically more manageable for people to get approved than yearly contracts. This option will provide you the opportunity to establish the merit of your product to your prospect and earn the annual contract – or the cross-sell or upsell in the future.
- “How about we connect next quarter when you can provide more budget?”
There might be times when your solution is not aligning with the prospect’s budget. It would be better to figure this out early before investing too much time in closing the deal. It would help if you considered all available avenues to find a solution for the prospect, which’s sufficiently enthusiastic about your offer. However, if they are falling short of the budget, you should ask politely to reach the best solution immediately.
Over to you…
There’s no denying the fact that with this curated list of responses, you will always have a way around with the term”discount” from your prospects. It is important to gauge the prospect’s intent and move ahead strategically in the sales conversation. Remember, there is nothing wrong with providing discounts to your prospects but you need to ensure that the deal is beneficial for your organization as well. Ideally, it should be a win-win situation for you and your customer.