When a customer begs you for a discount you can simply reply with yes or no, or you can employ a strategy to address the request and reposition your offering in a more valuable light.
How? By asking why it’s important to the customer they receive a discount?
Their response will tell you what they’re really seeking and why it’s important to them.
A request for a discount is a “stated” or surface level need, but there is always a silent undercurrent motivating the request beneath the surface.
Here are a few examples:
Stated need: I would like a discount on this product.
Unstated need:
What’s motivating the request for discount? This is critical to understand before responding. How you address the request and frame your response will determine your potential to make the sale. If you have a structured selling approach it will mean leading your customer through your sales process and ensuring your customer has buy-in at each stage before proceeding to the next.
Getting to the heart of the unstated need is the tricky part, this is because the customer is uncomfortable revealing themselves too much, particularly to a stranger, so this is were building rapport and developing a sense of commonality becomes essential. The most effective way to do this is to understand what factors are motivating their buying decision.
What is really important to your customers should be important to the salesperson. This is called demonstrating “empathy”, and it takes a thoughtful approach to selling.
1. Does the customer have all the available funds to make the purchase? Maybe they really want to buy it but can’t quite afford it? In this instance, perhaps a simplified version of your offering is more relevant and they can upgrade later. Alternatively, you could explore structuring the payment terms – that is, finance or in-house payment plan.
2. If your customer thinks you are charging too much, then explain all the extra features and after sale service you offer, and how important that is to them. If you don’t have any of these services in place, perhaps think of similar ideas that will benefit your business and customers.
3. If your customer can buy the same product cheaper elsewhere, and this is true, ask yourself why? Do you need to rethink your pricing and tweak your selling-process?
4. If the customer doesn’t trust you, there is probably good reason, either directly related to your own personal communication style, or perhaps your company’s reputation, or a negative past experience. If this is the case, you need to know exactly what is driving their thinking, and then package more value accordingly.
If you customer just loves a bargain, again sell them more value. The most effective way to package more value is to offer something of high perceived value and low cost to the business. This can be used effectively to overcome the customers need to feel special and come away feeling a sense of accomplishment.
All of these things are important to your customer, so as a sales-person you must make it important to you. How? Ask them, yes it’s that simple. Engage your customers in meaningful conversations by taking a genuine interest in them and their best interests.
If all of your customers are begging for discounts there is probably good reason for it.
Is your offering priced in line with fair-value – that is, market value and competitive forces?
There is no right or wrong answer to discounting; the answer lies within your customer’s perception. The adage “the customer is always right” is true.
However, the customer’s perception may be limited by an unclear understanding of what your value really means. If that’s the case, then show them. Talk to them. Engage them. Listen to them. They will tell you everything you need to know about your business and more, including the appropriate strategy to employ when discounting.
Trent Leyshan is the founder and CEO of BOOM Sales! a leading sales training and sales development specialist. He is also the creator of The NAKED Salesman, BOOMOLOGY! and the Empathy Selling Process.
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