Question: What are the ways to respond when the prospect asks for a discount and how to win a price negotiation?
Answer: Cecilia, great question. The answer is easy to learn, but hard to implement. “Just say no”.
There are two main reasons why someone asks for a discount:
They don’t value your product enough.
They think they should ask
If they don’t value your product enough, you should be communicating value. Listen to what problems they have and then explain how your product or service solves their problem, what results they could expect and how much that is worth to them.
Sometimes they don’t see the value of your product relative to your competitor. Again, do the same thing as in the previous paragraph except you should focus on the problems that you can solve better than your competitors.
Regardless, just say no to the discount. If they don’t see the value, then they are probably not the right customer for you.
The second reason is probably the more common reason. They already chose your product but would rather pay less. Who wouldn’t rather pay less? Of course. But you’ve already been chosen. Just say no.
Surely you have asked for a discount for something before. You wouldn’t have asked if you didn’t want the product. Odds are good that if you don’t get the discount you would still buy it. The same is true with buyers who ask you for discounts. They already like your product, they are just haggling.