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Everybody wants a discount. I certainly do. But most of the time I don’t get one. Can you say the same about your customers?
Let’s look at why, as a consumer, I don’t get a discount.
Maybe the company doesn’t offer discounts. Obviously, then we have to pay full price if we want what they sell. Grocery stores don’t negotiate with normal shoppers. You can’t negotiate the price of bananas.
Or maybe the company gives discounts, but you have to know how to get it. Did you know if you ask a clerk at Macy’s for a discount, they almost always have a coupon they can pull out? Just ask. Of course this works for Macy’s because not many shoppers ask for discounts.
Chances are your company is probably the latter type. You are willing to give discounts, but you don’t want to.
If you don’t want to then why are your salespeople signaling that discounts are available?
Salespeople say things like, “the LIST price is …” or “most people pay …” or “our starting price is …”. Saying anything like this causes every buyer to ask for and expect a discount.
If you walk into Macy’s, and the clerk says, “if you like something but it’s too expensive, let me know. I may be able to help.” Of course, you will now ask for a discount. That’s what your salespeople are doing.
So, why do they do this? They do this to tell the buyer that price won’t keep us from making a deal. They want the buyer to know that if the price is too high, we have room to make it affordable. But they aren’t waiting for them to ask.
Your salespeople must deliver the price as though it is a fixed price, to focus on value and deliver price confidently. Only then will you be able to ensure that you are only discounting when you have to in order to win the deal.
So how do we help them do that? One potential approach is to stop all discounting for a period of time so salespeople remember what it’s like not to be flexible on price. When they can’t lower the price, they have no choice but to sell value. They will learn to deliver the price confidently. After all, other buyers paid that price.
Help your salespeople learn they can win deals at your prices. This tiny hack can make a big difference in your achieved prices and profitability.
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Tags: pricing, pricing skills, pricing strategy
