People love a discount.
You do. I do. We all do!
But that means that your customers do too. Being asked for discount is a very common occurrence in any sales process. Unfortunately, TV shows such as The Apprentice and Bargain Hunt have actually encouraged a lot of bartering and haggling; which of course is good for the person seeking the discount, but not necessarily good for the person having to defend their prices.
As we have mentioned in a previous articles, a lack of trust can be very harmful for your sales process and many people will ask for a cheaper option when they do not trust you. So therefore it is vitally important that you develop trust, and a relationship with your prospect before you ask for a sale.
But what happens if you do all that and yet your prospect still asks for a discount? Here are our three top tips to overcoming the price objection:
- Clarify the objection.
People will tend to use the price objection as a way to hide behind the fact they do not want to buy your product or service, or do not trust you. So, first of all, why don’t you ensure that it is the price that is putting them off and not the whole idea of your product or service. The simple question of; “If this was completely free of charge, is this the product/service you would opt for?” Of course, if they say yes then you know for sure that they have a need so you can look to address the pricing issue in a way that suits you and the customer.
- Sell the value.
Normally discounting a product or service too soon can undervalue the offering far too quickly. I don’t know about you, but it really turns me off when people can create a 50% discount out of thin air; it leaves a bitter taste in my mouth. Here, you can either add value on to your sale to try to make the deal sound more appealing; such as adding £100 of services to your package as opposed to discounting by £100. Or, you can discuss the return of investment that your offering will provide, or the long term savings that your offering will deliver. If your offering will save your prospect £20 in labour per day then remind them. If your offering will be able to provide a return of investment then be sure to remind your prospect of those facts!
- Stay quiet.
Sometimes, a bit of silence speaks louder than words. If you are ever faced with an objection, not necessarily just a price objection, a bit of silence will encourage the prospect to speak up and to explain their reasoning. It is from this explanation that you can then try to find the right solution that will not only suit your prospect, but your business too.
Remember; if a prospect is asking for a discount it does normally mean that they are interested in your product or service. But be warned; do not be so quick to discount your offering. Hold your ground, sell the value and allow the prospect to explain their reasoning!
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