When you are sold on the value, you won’t be discounting.
Some salespeople when they feel they are not going to get the sale can get into the habit of offering discounts.
The client was sold. You gave a price. They asked for a discount. You gave it. No reason given.
Why? Why would we discount our solution?
It comes down to the value you hold – not your client – on your solution. And whether you think it should be cheaper.
The first time price and discounts come up is before you have even spoken with a client. That’s right, you have made the decision to discount or not discount based on your value of your offering.
You have made this decision in your office. It may have been impacted by:
- A colleague saying ‘This is a bit pricy, people often want it discounted’.(The price is too high, we need to bring it down to what it should be) .
- Your boss saying ‘Offer a discount, just get in the business’. (Discount is a word that’s important. Value of our offer isn’t).
- A client saying ‘I can buy it cheaper elsewhere.’ (You believe that, and don’t question whether the solution is apples for apples).
- Marketing/Brand saying ‘This is expensive but …’ (‘Expensive’ is never a word you want used in your business)
- Colleagues always discounting to get in the business. (This normalises discounts).
The reality is the subtle message you picked up is ‘the value of what we have isn’t as high as the price we are charging’, or, simply ‘we are charging too much’.
And … you believe it.
You are not sold on that price. And next thing you know, you too are thinking the price is too high, you too have taken your eye from value and onto price.
You are driving the price down. If you sold it at full rate, you might occasionally feel guilty as you know you would have given a discount.
What can you do to counter this as a sales person and as a leader?
✔ Solution/product training on the value of your offer—what the client is getting, and what the value is to the client.
✔ Internal language—always about value, rather than about discounts.
✔ Success stories—share case studies about what the client gains through this solution.
✔ Reward success based on keeping the price at a premium not on getting the business in.
When you are sold on the value, you won’t be discounting. Instead you will be investigating the clients’ issues and educating them on the value of your solution.
As the trusted provider, when you have such certainty than they are sold on it too. They will trust you and believe your offer is worth the price.