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Discounting Sales: Don’t !!!



 Sales discounts and negotiation


Customers are trained to asked for sales discounts and negotiate.  Why?  Because salespeople often oblige and fail to realize that the customer already perceives a benefit and wants to maximize value by getting these benefits at a lower price.  And salespeople, hearing repeated price objections, begin to themselves believe that their products and services are not worth the asking price. When we lack 100% confidence and conviction in the value of our solutions, it shows—and the end result is that customers succeed in negotiating sales discounts.  So, what can we do?


  1. Quantify the benefits of your product or service to the customer and show the financial savings!  Develop an ROI (Return-On-Investment) worksheet.
  2. Reference other customers who realized savings quickly.  Clip relevant articles that support the benefits and payback of your product or service.
  3. Avoid on-the-spot sales discounts as lowering prices can deflates the customer’s perception of the value you offer.
  4. If you do need to provide sales discounts, don’t do it without asking for something in return (e.g. a commit for certain quantities or shorter payment periods).  And if you need to give something to secure the order, consider including additional products or services in order to minimize the financial impact on your firm (e.g. you provide the customer with a $250 service that may only cost your firm $100 to provide).
  5. If you have the ability to make concessions, don’t let the customer know, or you’ll invite additional negotiations.
  6. If the customer does ask for sales discounts or concessions, determine his or her motivation prior to responding.  In many instances, granting sales discounts or concessions will not resolve the issue and will hurt your chances for the sale.



Possible Customer Motivations for Requesting Sales Discounts

  • The customer is not sold and does not believe in the value of your proposal
  • S/he is comparing “apples to oranges” and doesn’t understand why your product costs more
  • The customer is sold but does not see how the benefits she’ll get justifies the price
  • S/he is sold and as a good businessperson is simply trying to see if s/he can get a better price
  • S/he is sold but wants a “personal win” (e.g. a “good deal” in order to look good to the boss)


Remember, while it is common for customers to ask for sales discounts and concessions, the best and most skilled salespeople are adept at securing orders by stressing value rather than reducing cost.

All Rights Reserved.  The Sales Alliance Inc.  San Diego, California.



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