Offering a discount to a customer can be a great way to tip the scale in your favor and land the person’s business. However, in many cases you won’t be able to lower your price, either because your price is already as low as you can go or because the customer is asking for too much.
When a customer asks for a discount, here’s how to respond to keep the conversation going without immediately cutting your price:
“Why?” For some people, asking for a price decrease is automatic, regardless of the product. If your product is worth the price, you shouldn’t offer a discount and devalue it’s worth, says speaker and writer Jurgen Appelo.
If the person offers up a truly valid response, you will have an opening to talk about the value of your product or the features you offer that the competition doesn’t. At the least, you weed out people who were never interested in doing business with you in the first place.
“What do you feel is a reasonable discount?” Sean McPheat, a sales training director, suggests using the person’s response to dig deeper into the person’s thinking. For example, if the prospect wants a 20% discount on your $10,000 product, you might ask “Is it that you don’t want to spend more than $8,000 or do you feel our product isn’t worth $10,000?”
If it’s the latter, ask questions and offer responses that build the prospect’s faith in the value of the product. If it’s the former, discuss how your product will save the prospect money in the long run. As a last resort, negotiate other options, such as throwing in freebies or offering a smaller discount.
— Adapted from “6 Ways to Respond When Your Prospect Asks for a Discount,” Michael Pici, Hubspot, https://blog.hubspot.com.