6 Ways To Fight Demands For Discounts

6 Ways To Fight Demands For Discounts

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Since the recession began there seems to have been more focus on price and more pressure for sales people to discount their products and services.

What's a sales person to do?

Here are six things you can do to win the battle and reduce the amount you have to discount.

Ask better (aka tougher) questions to REALLY determine your prospect's buying motivators. This sounds simple but few sales people have developed the ability to ask tough, penetrating questions. The purpose of these questions is to gain a thorough and accurate picture of your prospect's situation. The days of asking easy low-value question have long gone.

Help the other person see the impact of the problem. I first came across this concept in "Questions That Sell" by Paul Cherry. This questioning technique means that you articulate the problem in terms that the other person can relate to. For example, "Mr. Jones, you mentioned that your current shipper has caused damage to your products at least twice in the last month. What did those damages cost in terms of repairs, customer perception and your time?"

Become more effective at positioning your offering. Demonstrate exactly how your prospect will improve their business by implementing your solution. This will increase your value and reduce heavy discount demands.

Discuss ROI. You also need to discuss the return on investment (ROI) in terms that make sense to each person. Talk about increased market share, revenues, employee morale, or reduced cost of sale, errors and mistakes, employee turnover, etc. Use case studies and customer testimonials to reinforce the impact your solution can have on your prospect's business.

Learn to negotiate. Over the years I have noticed that many sales people are not good negotiators. They quickly resort to discounting or demands because they are afraid of losing the business. Negotiating is a learned skill and one that takes constant reinforcement. I once attended a conference and sat beside a VP of Sales for a large aggregate company. When I questioned his motive for attending a negotiating skills session (he had more than 15 years of experience) he stated, "I can always learn something and a program like this always reminds me of something I have stopped doing or need to continue doing."

Always be ready to walk away. Know when a deal doesn't make good business and don't hesitate to walk away from a sale if you aren't going to make money or if the customer is going to be an on-going source of frustration.

These six strategies may simplify the process but they can make a significant difference in your top lines sales and bottom line profits. It is critical to remember that every time you discount a product you need to generate more revenue to make up for the loss in bottom-line profits.

About the Author:
Do you know what sales blunders are costing you money? Get a FREE audio program, Sales Blunders That Cost You Money and two other sales-boosting resources by subscribing to Kelley's newsletter at http://www.Fearless-Selling.ca.



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