Let’s talk discount strategies. So you just played chicken on your discount in December and you lost.
Now, your prospect still wants the discount.
If you haven’t shown your prospect the real Economic Impact of your service, you are simply paddling upstream.
In a rainstorm.
With a teaspoon as your paddle.
And it’s made of plastic.
Now, they will tell you, “Give me the discount or we are going to your competitor.”.
And here is what we are suggesting you say to them:
“So…how much time is it going to take you to go back to them and work out the price?
How many conversations and with how many people in your own organziation will this take?
Specifically how many people hours in your own organization will this take?
Now, because time is finite, what other projects will get delayed based on these conversations?
What is the Economic Impact of that to the organization?
So you want to go through all pain of time and conversations which actually impacts your organization significantly more than ____?
Seems to me like we should just move forward.
How would you like to proceed?”
Wait for their answer.
Then wait 3 seconds before responding.
“I am confused. All of our conversations and documentation specifically said the contract had to be signed by <date>. And I am confused about where it falls upon us to adjust based on something from your side? How is that fair?”
Wait for their answer.
And now you can either say,
“I understand (NOT SORRY), we’d love to have your business and this is the price. Let me know how you’d like to proceed.”
Or, if you feel you must give them a win, then something like this:
“I’ll tell you what I will do. Instead of 15% discount, I’ll do 7.5% and that way you can blame your executives for not getting the full discount, and you can still be the hero.
How would you like to proceed?”
Frankly, I don’t like the last one, it makes me feel dirty and manipulative.
Check out this webinar on-demand where we discuss how to reduce discounting with Lisa Marks, Former SVP/General Manger, Global Business Development at American Express and Chloe Steward, Chief Commercial Officer at Broadcast.
And let’s not forget current customers. Check out this blog where we discuss how to move customers off of discounts.
