How to Avoid & Eliminate Discounting
Discounting is a habit.
A bad habit.
My nickname back at one of my early sales jobs was "Dr. Discount".
Although it was kinda funny, I wasn't real proud to have my VP of Sales calling me Dr. Discount.
I got that nickname after dropping my price large amounts repeatedly to close a few deals.
I didn't really know what I was doing.
But my prospects did.
They knew that what they were buying had a high margin over its hard dollar costs. I was selling business software, and the costs involved are "soft". They are things like R&D and marketing and sales. They are not "hard" costs like you have with something like a piece of machinery.
So my prospects knew that they could game some sales reps (reps like me back then) to get a deal.
What I was missing was I didn't know how to create and measure the value that I was giving to my potential new customer.
I bought into the fact that I could discount it, so I used that ability to get deals closed sooner rather than later.
The problem is if you always do this, you won't make enough profit on your deals.
So how do you stop this? How do you avoid and eliminate discounting altogether?
Answer: Know the value to your prospect of what you are selling.
And if you are in a competitive deal: Know the value of what your competitor is selling to your prospect.
When you know the value to your prospect of what they are considering purchasing, then you can see the deal from both their perspective and yours.
If you're selling a good product (which I hope you are), then the value you give is more than they will be paying.
And if you know the value of what your competition sells, then you can fairly and accurately compare and justify why you charge more and why they should pay more to get your stuff.
It all comes down to knowing what is driving the sale at all times.
You gotta ask good questions up-front, probe in deep, and get your prospects to tell you what they most want, why they want it, and what priority and value it is to them.
And if your deal goes on over days weeks and months like mine used to in business, then you have to repeatedly ask and reconfirm these questions since sometimes "things change".
So discounts can and should be avoided and eliminated from your selling.
You just need to find out what is driving every deal, and tie your stuff into giving your prospect exactly what he wants. When you have exactly what he wants, you won't have to discount. In fact he'll pay even more to get what he wants from you.
Discounting is a state of mind. You may be there like I was, but you don't have to any longer.
Discover how to find exactly what is driving every deal you go after and use that powerful knowledge to stay in control of your sales and command premium prices with my Persuasive Selling Skills Audio Program. Get your copy now.
Sell with Pride,
Shameless Shamus Brown