Here's how you can navigate a client's request for a discount or special offer.
Navigating a client's request for a discount or special offer is a common scenario in sales. Understandably, your clients want the best value for their money, and as a sales professional, you need to balance accommodating their needs while maintaining profitability and value perception. It's crucial to approach these situations with a strategy that ensures both parties feel satisfied with the outcome. This article will guide you through the process of handling discount requests effectively, ensuring you maintain a strong relationship with your client while also protecting your business's interests.
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Elizabeth PellerinHeadhunter in Manufacturing for Accountants🔎Whether hiring or seeking, your search is our priority. Finding the right…
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Rohit AKDirector of Sales - India @AVOCOR
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Vusi VokwanaFounder and Director at Kasi Catalyst | Speaker l Underserved Market Penetration Strategist l Community Engagement…
When a client asks for a discount, your first step is to listen actively. Understand the reasons behind their request by asking open-ended questions. This shows that you value their business and are willing to consider their perspective. By listening, you might uncover specific concerns or needs that can be addressed in ways other than a price reduction. It also builds trust and rapport, which are essential for a long-term business relationship.
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In my experience, it’s imperative to meet a prospective client in person. If it’s not possible, then definitely a video meet. It can’t be understated the value in touring the facility, discussing the specific department’s needs, details of the position, its “sizzle,” just gathering as much information as possible. This allows the recruiter the opportunity to then describe in detail how their recruiting process works. The recruiter can thoroughly outline all of the many steps in the recruiting process. Most clients usually agree to the value of the fee! I find it is when a company doesn’t understand all of the work involved, they try to lower the fee and/or terms of the guarantee.
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Its widely believed that discount is what sails the deal through, it only makes the sales rep inflate the quote and have a buffer for negotiation, so is this a true discount?? What a buyer needs to understand is , has he/she got a good deal, even after a good deal if he/she is expecting a further discount then its pure greed and there's no end to it. And what a seller needs to understand is whether they are offering the best deal to a customer, if yes, then its the prerogative of the sales rep to educate the buyer of the value proposition of the product and bring their sales skills to the fore and not keep discounting endlessly. Discounts do win deals, yes, but it should not be at the cost of value of the product..
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Learning the reasons behind the request can be vital. Is it budget issues? Are they speaking to providers that have a lower price? Or are they simply looking to find the best value. Either way, listening can help identify the best approach. You want to highlight how your product provides the most value by listening to their pain points.
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Clients always want discount in fee a realtor charges. We as company have no discount policy because we always make sure to meet the client first and give them the idea of what all work will be there before-during and after the transaction. We also share our knowledge which gives them confidence to work with us and not ask for discount.
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Complete agreement to this , also customers should also understand there is nothing FREE one can offer , just don’t get excited listening FREE , believe in right price for right product, evaluate 360
After listening, assess the value your product or service provides to the client. Remind them of the benefits and unique selling points that justify the cost. Sometimes, clients may not fully appreciate the value they're receiving, and a gentle reminder can help realign their perception with the price. This is also a good time to review any additional support or services you offer that add value beyond the basic product or service.
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In my experience it’s important to emphasize the long-term benefits and cost savings that your product or service can deliver. Sometimes, clients focus on the immediate cost without considering the future value or savings that could outweigh the initial expense. Offering discounts without understanding value can lead to a perception of lower quality or a commoditized brand, affecting long-term brand equity. High quality often justifies a higher price.
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Sometimes it's a ploy by customers. Do not get rattled and commit something which you cannot fulfill. Here one needs to understand the strategic importance of the customer in the long run. In the near future the customer can give you good volumes or it can be the volumes are not so good but being a partner to the customer can yield mileage as a brand and act as a confidence boosting factor to other customers who are being pitched. So understand, analyse,assess and act on it.
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Navigating a client's request for a discount or special offer requires a strategic approach centered on assessing value. Begin by understanding the client's needs and the value your product or service brings to them. Highlight key benefits, unique features, and past successes to demonstrate worth. Instead of immediately conceding to a discount, offer added value through additional services, extended support, or bundled packages. This approach reinforces the product’s value, potentially satisfying the client without eroding your margins. Remember, the focus should always be on value, not just price.
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Unpopular opinion 🚨 Asses your customer first! You should always determine if a client you have is the RIGHT client for your solution and company. Questions to ask and stats they uncover: 1️⃣ Will this customer need my solution passed the first sale and continue to renew/expand? (CLV: Customer Lifetime Value) 2️⃣ Does this customer need my solution to solve a problem so painful the price doesn’t matter and how long will that problem last without a solution? (Lifetime of the Problem) 3️⃣ If my competitors solution were offered at even $1 cheaper, would this customer buy it? (My competitive advantage) Answering these questions should have you validate whether this is “a” customer or if this is “YOUR” customer. #solversneversell
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Destacar o valor agregado: Em vez de reduzir o preço, você pode destacar os benefícios e o valor agregado que o produto ou serviço oferece ao cliente. Mostre como ele pode se beneficiar e obter um retorno positivo do investimento, mesmo sem um desconto direto.
If a discount is not feasible, consider offering alternatives that do not compromise your pricing integrity. This could be in the form of value-added services, bundled packages, or extended warranties. Alternatives provide the client with a sense of receiving more for their money without lowering the price. It's a win-win situation where they feel they're getting a special deal, and you maintain your product's value.
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Ofrecer alternativas nos permite dar opciones a nuestros clientes para que pueda obtener un producto adaptado a su presupuesto personal. Al final, el objetivo debe ser lograr la satisfacción del cliente.
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Understanding a company's unique circumstances can help you to still deliver excellent services while maintaining affordability. For example, I recently completed a search for a new client. The agreement stated the fee was due in full. However, as we progressed, we developed a strong relationship with the company's President, who requested a monthly installment plan. Although this was not part of the initial agreement, we recognized the importance of supporting our client without straining their balance sheet. This fostered such goodwill that we secured an additional placement under the same installment plan. Being flexible helped to build a strong relationship and enhanced our reputation as a reliable, client-focused recruitment partner.
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Uma frase muito usada no marketing ou vendas é: Entender para atender. Não discordo da frase, porém uso a ATENDER PARA ENTENDER. Atender é dar atenção, dessa forma Você entenderá as necessidades de alguém, inclusive o Cliente. Assim, suas ações serão voltadas a achar alternativas que busque atender com excelência seu Cliente.
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Offer options or alternatives to clients but make sure that your pricing will keep the integrity. Its a win win situation for both of you.
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By offering alternative solutions or even competitor solutions you can earn a big goodwill from the customer for your product. It doesn't even have to match your own request but look around and see what else they might can improve in their business by using your own experiences.
Transparency is key when discussing pricing with clients. If you cannot offer a discount, explain why in clear terms. Perhaps it's due to company policy, cost constraints, or the high quality of your offering. Whatever the reason, clients appreciate honesty and are more likely to accept your stance if they understand the rationale behind it.
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I’ve always found transparency to provide clarity to the price. It helps set the correct expectations as you move through the negotiation process.
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Todd Caponi explains the transparency aspect perfectly in his book. The core idea is to share with your prospect how your pricing works and the "levers" that can affect it. This way you invite them to think about what needs to change in order for them to get a discount
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Transparência, integridade, confiabilidade, entre outros bons adjetivos, estão em alta em todo tempo. São as bases de negócios. Porém, as palavras podem estar em placas, paredes ou em qualquer outro lugar de sua empresa, mas se não estiver no coração e no sentimento de seu Cliente, de nada valerá. Colocar-se no lugar do outro e entregar seu melhor, é amostra de amor próprio, pois é apenas dessa forma que Você demonstra amor ao próximo.
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No one is going to buy from a person that doesn’t provide transparency. By doing this you’re putting a middle line through the trust section of the conversation and the client will notice this and question your integrity. You want to gain the trust of the client and that’s by providing full transparency from the start to the finish so the client can understand that you are being genuine and providing them value. This goes a long way in obtaining business.
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Remember this: Being transparent about pricing is crucial for building a bridge to recruit loyal customers. Customers expect to feel valued, and they will appreciate your honesty when you share information with them.
If you decide to negotiate, do so smartly. Determine in advance what you're willing to offer and what you're not. Never give a discount without getting something in return, whether it's a larger order, a longer contract, or referrals. This ensures that any concessions you make are balanced by benefits to your business.
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I think that a good tactic to use when a buyer is asking for a discount is to let them know how much that requires out of you to get the approval to give one. This will make the client value your efforts and be more inclined to offer their effort in return. That can be in the form of a referral or a testimonial that will either open up the door for new business or at the bare minimum improve your reputation as an organization.
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Desde la presentación de oferta inicial debo saber hasta donde es el precio mínimo a ofertar. Después de todo no somos obras de beneficencia para regalar el producto o servicios por lo que como buen vendedor debemos proteger los márgenes de la compañía y hacer negociaciones inteligentes desde que estamos presentando la oferta inicial al cliente.
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La negociación es una parte fundamental del proceso de venta por lo que no debemos evitarla al contrario tenemos que ir bien preparados, la mejor política es buscar beneficios para ambas partes, cuando ambos lados ganan se dan las condiciones propicias para generar relaciones comerciales a largo plazo
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You never give a customer a discount unless they are giving you a reason to justify it. If they have another quote, make sure that you see it. Usually, the cheaper quote is cheaper for a reason, a cheaper product or a different scope of work. If it is just about presenting a cheaper price, at minimum give the customer a time limit to sign the contract. Sign today and save me a second trip out to see you and you can save "X" amount off the price. If your price drops, you need to take something away from the customer, either take time "price is only good for a few days" or some part of the project scope "warranty or use of a cheaper material". If you don't do this, you will forever be discounting. Your price is your price for a reason.
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Smart negotiation is crucial for achieving win-win outcomes in sales. Approach each negotiation with a clear understanding of your objectives and the client's needs. Be prepared to listen actively and identify common ground. Flexibility and creativity in finding solutions can turn potential conflicts into opportunities for collaboration. Maintain a balance between assertiveness and empathy, ensuring that both parties feel valued and satisfied with the agreement. By negotiating smartly, you build stronger relationships, enhance your reputation, and secure deals that benefit both your clients and your organization.
Finally, it's important to set boundaries. Know when to stand firm on your pricing and when to walk away if necessary. Not all business is good business, and it's better to maintain your product's value and integrity than to agree to unfavorable terms that could set a precedent for future negotiations.
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If potential customers are approaching you, it’s ok to stand on your brand reputation and pricing. Offering a discount can be an easy thing to do, but you need to know your profit margins and be mindful of not working for free. Make sure you have a WHY for giving a discount. Are they a community partner? Will the discount help with your overall visibility? Are they willing to post and help you grow? Sometimes a discount can be looked at as a marketing expense.
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Além de estabelecer limites claros, ressalte os diferenciais exclusivos, como soluções logísticas personalizadas ou tecnologias inovadoras, para evidenciar o valor agregado. Ao propor termos contratuais, priorize benefícios mútuos, como cláusulas de desempenho que assegurem qualidade para ambas as partes. Essa abordagem promove relações comerciais sólidas e equilibradas, beneficiando tanto o seu negócio quanto o do cliente.
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In my experience it’s good to stand firm. Know your worth. Don’t open Pandora’s box. Many times, a prospect will just want to test the water , without much conviction. You need to be the one with the unwavering belief system.
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You should always stand and be firm. boundaries are boundaries you should put a line for the business and clients. Know the worth.
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In my experience this structured approach ensures that the client's needs are addressed while protecting the value and integrity of your product or service. Setting boundaries is crucial for maintaining a sustainable business model and ensuring that any concessions made are mutually beneficial.
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If you are providing a service, especially in a niche market, have a differentiated pricing strategy for different clients. For instance, we operate in the community engagement space in underserved markets in South Africa - we cannot charge those communities for the services we provide because there is limited disposable income but the work has to be done. We collect the data, capture the insights, package and market it to global markets who are accustomed to paying for data insights. Occasionally, we are forced to haggle with local corporates who have historically extracted value from the bottom of the pyramid market unethically so we sometimes have to walk away with our data and market expertise. Don't be afraid to walk away.
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El descuento sólo es solicitado si no generaste valor en todo tu proceso de ventas y si el cliente percibe al vendedor inseguro, ansioso. Esta sensación se espeja en el comprador y, como excusa y reacción defensiva, instintivamente solicitan descuento. (para evadir la compra o para "ganarte" algo) Ante cualquier cliente: 1. Sonríe 2. Escucha con los oídos y con los ojos. 3. Pregunta para entender mejor su necesidad y su disposición de compra.
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It's a very uncomfortable conversation for a young CRE broker. You're so excited to finally have a deal to work, and then the client hits you with the discount conversation halfway through. There's basically nothing to do in that moment, but remember to get it agreed and in writing before doing the next deal. If your services are truly valuable, you should hold your prices. If they're not, work harder and get better.
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Empathize with the client, but understand pricing might not be the only concern. What is not being said? Assuming you're able to agree on the investment, what else would be standing in the way of a partnership? Now isn't the time to pitch or oversell. You need to be sure the client actually believes your solution solves their problem. What questions have you failed to ask? What concerns have you not addressed? It's best to understand where the request for a discount is coming from in the first place. You might have missed something.
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When a prospect asks for a discount, this means the sales rep didn’t create a visual of what the cost is if they don’t buy and how this solution to their problem can have a profound impact on them. The biggest mistake sales reps make is talking too much. If the rep listens, the prospect will tell them exactly how to sell them and what price point they’re willing to pay to solve their problem.
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