Never discount today for the promise of business tomorrow.
Have you done that? I don’t blame you if you don’t want to admit it. I’m embarrassed about the time I let a big-shot car dealer who owned five dealerships talk me into a $3,000 discount on a $10,000 electrical job. He promised we would get all his work at all five dealerships. I know you are thinking, “Rodney, I didn’t know you were that stupid!” Well, it was early in my career, and I guess he could tell I needed an education, so he took me to school. And how much work do you think came my way from any of his dealerships? You are correct if you said zero.
OK, I told that story because I knew you would never do anything so foolish, and if you have, maybe you will feel better now. Lol.
Once I learned that lesson, it saved me much more than $3,000 over the next 20-plus years.
So, how do I avoid discounting?
GIVE SEVERAL OPTIONS
If they resist the price, simply say, “I’m not here to break the bank, feel free to take a cheaper option.”
Repeat this until they buy, and they will. By giving them choices, customers are more willing to buy because they don’t feel forced into anything. Studies also show that, more often than not, when presented with options, customers tend to purchase an option that falls somewhere in the middle pricewise — they probably won’t take the most expensive option, but they won’t take the cheapest one either.
NEVER DISCOUNT UNLESS THEY DISCOUNT
In other words, “Quid pro quo… you give if they give.” Offer to make the purchase more affordable. Suggest that you won’t upgrade the water heater with this job, and eliminating that can bring it closer to their budget — offer to take care of the water heater later on in the year. This way, the customer understands the value in what you’re offering.
CHANGE THE SUBJECT
When pressed on price, it’s time to change the subject. It’s always about price until you make it about something else.
“If they resist your price, you haven’t earned the right to close the sale.”
Have you heard this? Well I don’t see Wal-Mart or Best Buy ever feeling like they have to earn the right to close. They simply use a different method. That method is to have enough choices that price resistance is gone — it doesn’t exist.
The next time you are in a retail store, notice there are always very low prices on something. When the customer sees affordable pricing, they feel in control, and they then choose a higher priced object not because some salesman told them they should, but because they are in control of the decision. Usually, the decision is based on what they bought last time that did not hold up, so this time they have a reason to pay more. But you, as a sales person, would not necessarily know what motivates them, so let them motivate themselves.
Never discount today for the promise of future business is a good practice. But always give them a reason to feel in total control of the sale, so discounts won’t even come up.
Let’s have a great life, starting right now.