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4 Compromises to Offer When Clients Ask For a Discount

4 Compromises to Offer When Clients Ask For a Discount

It’s something all salespeople dread. Working hard on an offer, sending it to a potential client, and hearing those five terrible words: “Can I get a discount?” At this point, many salespeople decide to simply accommodate the request to secure the sale. However, this is a mistake; offering a discount on your very first contract with a customer is problematic.

First, it dilutes the value of any future sales, as those buyers know that all they need to do to get a discount is ask. This is a key reason why loyal customers spend 67% more than brand-new customers throughout repeat purchases. It also impacts your customer’s perception of your brand and your product or service.

A high-quality offering is always well worth its original price. Accommodating discount requests also creates additional work for your sales team; if a customer demands a discount each time, they’ll contact their sales rep directly to complete returning purchases instead of placing their order through self-service platforms.

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Given these points, it’s no surprise that discounts do not always have a strong positive impact on businesses. Fortunately, there are plenty of ways you can move the conversation away from discounts by focusing on the real problem or offering something else. Here are four compromises you can suggest in lieu of offering your customers a discount:

1. Revisit the deliverables timeline

When a customer asks for a discount, they’re looking for one of two things: a bit more value than you offered or a way to fit your proposal into the budget. A discount isn’t required to satisfy either of these requirements. In fact, all you need to do is take a look at the delivery timeline.

If your customer is looking for more value, you can consider finding a way to deliver the finished product quicker. If it’s a simple order, expedited shipping could do the trick. If it’s a project or custom order, you could try moving it up a bit.

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On the other hand, if your customer is truly just stressed about the cost of the engagement, ask for their flexibility on the deliverables timeline before you adjust pricing. If they’re willing to wait, you could work on their project when it’s convenient, making it easier for your team to fulfill your end of the contract.

2. Change your proposal’s scope

Not every client has the same needs. If they’re looking for a discount, it could simply mean you’re offering too much for them. Take a look at the scope of your proposal and see if there’s anything on your quote that isn’t a necessity for the client. By removing extraneous options and tightening the scope, you can lower the price and keep the client happy.

3. Offer friendly payment terms

Some customers will ask for a discount simply because they’re going to have trouble paying for everything upfront. For large sales, you can’t let this be an issue. Almost 40% of all invoices in the U.S. are paid late anyway, so you might as well try to find a deposit method that works for both companies. Offer to let them pay in monthly increments over a year or two, or as services are rendered. They’ll have less crunch on their cashflow and you’ll receive fair market price, making everybody happy.

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4. Provide additional, low-margin services

If a customer presses hard for a discount, you need to try and offer them something extra instead. If they’re looking for a $200 discount, for example, try to find something that’s worth $200 you can offer them instead.

This could be a personalized training session, expanded support, or an extended service contract. Doing something like this shows that you’re willing to go above and beyond, and that your company has plenty to offer. Your relationship will be much stronger than if you simply agree to shave $200 off the quote.

Saying ‘no’ to a customer asking for a discount is frightening, but if you have another suggestion lined up, you’ll be able to close the deal more often than not. Make sure to focus on what the customer truly needs and the real problem at hand, and you’ll have no problem training your customers to forget all about discounts.

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Featured photo credit: http://getrefe.tumblr.com/ via 66.media.tumblr.com

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Last Updated on March 29, 2021

5 Types of Horrible Bosses and How to Beat Them All

5 Types of Horrible Bosses and How to Beat Them All

When I left university I took a job immediately, I had been lucky as I had spent a year earning almost nothing as an intern so I was offered a role. On my first day I found that I had not been allocated a desk, there was no one to greet me so I was left for some hours ignored. I happened to snipe about this to another employee at the coffee machine two things happened. The first was that the person I had complained to was my new manager’s wife, and the second was, in his own words, ‘that he would come down on me like a ton of bricks if I crossed him…’

What a great start to a job! I had moved to a new city, and had been at work for less than a morning when I had my first run in with the first style of bad manager. I didn’t stay long enough to find out what Mr Agressive would do next. Bad managers are a major issue. Research from Approved Index shows that more than four in ten employees (42%) state that they have previously quit a job because of a bad manager.

The Dream Type Of Manager

My best manager was a total opposite. A man who had been the head of the UK tax system and was working his retirement running a company I was a very junior and green employee for. I made a stupid mistake, one which cost a lot of time and money and I felt I was going to be sacked without doubt.

I was nervous, beating myself up about what I had done, what would happen. At the end of the day I was called to his office, he had made me wait and I had spent that day talking to other employees, trying to understand where I had gone wrong. It had been a simple mistyped line of code which sent a massive print job out totally wrong. I learn how I should have done it and I fretted.

My boss asked me to step into his office, he asked me to sit down. “Do you know what you did?” I babbled, yes, I had been stupid, I had not double-checked or asked for advice when I was doing something I had not really understood. It was totally my fault. He paused. “Will you do that again?” Of course I told him I would not, I would always double check, ask for help and not try to be so clever when I was not!

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“Okay…”

That was it. I paused and asked, should I clear my desk. He smiled. “You have learnt a valuable lesson, I can be sure that you will never make a mistake like that again. Why would I want to get rid of an employee who knows that?”

I stayed with that company for many years, the way I was treated was a real object lesson in good management. Sadly, far too many poor managers exist out there.

The Complete Catalogue of Bad Managers

The Bully

My first boss fitted into the classic bully class. This is so often the ‘old school’ management by power style. I encountered this style again in the retail sector where one manager felt the only way to get the best from staff was to bawl and yell.

However, like so many bullies you will often find that this can be someone who either knows no better or is under stress and they are themselves running scared of the situation they have found themselves in.

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The Invisible Boss

This can either present itself as management from afar (usually the golf course or ‘important meetings) or just a boss who is too busy being important to deal with their staff.

It can feel refreshing as you will often have almost total freedom with your manager taking little or no interest in your activities, however you will soon find that you also lack the support that a good manager will provide. Without direction you may feel you are doing well just to find that you are not delivering against expectations you were not told about and suddenly it is all your fault.

The Micro Manager

The frustration of having a manager who feels the need to be involved in everything you do. The polar opposite to the Invisible Boss you will feel that there is no trust in your work as they will want to meddle in everything you do.

Dealing with the micro-manager can be difficult. Often their management style comes from their own insecurity. You can try confronting them, tell them that you can do your job however in many cases this will not succeed and can in fact make things worse.

The Over Promoted Boss

The Over promoted boss categorises someone who has no idea. They have found themselves in a management position through service, family or some corporate mystery. They are people who are not only highly unqualified to be managers they will generally be unable to do even your job.

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You can find yourself persistently frustrated by the situation you are in, however it can seem impossible to get out without handing over your resignation.

The Credit Stealer

The credit stealer is the boss who will never publically acknowledge the work you do. You will put in the extra hours working on a project and you know that, in the ‘big meeting’ it will be your credit stealing boss who will take all of the credit!

Again it is demoralising, you see all of the credit for your labour being stolen and this can often lead to good employees looking for new careers.

3 Essential Ways to Work (Cope) with Bad Managers

Whatever type of bad boss you have there are certain things that you can do to ensure that you get the recognition and protection you require to not only remain sane but to also build your career.

1. Keep evidence

Whether it is incidents with the bully or examples of projects you have completed with the credit stealer you will always be well served to keep notes and supporting evidence for projects you are working on.

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Buy your own notebook and ensure that you are always making notes, it becomes a habit and a very useful one as you have a constant reminder as well as somewhere to explore ideas.

Importantly, if you do have to go to HR or stand-up for yourself you will have clear records! Also, don’t always trust that corporate servers or emails will always be available or not tampered with. Keep your own content.

2. Hold regular meetings

Ensure that you make time for regular meetings with your boss. This is especially useful for the over-promoted or the invisible boss to allow you to ‘manage upwards’. Take charge where you can to set your objectives and use these meetings to set clear objectives and document the status of your work.

3. Stand your ground, but be ready to jump…

Remember that you don’t have to put up with poor management. If you have issues you should face them with your boss, maybe they do not know that they are coming across in a bad way.

However, be ready to recognise if the situation is not going to change. If that is the case, keep your head down and get working on polishing your CV! If it isn’t working, there will be something better out there for you!

Good luck!

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