When someone asks you for a discount, what do you do?

Do you just give them it?

If you do, then your prospect is going to think one of several things:

•   You seem desperate for the sale.   
•   I wonder how far you will lower your price and maybe I should have asked for an even bigger discount.   
•   The price you originally offered was not the real price. Are you trying to trick me? Can I really trust you?   
•   You don't set a very high value on your own services and products if you are prepared to discount so quickly.   
•   You agree your price is too high. This is a problem.   
•   Next time I come to buy anything from you, I'll ask for a discount again - an even bigger one.

Giving in quickly to a discount sends the complete wrong message and has a significant impact on whether your prospect trusts you or not. And it can cost you the sale or get you a sale you regret later.

So what must you do instead of just giving a discount?

Instead of just giving a discount when asked for one, turn the whole conversation around and go for a higher priced sale. I know this is counter intuitive but it is not that hard to do and it works.

Next time you're asked for a discount, what if you could increase your sale by 10%? What if you could in fact double the price of your sale? What would be the revenue value to you?
It's easier to do than you think; if you know how.   That’s what our upcoming POWER Negotiation Pack is about.   For now sample some POWER – click here

In this "new" age of austerity where all the news is about cut-backs, then it is inevitable that your customers will start to use the situation to demand lower prices from you. Your challenge is to ensure that you get the order at a price that is profitable for you. To do that your customer has got to see value in choosing you rather than your competitor. Yes, you will likely have to sharpen your pencil to get your price looking attractive but there are others things you can do apart from straight and dangerous discounting.

Here is a selection taken from my SpotLearn.com Sales and Marketing Academy.

1. Are you buying better from your own suppliers -savings which you may be able to use to lower your prices?

2. Price for value:  Take a lesson from street sellers who understand better than anyone the principle of value-based pricing. Umbrella prices go up the moment it starts raining. It has nothing to do with the cost of the goods, and everything to do with the value the customer places on the product.

3. Focus on profit, not margin: Many businesses equate “high margin” with pricing success.  Maybe so, but a high margin can also point to opportunities to serve more customers by using discount tactics as well. Profit is your goal, not margin.

There's more tips in The Achiever and price and profit learning videos in the SpotLearn Academies