Learning sales techniques is a constant in the life of every professional in the area, whether manager or salesperson. After all, you need to hit goals every month.
Sales is a thankless activity, but it is an art, so you always need to develop new skills, in addition to already having a solid foundation of fundamentals.
The order that no seller likes
Could you give me a discount?
Ready. That’s the phrase no salesperson wants to hear during a negotiation. And it’s also the time when the vast majority make mistakes.
Whether because they don’t know what to do or even get stuck in the face of this request, the professional in the area ends up losing many accounts by not dealing well with this situation.
Even so, the most common practice that exists is such a safety margin: the 10% more that every seller inserts in the first proposal, already waiting for the discount request.
So, when he arrives, he just has to look reluctant, promise that he will negotiate and return with a discount already provided by the seller.
You don’t have to say no to the customer. However, everyone does it.
It’s why we hear so many discount requests, including. The lead knows the price is valued and asks for the discount just to adjust it in several cases.
However, there is a scenario where the lead is not sure and the salesperson does not have the same flexibility.
And when my product/service has plans with closed values?
In complex sales, it was rare to see companies with defined plans and exposed on their websites, but this is slowly changing.
Increasingly, companies present all purchase details to potential customers, reducing the need to contact a salesperson and following the trend to educate leads.
It’s a mere reflection of the data you’ve read in several places: more than half of the purchase process, today, is done without any contact with a company representative.
That is, leads look for information on their own, mainly through the internet. And what do you do, then, when the customer comes to your site?
The three situations in which a lead asks for a discount
Before thinking about what to do, you need to understand why your lead is asking for a discount.
After all, sales are rapport. You need to find the right way to communicate with the person on the other side, otherwise your arguments will have no real relevance.
And what are the top three reasons a lead asks for a discount?
The lead doesn’t see value
Your lead doesn’t see all the value you can deliver and asks for a compulsory discount, because he’s even used to getting 5% or 10% in other situations.
In this case, you depend on your sales techniques, because we are dealing with really qualified leads.
We’ve already talked about qualification by profile, but it’s worth remembering that the next two examples are leads that aren’t able to receive a proposal, but the leads in this first example are.
The leads that fit here are fit, they have a budget, they have a problem that your product solves, but you still haven’t been able to fully convince them.
The lead has no fit
The second case is the worst.
Leads that don’t fit with your product will likely ask for more customization. Whether it’s new features in your product or more dedication to your consultancy, for example.
You will sell cheaper to a customer who will only bring you headaches, such as frequent demands or demands that go outside the scope of your product, without the proper reward for both sides.
After all, if he’s not part of your ideal customer profile, what value are you generating for him? If you can’t solve his pain, why would he buy my solution?
If he’s stubborn and wants to buy anyway, he’ll get the discount he asked for, but he’ll probably turn into a churn soon.
The lead is not ready
Your lead is not yet at the right stage to acquire your solution, either due to lack of budget or timing.
You may be forcing someone with a fit, but without the ability to afford the expense or investment of time required for your solution to generate more value than what you invested in hiring.
Giving this customer a discount can mean a churn, or even a default. Will he have a budget for all installments of his contract? Think about it.
In this case, we are going to stick here only to the first situation, in which the lead does not see value, because for the others, the solution is to wait for the lead to become more mature to acquire your product.
Why not give a discount?
When you start your relationship with a discount order, your lead is creating a negative dynamic.
If a seller agrees to offer the discount without any conditions, they are giving the go ahead so that the lead can continue to place new orders.
That’s why you should be concerned about maintaining a steady posture. This is not to say that you should never discount, just don’t be submissive.
Remember: no one is doing you a favor by buying your product. If you believe in what you deliver, you know you’re going to generate more results than you’re charging.
How to sell without discount? 6 important techniques
If a salesperson isn’t able to generate rapport, build credibility and convey trust to a lead, it’s not the words he utters that will make the difference, okay?
Techniques 1: Don’t discuss price, discuss value
If you already start the conversation with your lead by talking about how much he’s going to pay, there’s something wrong. Whenever you hear a request for a discount, the best tactic is to review the value of the product or service.
The lead must understand that he can save 10% of that amount, but you will not deliver 10% less results. So why does he need the discount?
If the end result pays for itself, things are simple. So, just say:
Sorry, but before we talk about a discount, I would like to review the expected results after using our product.
Show value! Use cases from other customers as social proof and present projections of expected results. The more visual the value delivery is, the easier it is for the lead to understand and not need the discount.
Technique 2: Postpone price negotiation
Simply ask the lead to resolve this later. How to do this?
I believe we can follow an interesting path. You pay one month of the full amount, and if you still think you need the discount, I promise I’ll get you something interesting.
In general, when your solution has value, the customer will be convinced in the surest way: the experience with your product.
Seeing the result in practice, most customers do not ask for a discount again and end up paying without complaining, because they have seen our work and trust the results that will appear.
This technique works well with software, especially the SaaS model, but it can be applied to services as well.
Techniques 3: Negative implications and need for a solution
In addition to discussing the value delivered, demonstrate what your lead loses, use numbers to prove how much he is losing if you don’t hire him.
Define the current scenario for leads and show that they lose more, or fail to earn, than they will invest in your product, demonstrating the negative implications of not having your solution.
Know your leads well and the problems of each one of them, add as much value as possible to the product. It’s important that the lead trusts you and sees you as an authority on the subject.
Show that you know what the problem is, what the consequences are, and how to go about it.
Techniques 4: Get leverage
Do not waive the discount without any conditions. A technique often used in retail is to claim that you get a 5% to 10% discount if the payment is made in cash.
The funny thing is that the real value of the product is increased by this percentage precisely because each transaction via card is charged a fee similar to the discount you receive.
For your case, it is possible to do the same, if you accept cards as a payment option. Another good option here is to pay in advance.
In general, the customer who pays upfront is the most committed to generating results with their solution, which helps with onboarding and the speed at which results appear.
This way, it is possible to increase the predictability of your business and you have the possibility to invest the money received and multiply it over the months.
Another way to get leverage is to make the lead invest more time. The more we invest our time to understand and apply something, the less likely we are to waste it all.
So, if you have a trial version of your software or can make a simple delivery of your service that generates value, make this experience available.
In the end, the lead’s feeling is that its solution is needed to keep the results showing. And the time invested counts for more than the discount.
Technique 5: Surrender to the market and set a price with a safety margin
As well as sellers who have flexibility in the value of proposals, your company can decide to close the values of plans already embedding the safety margin.
In this way, it ends up warning all sellers that a certain discount is always possible.
But beware of this practice and any discounts provided for leads. You may be creating a negative distinction if the customer finds that you pay more than someone else.
This is a breach of trust that can affect your churn.
Technique 6: Provide a Unique Sales Proposition
The Unique Selling Proposition, or USP, is a powerful tactic to ensure an irresistible offer to leads.
Unique Selling Proposition is offering customers something that your competitors simply do not or are unable to offer.
Tangible USPs are hard to copy, which makes them unique. Some points can help you define your USP:
- Does your product or service have a unique benefit, does it solve a problem that no one else does?
- Your product or service has a unique guarantee, do you believe in delivery?
- Is it being sold to a single market where other products don’t work?
Finally: you must not justify yourself
You should be concerned about communicating in the best way with the lead, but you shouldn’t be overly justifying yourself.
In some cases, saying that you do not have the autonomy to give discounts is more appropriate. If the value of the solution is clear, the lead will decide whether to pay or not, and sales techniques can help you drive that response.
Just pay attention to those buyers who create an auction, talking to several competitors and always looking for the best financial proposal.
If you get into that kind of situation, you’ll erode your markup and run a big risk of not getting the customer.
Your focus should be on delivering the best experience and the best results as Capital Smart City do.