Stop offering discounts, start qualifying customers

Yesterday, I accompanied a sales consultant in a client meeting, a sales pitc. The customer asked for the price of a particular product. I was shocked how the sales consultant handled it. She answered, its AED 650 before discount. She offered discount without even client asking for it! Very unprofessional, I felt.

When I thought about it later, I was able to find the disadvantages of throwing discounts:


* The product doesn’t worth the price.
* We are keeping a high margin.
* Keep bargaining and you’ll get a better deal .
* Am I qualified to sell to you (instead of “are you qualified to buy from me”)?
* Our products are overpriced.

My message to sales people is” stop throwing discounts; At least wait for customer to ask for it. Better yet, don’t get into pricing at all”.

But what if your prospect is a bargain hunter?

In this case employ the strategies by Scottie Claiborne

1- Say “Sorry we don’t offer discounts “

Especially when you don’t like to deal with the customer or if you see customer has no other choice than doing business with you.

Explain to the customer that you simply don't offer discounts. You are selling your time more than anything else, and you have a limited supply. Many clients feel they ought to ask for a discount, just in case. When told no, most will still retain your services.

2- Say "I can't offer a discount but I can offer you something else"

Take a hint from the cosmetic companies -- they don't get into pricing battles amongst themselves. They fight it out with extravagant gifts with purchase. For a $20 purchase, you get a free gift worth $50! Who wouldn't buy?

So what can you offer? Well it really depends of your sort of business. In our case (office interiors and furniture):

- Free delivery

- installation

- an extended warrantee

- better service

3- "but you competitor (company ABC) is AED 300 less!”

First of all do not bad mouth your competition when answering this objection. Some ways to answer this comment is:

- Well, Company ABC will probably do a fine job for you, if your budget is limited.

- Our service has a proven record; feel free to contact our clients for a referral.

- We are confident our products or services are well worth the prices.

Well, if they really wanted to buy from company ABC, they would have already done it! They want to hire YOU, not them.