Think before you speak

Written by Kelley Robertson Friday, 05 September 2008 05:58

Imagine this scenario: you’re talking to a customer, and after you present your product, service or solution she asks, “What discount can I get?” or “What can you do about the price?” Think before you speak, otherwise this innocent-sounding question will cost you money right off your bottom line. While it’s tempting to offer a discount, resist the desire to do so. Here’s why:

First, just because someone asks you for a better price, doesn’t mean they expect to get it. Some people ask for a discount because they have been told to do so. They’re often uncomfortable doing this and will seldom press the issue. However, professional buyers and key decision-makers know that many sellers will drop their price at the first sign of resistance, so they ask everyone for a discount – and they can be aggressive in their approach. Plus, experienced negotiators lose respect for people who drop their price too quickly. Standing your ground shows strength, and executives respect this type of behaviour.

Second, when you drop your price too quickly, you teach your customer to repeat that behaviour in future transactions. Remember, everything you do now affects your customer’s behaviour toward you in the future.

When I first started my private practice, I gave a client a discount on a package of services. The next time he contacted me, he demanded that same discount, which put me in a somewhat precarious position – did I give the same discount or risk losing the sale? A business executive once told me that she knew which of her suppliers she could browbeat into giving her a better price, and she always took advantage of their weakness.

So, what is the best way to respond to a request for a better price?

Professional negotiators will tell you to “flinch.” A “flinch” is a visible reaction to a request or demand and goes something like this, “You want a discount!?! Even though we have been working together for four years and you know our services will help you get better results, you still want a discount?” When coupled with the right facial expressions and body language, this technique is extremely effective. However, I have found that most people are extremely uncomfortable using this approach –even I find it difficult to apply on a consistent basis.

Another effective way to respond to a request for a better price is to ask, “What did you have in mind?” or “What were you looking for?” When you ask one of these questions, you get the other person to tell you how much of a discount he or she wants. In many cases, the expectation will be less than you’re prepared to give, which means you’ll increase the size of the sale and save money at the same time – a double win. One word of caution here: an experienced negotiator will say, “Well, I want a better price than this,” which means you need to be prepared to ask the question a couple of times.

This also applies to email correspondence. Many people will ask their salesperson for a discount via e-mail, which makes it impossible to use some of the standard negotiating techniques. Before you respond by offering a better price, take the time to properly craft your e-mail response. Here is what you can say: “We might be able to do something for you. What did you have in mind?” The key is to give the indication that you have flexibility without committing to something you might regret later.

This sounds like an easy technique to use, but it’s not. You have to train yourself to listen for your customer’s question, and be prepared to respond with your own. I hate to admit it, but I’ve fallen for a discount request because I wasn’t expecting it. In one situation, an existing client asked me for a package price on some bundled services. Instead of asking what price he had in mind, I automatically offered a small discount. I kicked myself afterwards because I should’ve known better.

It’s essential to listen carefully to what your prospect says, and to think before you speak. It’s also critical to practice your responses until they become second-nature. That way, you can answer quickly when a client asks the dreaded question, “What can you do about the price?”

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