Hey everyone, Tanner here. One question I often get asked is about the strategic use of pricing discounts in sales. Should you offer a discount for fast action? Is it effective? I want to share my approach to this and explain why timing and context are key in offering discounts.
“Hey everyone, Tanner here. One question I often get asked is about the strategic use of pricing discounts in sales. Should you offer a discount for fast action? Is it effective? I want to share my approach to this and explain why timing and context are key in offering discounts. “
Understanding When to Offer Pricing Discounts
The common mistake I see is offering discounts too early in the sales process. Instead, discounts should come at the end, as a strategic tool to help close the deal, not as a starting point. It’s about understanding the client’s needs and financial situation, not just slashing prices to make a sale.
A Real-Life Example
Let’s say my program costs $10,000, which is its real value. During a sales call, a client expresses that they can’t afford this amount. This is where the conversation gets strategic. I’d first confirm that price is the only barrier. Then, I’d propose to customize a financial solution that fits their needs, but only if they’re ready to commit today.
Customizing Financial Solutions
If the client is willing to move forward, I ask about their cash on hand. Based on their response, I decide whether I’m willing to accept that amount or propose a payment plan. The key here is to offer a discount that feels genuine and helpful, not just as a sales tactic.
The CEO’s Call
As a CEO, it’s your call to decide on the discount limits. It’s important to find a balance. You shouldn’t undervalue your program to a point where it loses its worth, nor should you be so rigid that you miss out on helping someone who genuinely benefits from your offer.
Pricing Discounts: Sales is About Simplification and Empathy
Sales isn’t as complicated as many make it out to be. It’s about putting yourself in the client’s shoes and thinking about how you would want to be helped in their situation. This approach leads to better outcomes and more genuine sales interactions.
Pricing Discounts: Final Thoughts
Remember, offering a discount is about creating a win-win situation. It’s about being fair and unbiased, helping the client genuinely, and also ensuring your business is profitable. So next time you’re in a sales call, think strategically about discounts. It’s not just about closing the sale; it’s about building a relationship.
That’s it for now. Try this approach, and I’m sure you’ll see not just an increase in sales, but also in customer satisfaction. See you next time!