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Do You Discount or Do You Negotiate?
The true art of Salesmanship is not to haggle on price, but to sell on quality. Another factor is discounts have no place in professional selling and never will have.
1. Professionals Give Top Service
Would you trust a doctor who discounts to get your business be it for his/her services, or major or minor operations? Of course not, professionals charge competitive rates and don’t give discounts. In place of a rock bottom price a professional gives what his prospect wants above all – top quality service. And you’ll never buy top quality service at a cut price.
2. Professionals Sell Products of Quality
Does Mercedes Benz give discounts? No top end of the market supplier would dream of giving discounts. Their product speaks for itself. The professional seller knows how to sell his product as a Mercedes within his industry. But in today’s climate, many Mercedes products are sold at Volvo prices anyway, and there’s no room for further margin reductions.
3. Professionals Negotiate
Negotiate something In place of a discount throw in something of value. What seems valuable to your prospect may simply represent a few dollars to the seller. I’ve given away a chemical pack valued at around $100 to consolidate the sale for years now. The fact is, it cost me around $40 out of pocket to earn thousands in commission.
4. Professionals Write Down Everything they Negotiate
This eliminates come-backs later. Both parties can clearly see what is on offer and once complete, the negotiation is already written on the purchase order. This is another way of closing, then consolidating the sale.
5. Value Building Greatly Reduces Discounting
If you’ve built value properly in the first place, there should not be the need to discount. If you sell quality, price will not become the issue.
6. Every Negotiation Should Pay Dividends
If you find that there is no other way of securing the sale, then apply the Win/Win concept. This way both parties will need to forfeit something. You may reduce the warranty period for a discount, or re work some of the clauses. On the other hand, you may bargain for referrals. And to me, this is the best method, because it helps recoup losses and increase business at the same time. Besides, the more you negotiate the more referrals you write.
7. Discounts may be Used as a Substitute
There are many sellers who are prepared to pay ‘spotters fees’ for referrals. Your discount can be used in this way too. But a point of caution here, sign them up first with the discount, then don’t deliver the goods unless they’ve made the required appointments on the spot for you. If not, you’re in the drivers seat and can use any form of beverage you feel would be of value. No matter what you do, or what you negotiate, work at creating and obtaining a Win/Win situation each and every time you end a call of this type. And remember – don’t discount – negotiate.