When a buyer demands a significant discount, you need to carefully consider your response. I know many salespeople who will accept a less-than-favorable deal just to get in the door. However, it is essential to recognize that your actions today will influence a person's behavior in subsequent sales interactions. If you give buyers a 15-percent discount today just to get their business, then they will expect that and more the next time.
I suspect that you may have some challenges with predatory pricing from some of your competitors. It is critical to remember two things:
- You cannot control your competition. Regardless of what you sell and to whom you sell it, there will always be someone who can sell the same or similar product or service for less money. You can't compete with everyone.
- If you play the price war you will likely get hurt. Unless you are already a low-priced supplier, you probably can't afford to substantially drop your prices. Otherwise, your profit margins will take a beating.
Salespeople who keep their pipelines full tend to have less of an issue with aggressive demands simply because they know there will always be someone else to sell to. However, a slightly filled pipeline places more pressure on you to close every sale, which means you are more susceptible to price demands.
Sign up for The Lead and get a new tip in your inbox every day! More tips:
Kelley Robertson helps sales professionals master their sales conversations so they can win more business at higher profits. Get a free copy of "100 Ways to Increase Your Sales" and "Sales Blunders That Cost You Money" at http://www.Fearless-Selling.ca.
