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How to respond to discount requests

How to Respond to Discount Requests: 7 Effective Responses

Last Updated on February 23, 2021

How to respond to discount requests

No matter what product or service you sell, you will likely come across customers asking for discounts for various reasons.

As a sales professional, your goal is to close these deals in a way that satisfies the customer, while working within your company’s pricing constraints.

Some organizations are very happy to entertain the discount request. In some cases, on their own timeline (ie. once or twice a year sale, regular discounts and promotions, etc.). In other cases, organizations discount as needed to close a specific deal, or based on the unique terms and size of the deal at a specific price range.

And of course, some companies refuse to offer discounts of any kind, preferring to set a price-tag that prospects understand to be firm and equal for all.

Regardless, sales professionals should be prepared for price reduction requests along the sales process. And they should have a response ready that will help the negotiation end where everyone is content with the outcome.

Here are 7 effective responses when prospects ask for a discount on prices.

1. Explain how you offer more value than other solutions

Oftentimes prospects ask for a discount because they think that they can get a better value exchange somewhere else. Unless you’re literally talking about the exact same products or services, chances are there’s actually a lot that separates your product or service from someone else’s, specially when it comes to solving pain points.

This is your opportunity to set the record straight and showcase true value of your products.

Your product may be of higher quality. You may offer functionality others don’t offer. Or your training is superior. Or your guarantee is stronger. You fulfill expectations faster. Your platform has a superior user experience.

Your best weapon to avoid discounting, is knowing your competitive environment and being able to show prospects how much more value you offer them.

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2. Add more value than they were getting

In line with number 1 (or in addition, perhaps) you can also deny the discount request but instead increase the value of the deal. Sweeten the pot, so to speak for the prospect.

Think about ways by which you can throw in that makes the pricing more attractive. Perhaps you have an add-on item that you can include for free. Or share an extended warranty or support/training package. Perhaps you can maintain your price, but offer a free trial period to prove the value, or a longer term to the agreement.

All of these negotiations and conversation allows you to preserve your price point, but make a deal more compelling and likely to close with no compromise on pricing.

3. Ask the client why the price is an issue

You don’t want to dilute the value of your product or service by offering a discount for no reason.

Asking the client why the price is preventing them from proceeding is a great way to uncover information that will move the sales process forward.

Whether that means being able to add something of value that the customer needs, or to learn about a competitor brand you might be competing with, or uncovering the budget costs they’re working with, it’s a reasonable question that can help lead to a meeting of the minds when in conversation with the buyer.

It might also suggest that you’ll never see eye-to-eye on price, and that your time would be better spent with another client.

4. Agree, but change the terms

Depending on the product you sell, you could turn a request for a discount into an opportunity to get more business, or build brand loyalty. For example you might:

  1. Lengthen the contract – I can do that, but you need to commit to a year.
  2. Increase the order size – Sure, but the minimum order has to be…
  3. Remove something like fees – I can honor that if you pick it up, or install yourself, or…
  4. Change the scope of the order – I can do that price if you also explore product/service Y from me

5. Ask what they feel would be an appropriate discount

If you are prepared to offer a discount, it helps to know what level of discount they’re looking for.

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If their discount request is reasonable, this might be one of the fastest ways to close a deal because you can simply agree to the request from the buyer. If their request is unreasonable, you can be honest that there’s too far of a gap and let them go (which will save you time, or perhaps help them come around). And if it’s somewhere in the middle, you can continue the negotiations to figure out the best way to come together.

6. Tell them you don’t offer discounts, with a good reason why

If your company does not allow price reductions, then naturally you’ve got the rights reserved to say that. But be prepared with a good business reason why.

Simply telling your prospect “no, I can’t” isn’t going to win you many clients. But if you can explain why that’s your company’s policy in a way that makes sense, you’ve given your prospect a compelling reason to give up their request for price reduction.

A response indicating that your company does a great deal of research to make sure the pricing is competitive will go a long way during the negotiation conversation. Customers who turn down deals because there is no discount often come back because of the strength of your overall offering.

7. Offer a discount, but only if they accept by…

Naturally, if you’re comfortable giving discounts, give them to the buyer. But be smart about it. You don’t want to find yourself in the situation where you agree, but your prospect continues to drag their feet.

If you find out the price your customer wants to pay, then ask them if they’re ready to move forward if you honor it. Or, offer a discount, but only if they can commit to signing the contract agreement by today, tomorrow, or whatever date makes sense.

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This is a great example, where discounts can be an effective way to get deals signed, sealed, and delivered.

Wrapping up what to say when there’s a discount request from prospects

Customers are always interested in getting something for less money. Being in sales for a career, it is up to you to what to say when found in such a situation. Naturally, your range of options vary based on your product, service, or business policy. But if you’re looking for a response to a customer’s request to reduce price, here are 7 reasonable and effective ones that give you a great shot at moving your deal forward.

  • Explain how you’re offering more value than what the prospect will get elsewhere
  • Offer more value without increasing price
  • Ask the customer why the price is a stumbling block
  • Agree, so long as the prospect meet these other terms
  • Ask what kind of a discount in price they’re looking for
  • Tell the client – NO, but with a good reason why
  • Tell the client – YES, as long as they’re prepared to commit their business to you

How do you respond to discount requests at your company?