During this time of year, we reflect on what really matters in life. We step back from the everyday hustle and bustle and focus on the importance of family, friends, and heavily discounted Black Friday deals.
As consumers, we are obsessed with the thrill of Black Friday deals (that now start on Thursday). In fact, googling the term “Black Friday deals” yields 125,000,000 results in less than one second. We have become a culture of cheap.
This culture of cheap mindset also impacts the B2B world. Buyers no longer request discounts, they demand them. This expectation creates a challenge for salespeople. Offering a discount is no longer the exception, it’s the rule. It appears that buyers have too much discounting power. This discounting behavior impacts your bottom-line profitability.
This culture-of-cheap mentality makes salespeople believe they have little to no pricing control. Salespeople tell themselves, “There is nothing I can do. I have to discount because that is what the customer wants.”
This perceived lack of control makes it easier for salespeople to discount. Mentally, salespeople believe the discounting decision is out of their control. Here’s a dose of business reality…You alone cut your price and give a discount. The buyer might demand a discount, but you are the decider. Your competition might discount, but they can’t discount your solution. You alone cut your price. You have the control.
There is one thing buyers need more than a cheap price, reassurance. Buyers demand a discount because they don’t want to overpay. Anytime you are dealing with a scarce resource like money, people are afraid of misusing it. We want to make sure that we are getting the best deal. We have all experienced the anxiety of paying full price today and then seeing it discounted the next day.
Rather than giving the buyer an immediate discount, reassure them that they are getting the best deal for the money. When we deny the buyer’s request for a discount, they feel a sense of relief. The buyer is relieved because they are close to getting the best deal possible. If they are getting the best deal, it means they have spent their resources wisely.
When we give the buyer an immediate discount, they always wonder how much more is left in the deal. They are going to question whether they could’ve gotten more. By not giving in to the buyer’s discount request, you’ll actually make them happier in the long run. To reverse this culture-of-cheap mentality, hold the line on price. Remember, you alone have the power to discount your price.
Paul Reilly is president of Reilly Sales Training, a St. Louis-based, privately owned company that specializes in training sales professionals, sales managers, and service professionals. Call Paul at 636-778-0175 or email Paul@ReillySalesTraining.com.