We are reminded of Warren Buffet, the famous billionaire investor’s saying: “Price is what you pay. Value is what you get.” Very apt indeed! He had quoted the statement while referring to stocks, but the statement holds good even today for any commodity. It is a gentle nudge to the customer to emphasise on the value of the product rather than on the price.
Ask your sales team to be very wary of people asking for discounts or you will be stuck with giving a discount. When you are talking about your service or your product what do you do when the question pops up about a discount. Be careful of what you speak, or you may end up reducing your profit margin. It would really be tempting to offer a discount to clinch the deal, but you had better desist from doing so.
There are some people who ask for discounts, not because of their own volition, but because they have been asked to. These people are not very comfortable with the topic and if you firmly deny any discount, they are sure to forget about it. There are others who are very aggressive and blatant in their approach.
Discounts bring down your profits
Most of the seasoned business men and women know and realise that running a business exclusively on discounts is a dangerous proposition. You would be walking a tight wire – not knowing whether to accede to the demand for a discount or stay firm. You are the person-on-the-spot and you will have to take the crucial decision. Remember, that there would be some retailers who would not hesitate to sell at a price lower than yours. If you offer a discount to one customer, you will face resistance from other customers, and you will end up having to reduce your price altogether.
An easier way out would be to have discounts and special offers for a limited period and then return to normalcy – and that way, you are not likely to face any problems.
If you would like to avoid discounts, pay a little attention to the presentation of the price. The price must be expressed clearly and firmly and the price tag should say so. Do not play with figures and be absolutely clear with all the customers.
Quality v/s price
Tell your customer that quality is more important than price and the price that they are paying is for the quality of the product. You could also tell them there are sure to find similar products for a much cheaper rate, but there is a tremendous difference in the quality. If they need quality, they would have to pay the price. Ask them the question – if they want quality or a cheaper price? You can be sure that all the customers would definitely opt for quality.
Discounts are a sore topic between the buyer and the seller – and this has been so since times immemorial. Some of the buyers insist on a discount as a matter of right while others try to secure a discount one way or the other. Ask your sales team to be very wary of people asking for discounts or you will be stuck with giving a discount. When you talk about your service or your product what do you do when the question pops up about a discount. Be careful of what you speak, or you may have to reduce your profit margin.
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