Don’t Discount and Don’t Blink
Don’t blink when a prospect asks for a better price. It’s cheap to ask. It doesn’t cost them anything to ask. So they ask. It’s ok to say no.
Being asked for a better price is a perfect opportunity to qualify and possibly close the sale.
For example, if you are asked for a better price, make a presumptive close and move the customer to a negotiation. Say, “I am glad you have chosen ABC Company and I am happy to discuss price and all aspects of our terms and conditions to finalize a contract. Do you have time now or should we schedule time at a later date for this negotiation.” If they are not ready, they will quickly back-off and say they aren’t ready to purchase they just wanted a price. Now you can re-qualify and move the buyer forward. “Glad to discuss price with you, but first let’s make sure that “ABC” is your first choice. What issues are outstanding that I can resolve so you will choose “ABC ?” Have them choose “ABC” before discussing price.
Try and avoid price discussions with people who do not have the authority to negotiate the contract. Rough orders of magnitude etc are fine for people who do not have the authority to do the deal. You want to avoid serial negotiation. This is when you negotiate price with one person, only to find that there is now someone else who wants to negotiate, and then it goes to purchasing who wants to negotiate. Get them to decide on your company and then negotiate once with the people who have the authority to do the deal.
I was closing a deal and the buyer said, “you’ll need to do better on the price”. I said, “I sorry, I didn’t realize you couldn’t afford my services. Let’s discsuss what we can remove from the scope of delivery to meet your financial constraints.” The buyer then said, “No I can certainly afford your services, I just want a better price”. I said that my service was a great value and priced appropriately and I was not going to discount the price.” He said, “gee everytime I ask for a price discount I get one. Well ok, I figured I just had to ask, I had nothing to lose.” He then signed the PO.