Is This The Best You Can Do?

How Not to Negotiate Price

“Is this the best you can do?” Sound familiar? If your last several customers didn’t ask this question, the odds are pretty good that next one probably will. How you respond to this question may determine whether or not you make the sale— and I’m not talking about lowering the price.

When a customer asks you for a discount, the surefire quickest way to lose the sale is to give them even the slightest impression that you are considering their request.

It is critically important how you initially respond to an appeal for a discount. Hesitate, even for a nanosecond, or trip over a word or two, and your customer may well read your momentary indecisiveness as a sign that holding out for a better price may be a worthwhile cause. Offer up any reason for them to doubt your conviction and you may end up helplessly watching your otherwise “done deal” move into a “wait and see” holding pattern.

There are a few really good reasons why customers are inclined to ask for discounts.

The “avoid being taken” factor

To begin with, customers want to avoid being “taken” by a salesperson (taken: a slightly kinder gentler way of saying “ripped off”). Probing around and asking about discounts helps to confirm that they are actually getting the best price available. Remember, their life’s experience with other salespeople has taught them that negotiating often pays off.

The “avoid the embarrassment” factor

Customers also want to avoid the embarrassment of appearing less intelligent than someone else. One of their imagined fears (often grounded in the reality of an actual past experience) is that they will enter into an agreement, paying the full list price for some product or service, only to return home and later find out that their neighbor or brother-in-law purchased exactly the same thing for less.

The “less than professional” factor

There is another possible reason that may trigger a customer to ask you for a discount and that is— you! If you come across as the stereotypical salesperson, a little bit pushy, talking too much, plodding along through a somewhat uninspiring presentation— if you project anything less than a completely professional image— then you can bet that the customer will indeed be looking for a discount!

In the normal course of professional selling, it is certainly not unusual for customers to ask for discounts. But here’s what drives me nuts as a sales trainer. Even though customers ask for discounts on a somewhat regular basis— suggesting that learning how to effectively handle the question would be an economic “no-brainer” of sorts— unbelievably, the average salesperson often balks before spitting out a less than intelligent response. Or, they just sit there staring at the customer for a few seconds with a sort of empty-headed “dear caught in the headlights” look before saying anything.

In order to quickly dispel any notion that holding out for a discount could be worthwhile, a sales professional must always anticipate that their customer may ask for one and be fully prepared to respond appropriately and without delay.

Let’s have a look at a useful formula for responding to a discount request so that the next time you’re asked “Is this the best you can do?” you’ll know exactly what to do.

First, apply empathy: I can really appreciate the fact that you’re asking for the best possible price. If I were contemplating this investment, I would certainly ask the same exact question.

Next, make a value statement: Fortunately, we’re proud of the quality products and services we offer at XYZ Company and truly feel that our prices represent tremendous value in return for what we are providing.

Address any possible apprehension: You can feel comfortable in knowing that nobody else will be able to negotiate a lower price than the one that you are considering— that’s just not how we do business.

Suggest abstract savings: And, considering what you may have to pay for the same products and services in the future, the greatest savings are already built into today’s prices.

Finally, close decisively: I can assure you that the price you are considering today is the absolute best available and that you can feel confident in your decision.

Generally speaking, immediately handling the request for a discount along these lines, both empathetically and yet firmly will most likely put the issue comfortably to rest in the mind of the customer. It is unlikely that they will see any point in attempting to hold out for a better price.

Discounting lowers more than just price, it also devalues your firm’s credibility in the marketplace. It suggests that the products and services you are selling were not worth what you were asking in the first place.

Lowering the price to close a sale may seem like a better alternative than to lose the sale altogether, at least in the short run. However, the long term effect of discounting is troublesome. Unless you’re striving to establish the reputation as the “wheeler and dealer” in your marketplace, discounting adds up to a really poor business practice. It is mortgaging the future to save the present. Eventually, the negative effects will catch up with you.

At the end of the day, if you’re asking a fair price in return for quality products and services, and you stick to the general price list— raising value instead of lowering price— you will enjoy market credibility, build a strong commercial identity, and ensure the sustained loyalty of the customers you serve.