How to deal with customers who want price discounts?

Ateneo Professor on Entrepreneurship

Angono, Rizal  PHL   |  July 16, 2013

From Sales Hunter

How do you deal with customers who always demand discounts.  This seems to be way for most customers to get maximum benefits for minimal money:   the get your pound of flesh.  And the young sales person may be intimidated.

Its a combination of strategies that will enable you deal with this problem.

First all, you must be well versed with the MVP of your product:  what is your product's job for the customer?  It is about product value and not price.

A low price product is a commodity which does not do anything exceptional to the customer.

Rather than give a discount, give more value or free goods to customer, but not cash discount as this will distort your pricing and it will never end.

Here are some strategies on how to deal with "barato" (bargainers/cheapskates)

l. Focus on the product benefits;  say you will talk about the price later on

2.  Continue with the presentation;  do not be stopped yet by price concern;

3.  Walk away;  suggest other products/alternatives that are cheaper and suits the customer's budget;  You will be surprised that sometimes the customer will call you and pay the full price.

4.  Present price points and where he fits.

5.  Restate the benefits and  the price