If
you are finding that your salespeople are resorting too often to discounting
services in order to close a deal, you need to find out why. Something needs to
change…you can’t consistently have your margins cut into this way.
The
easy answer is to blame it on the sales team members. But, say consultative selling training
experts, the cause of rampant discounting is often not the team but the overall
system.
Here
are two possible reasons for an over-reliance on discounts:
- Lack of effective understanding, conviction and communication around value. Be sure your salespeople know what makes your solutions more valuable than the alternatives. Ensure they have the tools they need to sell value rather than price. To negotiate from a position of power, sellers need to know how to sell solutions that work and to engender the necessary trust that they have the buyers’ best interests at heart.
- Corporate pricing based on margin or cost numbers rather than market value. Discounts may be the only way sellers can negotiate if prices are unrealistic and not equated with the value that the services bring from the customer’s perspective. Remember, it is not what you think it is worth. It is what your customers believe it is worth.
