You're facing a client demanding instant discounts. How do you secure their long-term partnership?

It is always important to understand what the client needs. If they are just hunting for a discount, they're running just behind the deal and not the value you have to offer. This won't help you get the clients for the long term in general. To get good long-term clients, give discounts only to retain the long-term partnership or if direly needed. Not just because they said it, and you want to simply close the deal.

Understanding Needs Let's be real, when someone's screaming "discount," they're probably just hungry for a deal. But deep down, it's about more than just saving a few bucks. Maybe their budget's tighter than a pair of skinny jeans, or perhaps they need to feel like they're getting bang for their buck. Like a wise Jedi, tap into their needs and show some empathy. "Hey, I get it, everyone loves a good bargain! Tell me, what's the real story here? What are you trying to achieve?" Once you've got their backstory, you can start crafting a solution that makes everyone happy.

Here it's essential to understand more about the prospective client. Why are they requesting a discount? In organisations they often have a budget with constraints and if being led by a senior who has to approve the agreement.. who has asked them to ask for a discount . In face this scenario can actually help to win business and long term client when handled with sensitivity and emotional intelligence. Ask why : ask how you can help, understand what they really need and if you are able to be able to agree some kind of time related incentive ( looking at the bigger picture of the business and LTCV long term client value)

When a client comes at you with discount demands faster than a kid in a candy store, don't panic! This isn't just about slashing prices. Here's how to flip the script: Channel your inner detective Don't just hear "discount" - hear "tell me more." Ask questions like you're interviewing for the next big podcast. What's really driving this discount demand? Is it a tight budget, or did they just not see the value yet? Empathy is your superpower Show them you're not just another salesperson, but their partner in crime. " Value is the name of the game Remember, you're not selling a product - you're selling solutions to their problems. Highlight the ROI like you're painting the Sistine of value propositions!

Your first question should be; "I don't want to see you waste money regardless of the price. Let's first see if its even right for you." You then proceed to ask them questions about why they're wanting to buy. Your objective is get the customer to see the reason they need it and allow that to overcome their price concern. Remember it's not what you may think the need is, it's what the customer believes is their need, get them to verbalize as this is the only way for them to fully comprehend it.

I'd like to share an example from the automobile industry: To maintain a long-term association with customers, companies often offer a free Annual Maintenance Charge (AMC). This creates a win-win situation for both the company and the clients. Customers receive free service, while they only pay for replaced parts or engine oils.

Not Just a Sale, It's an Epic Saga! Alright, now that you understand their needs, it's time to unleash the full force of your value proposition. Think of it like pitching an epic movie: instead of focusing on the ticket price, you're selling them an immersive experience. "Sure, you can get a discount ticket to the next generic blockbuster, or you can join us for an unforgettable cinematic journey filled with stunning visuals, heart-pounding action, and a story that will stay with you long after the credits roll!" Show them that your product or service is more than just a one-time purchase – it's an investment in their future.

Walk them through, step by step, of your process for their purchase. Explain every step in detail and make sure they understand it. Allow them to ask questions. Answer their questions with honesty and integrity. Be true to you and be true to them.

Aportar Valor. El valor va en función de la necesidad que estás cubriendo. En el momento en el que te sientas con un cliente, la realidad es que ya deberíais saber los dos que tú puedes cubrir su necesidad o a lo mejor en plural. Genera confianza. La confianza es la parte esencial de toda relación. Sin confianza no hay relaciones. Sin relaciones no hay transacciones. Genera confianza y solventa las necesidades del cliente.

There's often a difference between what you think the value is and what they see the value as. Therefore it's always important to provide and connect the value in a way that they're going to be able to see and understand it. Connect the services you're providing with the things they value, the things they desire or are needing. Connect them with what they're ultimately looking for (result etc). Use the language they'll connect with, paint the picture of how it benefits them using examples that will connect and make sense to them. Essentially you need to make it all mean something other than "just a service" to them.

Never give concessions without getting something in return, that's the one negotiation advice everyone should repeat like mantra. Good negotiators are reading people like books, and if they feel weakness, they're like sharks. If you give in to a discount "for the sake of a future relationship" or another empty argument like that, you will open the doors for abuse of that relationship. Give discounts for long-term commitment, higher quantities, case studies and information sharing, but never "just because".

When clients negotiate pricing, it shows they're genuinely interested in our services. Given the many competitors in the market, if they found a similar service at a lower price, they would have chosen it instead of negotiating with us. This indicates they're inclined to choose us but are seeking the best possible deal. To handle this, we should initially set our prices with some room for negotiation since most clients will ask for a discount. Once we reach our limit, we can inform them that this is our best offer and let them decide. 99% Chance is - they will get back to us.

Clients wanting to save money are often just wanting time to test the waters. Try providing a tiered pricing system that locks the client in as you provide value. If you can go 30-60 days at a 30% discount, then 20% then 10% - you'll quickly see the client invest in your value as much as you invest in their success. You can also incorporate discounts with promised commissions based on reaching set targets to facilitate a sense of shared incentive.

Depending on what you uncovered as the reason for the discount request will depend on what course of action you can take negotiation wise. Don't be afraid to get creative with the solution, if it's because they didn't see the value then re-position the value. If it's due to budget or financial constraints then you can look at various solutions, it could be reducing something in the package, it could be adjusting something so that it's discounted initially but paid back in the long term. Sometimes people want a discount so they feel like they "win" as such. Which is fine, but remember to do this in a way that makes them feel this way but doesn't leave you conceding. You ideally want to be getting something in return for the discount.

When clients hesitate to pay the full amount and request a further discount, we can employ a few strategies to accommodate their needs while maintaining our margins. First, we can ask about their budget and recommend a package that best suits their requirements within that budget. This demonstrates our willingness to work with them to find a suitable solution. Additionally, we can offer installment payment options, allowing them to pay half the amount initially and the remaining half later. This flexibility can make our services more accessible without immediately resorting to price cuts.

Working within the client's budget is always the first step in sales, in my opinion. Without the budget, we don't have the roadmap for the sale. Working within the client's budget shows the client how devoted we are to their scenario. There are always options available and as sales professionals it is our job to be creative and find solutions for our clients.

Flexibility: Adapt or Face Extinction Sometimes, a direct discount might not be in the cards. That's when you need to channel your inner Yoda and become one with the Force of flexibility. "Okay, so a discount might not be the best fit for you right now. But what if we looked at a different package or a lower-tier option that still meets your needs? Think of it like choosing between a fully-loaded Millennium Falcon and a nimble X-wing fighter – both are awesome, but it all depends on your mission!"

Keep in contact with your clients. Birthdays, anniversaries, etc. You should setup an action plan in your CRM to keep in contact with your clients a minimum of 4 times a year. These contact points are easy to do: - Holidays - Birthdays - Sales anniversary of their transaction - Thank you notes for their trust in you Be creative.

Building Relationships: Stronger Than the Force Itself Listen, this isn't just about making a sale – it's about forging a bond stronger than the Force itself. Get to know your client, understand their business, and show them that you're on their side. Become their trusted advisor, their go-to guru for all things awesome. When you have that kind of relationship, price becomes less of a barrier and more of a detail.

The Follow-Up: The Saga Continues Just like a great movie franchise, the story doesn't end when the sale is made. The follow-up is your chance to ensure a happy ending. Check in with your client, make sure they're satisfied, and ask for feedback. If they're happy, they'll spread the word, and you'll become a sales legend. And if they're not? Well, you've got a chance to turn things around and make them a fan for life.

Big mistake to agree to instant discounts in my opinion... I would only offer future or retro-active discounts based on increased revenue!

I recommend assessing the true profitability of the customer before deciding to do any of the above. If it isn’t profitable, then you have other decisions to make. Do you walk? Is it worth having them because of market conditions, keeping out a competitor…? If they aren’t profitable and other conditions are met, keep them, if not, make the choice to walk away and spend your time more wisely on building profitable relationships elsewhere.

Assess the financial conditions of the customer business. Then, if so needed, link discounts to your "must have list" within that customer. Second, model the discounting with the customer to understand how much is being passed into the ultimate consumer versus how much will be additive to the customer's margin. Be cautious in approach as once you start the behavior, it will become common place with a retailer.

I totally agree as being a reliable source of supply with excellent quality should be key when offering a solution. If a discount is being demanded and product is approved, I would tie it to volume and lock it into a contract if feasible.