Even experienced negotiators encounter this situation all the time. But they’ve got tricks to keep their prices high AND close the sale. Here’s four that I use ALL the time.
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Train Customers Not to Expect a Discount
If you give them a discount this time, you’re teaching them to ask for a discount next time they buy. Conversely, if you hold firm now, they are much less likely to even ask for a discount next time. Do you need to retrain your existing clientele? Next time they bring it up, say nicely but firmly: “I’m sorry. I’m not offering discounts any more. I just can’t afford to do it.”
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Bring the Conversation Back to Benefits
When asked for a discount, politely and firmly decline, and resist the temptation to make apologies for the price! Instead, reiterate the benefits they’ll be getting for their money. (To become more persuasive, I recommend a refresher on Features vs. Benefts.)
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Never Reduce Price Without Reducing Your Offering
If you cave and give a discount, you are implicitly telling the customer that there’s extra profit margin in your prices that they can squeeze out of you. This motivates them to push even harder in the long run. Instead, when you sense that you are out of someone’s budget, find an alternative that would fit their budget. Remove some elements of your service, or downgrade to a more basic product, and offer them this alternative.
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Be OK with Walking Away
If you feel desperate for the sale, you will likely act desperate–despite your better judgment. Of course, we all want more business! But remember that if you keep your prices higher, you can walk away from some business and still make more money! So it’s actually smart to sometimes let people go.
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Let me know what other strategies you’ve used to keep your prices high by posting a comment below!