In today’s ever-changing economy, your customers may have more budget concerns. You may be asked to discount your price. What should you do? Think before you respond. Giving discounts can put you on a “slippery slope” and give your customers the expectation that you will always discount.
Here are some tips I frequently share with my coaching clients to help you deal with this “sticky situation.”
1. Look for ways to stay within your customer’s budget without giving a discount. For example, sell a smaller amount of the same promotional product, or suggest a less expensive item.
2. Evaluate the value of the customer. Are they repeat buyers? Do they pay on time? Do they have the ability to give you larger orders and referrals? Do you like working with them? Are you helping them in a tight situation, or is this their new expectation?
3. Be aware that some people are trained to always ask for the lowest price, but may not expect it. You may be in a more powerful position than you realize.
4. If you do decide to discount your price, ask for something in return such as advance payment on the order, a larger quantity order, or a contract for continuous promotional products purchases.
5. Understand how much it costs you to process a promotional products order. Without this information it’s hard to make a wise decision. Be aware of all your business expenses. Some orders are worth walking away from.
6. Provide value beyond the item you’re selling such as free marketing and distribution tips. This enables your customer to see you as a valuable resource instead of a commodity seller, which puts you in the position to make a higher profit.
7. Build long term relationships. Customers that know you, like you and trust you are less likely to be price concerned. Go out of your way to demonstrate caring for your customers and the favor is likely to be returned.
The bottom line: Evaluate each situation individually. Understand that some orders may not be worth your time and effort, and be willing to walk away.
What have you done when asked to discount? I would enjoy hearing your opinion.
One more thing… If you’re looking for more ideas to keep your business thriving, without discounting your prices, check out my website www.promobizcoach.com where you can download a free Promo Biz Success Kit with my complimentary special report: “10 Big Mistakes Promotional Professionals Make and How to Avoid Them and Double Your Sales,” plus hundreds in supplier savings coupons.
