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Oliver SchumacherOliver Schumacher is a sales trainer and speaker. The speech scientist (MA) and business economist (FH) worked for 10 years in B2B field service for the branded goods industry. Today the five-time book author gives tried and tested tips and strategies on the topics of new customer acquisition, offer management and price negotiations. His main clientele are small and medium-sized companies that have their own sales force. More information at www.oliver-schumacher.de/

Discounts vs. High-priced sales: 10 tips for fearful sellers

Bias prevents sales success. If premature discounts are given, this will be detrimental to this Company , But the guilt is not alone with the seller. Everyone has to take responsibility for it. What solutions are there?

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Know and defuse anxiety situation

Salespeople do not always act purposefully for their company. Sometimes they pursue a variant that is more comfortable for them due to their personality structure, established courses of action and intuitive thought patterns.

Since this usually happens unconsciously, sales managers should know the typical anxiety situations and thus the dangers for the sales success and deal with them. Together, solutions can be developed to remedy the situation.

Do your salespeople buckle too quickly at the price?

Sellers have to sell - and be it about the price. Buyers have to shop inexpensively - that too is about the price.

After all, it is their job to shop at the best possible conditions. But the key point is how quickly sellers "distribute" discounts and how often they give too much discounts.

Discounts on sale: the path of least resistance

Asked about his motive, the answer of such a "discounter" is usually: "I would not have got the job otherwise". Other prospective deals often lead to unjustified price concessions. Likewise, the principle of receiving the customer at all costs (and that is to take literally!) Is widespread: "Yes, do we now want the order - or not?"

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Sellers are not always aware of the business consequences of disproportionate discounts. Often, they lack conclusive arguments to explain why they are more expensive relative to the competitor. Also, that they finally want to have the job (or have to, to reach their target) and no further time to invest, is an important reason why sellers give too fast and too high discounts.

Sales alone are not enough

Even if the figures seem to be right at first glance, sales alone are not enough. What matters is what's left behind. Therefore, sellers must have clear strategies in order to enforce the calculated prices.

Sellers need to be proud of their (high) prices. If they are unable to do so, there is a great danger that they will prematurely buckle in the price negotiations, even more so if they depend on the order. Compensation models based purely on sales instead of contribution margin support the "rebate illness".

10 tips: This allows sellers to better enforce their prices

Who gives too much discount (s), reduces the profit and endangers his future chances. If, on the other hand, sellers are willing to pay - and are convinced by themselves, price negotiations can be made much safer. The following ten tips help you to negotiate more confidently:

  1. Find out with the right questions what your counterpart really wants and needs. Bring in possible prices yourself early in the conversation in order to achieve the best possible solution. Most customers have financial limits or fixed prices.
  2. Make it easy for your counterpart to accept your prices. Profitability calculations and patterns help as well as positive formulations: not "that costs x Euro", but "you get it for x Euro".
  3. Many buyers ask for a better price because they know that this often leads to a discount. Your opponent wants to test whether there is still "air" in the prices. If a customer asks for a discount, he is very likely to be interested in your offer.
  4. Always try to refute the discount request at eye level first: "Unfortunately, we can not afford the price anymore. Because the offer is worth it. "Then try to leave the price discussion by asking a final question. Maybe "Is it alright for you when we get the goods at 24. deliver this month? "
  5. If the customer remains stubborn, then check whether you actually receive the order immediately, if you make a discount concession: "Is there anything else besides the price that keeps you from working together?"
  6. The price objection is often just an excuse. In order not to hurt the provider, many customers prefer to say "they are too expensive!" Instead of "I do not believe in your quality!". Such a customer will not buy even with discounts.
  7. Only give discounts when you actually know that nothing else speaks against the cooperation. Instead of granting the maximum rebate, you can ask what price your customer has imagined or start with a smaller discount.
  8. Remember that every penny discount reduces your profit. Give the customer the feeling that it really was a strong performance from him to get a discount. Even if it was only a mini-discount from your point of view.
  9. You can also claim a consideration for a discount. For example, you can ask for a written reference.
  10. If the consideration is right, the price is secondary from the customer's perspective - never forget that! So check together with the customer whether a discount is actually necessary or whether it is better to change the quantity or the order as a whole.

Salespeople can support their front team

  • Make sure all customer-facing staff have sovereign and appreciative answers when customers question prices.
  • Discuss strategies with your employees on how to deal with discounts on equal terms.
  • Check if you can open up new customer groups that are more willing to pay.

If you want to sell successfully, you must first sell the price yourself. Because only if the provider is really one hundred percent behind this, the customer will rarely doubt him.

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2 responses to "discounts vs. high-priced sales: 10 tips for anxious sellers"

  1. Alexander Eggers says:

    As a seller you really shouldn't be afraid!

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