Competitively offer discounts.

I run into this scenario from time to time. Prospect is in the market and looks at 3 or 4 options. I know the options they mention and exactly how we compare. I usually can see this coming from a mile away. They will decide on price. I can feel it in my bones. So I tell clients from time to time, if it comes down to us and so and so and it's price, let us see if we can compete. People rarely ask for a discount. they just go with the cheaper option without even trying. why? why would they not try to get more for their money? weeeee willlllllll diiiisssccccccounnnnnnt 
what gives? 
🧠 Advice
🏅 Competition
☁️ Software Tech
11
Matt
Politicker
2
Sales Executive
I’ve had this exact conversation with my colleagues over the past few years and in my opinion, I think there are a few things that could be happening in these cases: 1. Prospect is thinking, “if you could discount further, why didn’t you do that up front?”. They don’t want to have to ask for a better price after you already knew they were shopping your competitors as well. 2. Prospects aren’t comfortable negotiating price. As a career salesperson, it’s easy to forget that other people aren’t as comfortable with the confrontation/awkwardness that can come from negotiating price. 3. The ease of being able to buy things online has caused a shift in buyer mentality- they want an easy buying experience and having to haggle price doesn’t fit into that. This is just my experience based on selling middle market SAAS solutions over the past 7 years and could definitely vary based on what you’re selling.
Finesy
Valued Contributor
1
Account Representative III
I think this is really good insight. So the question is, how do I mitigate this problem without showing my cards? “If you are looking at so and so we might be able to price match if it boils down to us two” Thoughts ?
Matt
Politicker
0
Sales Executive
A lot of the time it comes down to using your EQ and understanding the buyer’s personality, but you have a few options. Either come in with your best price up front and hope it’s enough to win the business, or give them a competitive quote and sell on the business challenge your solution solves that your competitors doesn’t. And don’t forget to let the buyer know how excited you would be to work with them and how much it would mean to bring them on as a client. Sincerity and reminding them that you value their business can go a long way when it comes down to you vs a competitor.
Matt
Politicker
0
Sales Executive
The other scenario is to be the last one to present pricing for obvious reasons. If you aren’t last, try getting another meeting on the calendar to connect with them after they’ve met with all competitors to give yourself one final opportunity to earn their business.
CuriousFox
WR Officer
1
🦊
They are sold on the total value of the product.
Blackwargreymon
Politicker
1
MDR
They are sold on the total value of the product.
Clashingsoulsspell
Politicker
1
ISR
Companies keep specializing in procurement, what they're missing is time with the sales team to show the value of the product. It sucks.
SADNES5
Politicker
0
down voters are marketing spies
Companies keep specializing in procurement, what they're missing is time with the sales team to show the value of the product. It sucks. They're a new gatekeeper, basically trying to get the best price from X number of quotes. When they're on the table they're looking at bottom line, assuming their quotes were best price.

I found a way to combat this, give them a great price (not giving away the farm, but keep dialing down the price until you start winning). Say it's for onboarding new clients, you're never going to get a deal like this, get the systems tied up, staff experience etc. Then it's easier to retain and grow that business. 
LordOfWar
Tycoon
0
Blow it up
Build rapport, as much as you can get. Get them emotionally invested in you and your solution while continuing to mention how "customizable" your system is to fit their needs and budget. Be HONEST and tell them you know you may not be the cheapest in town but the features, support or customization far outstrips any comparable systems. Hell, even nod that you have certain discounts available but only for interested buyers and subject to management approval or long-term partnerships.

I always anchor price-sensitive customers ahead of time by 25% or more above what I think it will be. This makes them happy when they see the real number and allows me to put the focus on the real benefits of working with us. AKA "Buy once, cry once. Buy cheap, buy often"

You also need to get ahead of procurement and start looking for prospects before they are looking for you. The idea here is to spec yourself into their search by helping them with their requirements and procurement plan. If you offer to guide them in the search you can identify specific features they need that, surprise surprise, only your firm solves. Fight commoditization.

If the buyer's decision is only based on price then I'd say you are either chasing the wrong prospect or you didn't do your job of educating them on why your product is worth what it costs, what pain points it solves, how it helps them grow and do what they do better or more efficiently. 

Unless you are the cheapest you'll lose the price game every time. If you work for the cheapest company then you should know they don't even need you since the low price should sell the product itself to buyers that only care about price.
Altego_
Member
0
Account Executive
“Price aside who would you pick” then dig deeper into why if they say you
MR.StretchISR
Politicker
0
ISR
I’ve had this exact conversation with my colleagues over the past few years and in my opinion, I think there are a few things that could be happening in these cases: 1. Prospect is thinking, “if you could discount further, why didn’t you do that up front?”. They don’t want to have to ask for a better price after you already knew they were shopping your competitors as well. 2. Prospects aren’t comfortable negotiating price. As a career salesperson, it’s easy to forget that other people aren’t as comfortable with the confrontation/awkwardness that can come from negotiating price.
Mr.Floaty
Politicker
0
BDR
It happens sometimes. But not a lot tbh
Cyberjarre
Politicker
0
BDR
From a voicemail only? No. From the email I send immediately after leaving a voicemail? Yes. That's how you get em.
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