revenuehunter
Product Pricing - What are your best answers for customers who would start with 90% discounted price while negotiating?
13
I don’t talk to people who are that cheap. I start at list price every time. If someone wants a 90% discount I’ll normally tell them to go pick one of our competitors that I know doesn’t work so that they will come back in a year when it and I can price gouge the fuck out of them.
Big Meech Energy
When someone pulls a ridiculous price out of their ass I usually pause and go "wow...okay, why that number?" Then I hear them out and see where this shit is coming from. Sometimes it's them being cheap, sometimes it's them not understanding a realistic price for our product at all, sometimes a competitor has lowballed the fuck out of them. If it's them being cheap I kick them to the curb, for the other two I clearly have some tapes in their head to try and unwind.
This is the proper approach, but nothing pisses me off more than a horseshit low anchor like this, they are never based in reality.
I want XYZ features for some absurdly low price. I just look at them and ask now that thats off the table are they ready to start actually negotiating.
I want XYZ features for some absurdly low price. I just look at them and ask now that thats off the table are they ready to start actually negotiating.
Yup. I usually say "that's well below market rate and I'll be honest - it'll never happen but I am willing to work with you to find something that suits your needs and is in line with your budget. That said, if your budget is (ridiculous number,) and you NEED xyz we're not going to be the right fit for you."
Ya this will usually weed them out really quick, I like dropping some shitty competitor here too. "If thats youre budget, X might be a better fit, even though they lack everything you need"
Same lol. I'm super blunt with them. "You might be able to get that price with x but I'll be honest, here are the shitty things you'll encounter."
I'd tell em to get a quality product you pay the quality price. I ain't Dollar Tree.
What do you sell? What is the ACV?
ACV is close to about $240K. I sell Data and Work Insights!
Got it--and who asks for these discounts? The buyer or their procurement team? If the former, they can GFY, if the latter, then we can't be too surprised here.
I have a friend whose in procurement. I tell him every time I see him how much he sucks and that he is only in the line because he couldn't cut it in sales.
He usually just nods in agreement
He usually just nods in agreement
You have prospects starting negotiations asking for 90% off of your proposed price? If that the case I'm politely telling them to "Fuck off"
Sounds like an extreme anchor. Laugh at them and respond with a 175% price point, then say but I admire the size of your balls so I'll cut it to 125%
I love this!
My initial reaction from reading this is they are not qualified if 90% discount ask is their starting point.
To answer your question directly without knowing more detail, my answer would be “No, that’s not going to happen.”
"I don't think we're the right solution for you. So-and-so is cheaper."
I'd start by finding out why that's the number they need it to be.
Then work backwards and build the value in the product I'm selling and help the client justify the cost they will be spending with us.
Then work backwards and build the value in the product I'm selling and help the client justify the cost they will be spending with us.
I would begin by going back to my discovery to understand the pain and impact, and try to bring that portion back up. Make sure I didn’t miss-understand anything. Then seek to understand why that number specifically. If that is still the number then level set and walk away as we are too far apart.
Anyone who kicks off the price negotiation with a lowball offer, I immediately say something like, So, budget is clearly an issue….This does one of 2 things, they cop to actually being budget challenged or they get a little defensive about it and show more of their hand because you politely called them cheap. In my business we often have a good, better and best solution, so I hit them hard with 2 of the 3 options that’s closest to what they actually have to spend.
Walk away.
Related posts
Members only
21 comment