You have two options: hold firm or go ahead and give the discount. Sometimes you don’t have the option, if your company has a rigid pricing model.
If you do have the option, it comes down to what you know about your client from qualifying, and how well you’ve shown value.
There are two pieces of information you need to know from qualifying:
- Need: How strong is the client’s pain point? Are they going to buy your product (or a product like yours) no matter what? Would they be willing to wait to get a better price? Or do they have the urgency to buy right now?
- Budget / price: What is the client willing to spend? What prices have they seen from other sellers?
If you’ve identified a strong need from the client, i.e., you’re relatively sure the client is going to buy a product like yours no matter what, AND you’ve given them a price that’s within their budget and below all the prices they’ve seen from other sellers, then you can be extremely confident in holding firm when they ask for a discount.
Now, when it comes to the need, even if you’re certain the client is going to buy a product in the market, you still need to be sure the client is going to be buying YOUR product.
This comes down to showing value. If you haven’t done this well enough to be 99% sure that the client is going to buy with you, then you shouldn’t have given your client a specific price in the first place.
Maybe you have given a range or an estimate at some point in the conversation, but you shouldn’t have asked for the sale with a set-in-stone, sign-on-the-dotted-line price. (Side note: only ask for the sale once you’re as sure as possible that the client is going to buy).
Another possibility, is that the client has told you a budget or competitor price in qualifying that is lower than the price that you’re asking for.
In this case, you have two options:
- Sell on specific value that explains why your product is worth the premium.
- Give the discount.
Even once you’ve decided to give the discount, if you’ve built enough rapport with the client, I would still recommend giving the high price at first (to anchor the client’s mentality higher).
And then handle one or two objections, before finally pausing and exhaling (and maybe telling the client you have to ask your manager) and then finally giving them the discount.
This makes it feel like the discount is a big deal and not everyone gets it. It also creates a sense of urgency for your client to buy right away (while the discount is available).
But remember, before even thinking about giving a discount, make sure you qualify (for need and price) and show value.