When customers demand a price reduction, what should sales representatives do? This is a common issue faced by our telemarketing sales representatives. Should they concede or not? If they concede, customers may not believe it and think the product is of poor quality. If they don't, customers may feel unhappy, thinking the salesperson is inflexible and leaves no room for negotiation. Thus, sales representatives are caught in a dilemma: they want to close the deal but fear the customer won't buy. What should they do?
How can this problem be effectively solved? There are four main reasons why customers ask for a price reduction: first, they believe the product's value does not match its price; second, they have previously purchased a similar product at a lower price; third, their economic capacity is not aligned with the product's price; fourth, they think competitors' products are cheaper. These are the reasons behind their request for a discount.
For any product, whether it is expensive or not depends entirely on the customer's perception. Some people spend ten thousand yuan on a suit and say it's not expensive, while others spend a hundred yuan and say it's too expensive. The expensiveness of a product has little to do with the product itself but is related to the customer's self-judgment. If they think it's worth it, it's not expensive; if not, it's expensive. Therefore, excellent salespeople do not rush to bargain with customers. Instead, they ask, "Why do you think it's expensive?"
Although this seems like a simple question, it contains profound wisdom. The purpose of asking is to uncover the customer's values. Listen to their answer and determine which of the four categories they fall into. If they say, "I've never bought it at such a high price before," then it's the second category. If they say, "Others' products are not that expensive," then it's the fourth. If they say, "It's so expensive, how can I afford it?" then it's likely the third. If they can't give a specific reason, it's probably the first. Once the telemarketing sales representative knows the customer's resistance point, they naturally know the answer they need. Because the problem is the answer; as long as the salesperson has enough reasons to show that the product's price matches what the customer expects, they will naturally accept it. So for products with significant price flexibility, the sales representative can ask, "How much do you think is not expensive?" Of course, before asking this, they must first build the product's value. Then they can ask what price the customer can accept and find the point of closing the deal.
What if the product itself cannot be discounted? The sales representative must provide a reasonable explanation. This can be approached from several angles: first, company policy prohibits discounts; second, single items cannot be discounted; third, fairness to all customers prevents discounts; fourth, the product is worth more than the price, so no discount is needed; fifth, add value to meet customer needs without lowering the price. As long as the sales representative communicates well, customers will understand and naturally stop bargaining.
Therefore, an excellent salesperson, when a customer asks for a discount, will say, "Mr./Ms. [Name], I completely understand your feelings. Of course, everyone wants to buy the best product at the lowest price. But rest assured, this is such a good product that we sell N sets every day, and we have never discounted it. If we did, first, the company wouldn't approve, and I'd be fired for selling at a discount; second, it would be unfair to other customers, as this product is sold at a uniform price across the market; third..." and so on. You need to give the customer a way out, save face, make them happy, reassure them, and make them feel they are getting great value. Then they won't bargain.
Conversely, if the sales representative immediately concedes when the customer asks for a discount, the customer will not trust them. Salespeople should always remember: there must be a reason for a discount, such as "because we just opened," "because I just opened the door today," "because you're buying a lot," "because you often patronize my business," "because you're placing the order right now," "because you're referring customers to me," etc. So I can offer you a discount. As long as you find a reason that pleases the customer, they will be happy to buy because they enjoy a privilege others don't have. If you discount without any reason, customers will feel you're making too much profit from them. So remember, when a customer asks for a discount, even if you can reduce the price, ask them to do something in return. Only then is the transaction fair, and the customer feels at ease.
Additionally, even if the product has high profit margins, don't reduce the price too much at once. This will make customers doubt the product quality even more. Although you may want to lower the price, don't appear eager to agree. Only when customers achieve their goal with effort will they feel a sense of accomplishment and be willing to buy. Customers don't want cheap products, but they like to feel they're getting a bargain. So when you do discount, make sure the customer knows the product is inherently expensive, but due to certain reasons, you're selling it cheaper. This way, the customer feels it's very worthwhile.
Value-added services are also the best way to satisfy customers' demands for discounts. When the sales representative cannot meet the customer's needs in one aspect, they need to compensate with value in another. For example, "Although we can't agree to your price, we can offer free delivery or a money-back guarantee if not effective," to give them psychological balance. This way, customers buy happily and use with confidence.
For products that can be discounted, when a customer asks for a discount, you should ask in return, "Are you ready to order now?" or "How many units do you need?" This makes the customer understand that discounts are possible but conditional. If they can't meet the conditions, they won't make unreasonable demands.
These are some communication methods to address price reductions. I hope they are helpful to salespeople. Of course, handle specific situations flexibly.
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