HOW TO DEFEND AGAINST PRICE PRESSURE FROM CUSTOMERS AND COMPETITORS?

Here are the key reasons why salespeople give discounts:

1. An easy way out to close the sale

They don’t need to defend their price, and the customers are more likely to buy from them.

2. Pressure to hit targets

The moment they’re under the stress and pressure of needing to hit their targets, they start becoming desperate.

What are they likely to do then?

Throw the price, offer discounts, so that they can get the sales.

If you’re a sales leader, and you’re pressured to hit targets too, you may very well fall into the same trap.

In turn, you could be creating an environment where your sales team is spoiled and always expects to give discounts.

So how do you change a salesperson’s discount mindset to a 𝘷𝘢𝘭𝘶𝘦 𝘴𝘦𝘭𝘭𝘪𝘯𝘨 𝘮𝘪𝘯𝘥𝘴𝘦𝘵?

1. Stop giving them discounts

As a sales leader, you have to draw the line and maintain the price integrity of your offering by not allowing them to give discounts in the first place.

2. Train them with the right skillsets

You should empower them with the skills and knowledge to defend against price objections and justify the price.

One of the techniques is to sell the value by highlighting your differentiation.

This sets your offering apart from the competitors and your salespeople will be able to justify the price.

3. Strategise

Different sales scenarios require different strategies for the customer to buy.

Certain customers may need you to 𝘥𝘪𝘴𝘤𝘰𝘶𝘯𝘵, 𝘥𝘦𝘧𝘦𝘯𝘥 𝘵𝘩𝘦 𝘷𝘢𝘭𝘶𝘦, 𝘰𝘳 𝘩𝘰𝘭𝘥 𝘭𝘰𝘯𝘨𝘦𝘳 to close the sale.

But what is the right strategy? You have to think and strategize together with your team to get the answers.

4. Scripting

Sales is a communication game where you’re either 𝘵𝘦𝘭𝘭𝘪𝘯𝘨 or 𝘢𝘴𝘬𝘪𝘯𝘨.

The problem is most salespeople are unprepared, they don’t know what to tell or what to ask. This is where the script comes in so that your salesperson has a solid foundation ready to engage in any sales conversations.

With a script, they can be better prepared to handle price objections and still close the sale without discounting!

5. Identify & highlight the strengths

Do you have a better design? Longer durability? Better warranties? better service? bigger inventories?

Are your salespeople more trained?

Are your payment terms, more flexible?

Is your service world-class?

Is the quality better?

Whatever it is, what are your strengths?

Let the salesperson master it!

6. Instill the belief in the product/service, company, & themselves

By identifying and highlighting number 5, they will be able to achieve this. Belief is the foundation of preventing your salesperson from discounting and collapsing under price pressure.

If they don’t believe in the product/service, in the company,  and themselves, they are going to offer more discounts to win against the competition because they feel weak.

But if they have a strong conviction and confidence in themselves, the products/services, and the company, then they will be able to defend their strengths, not resort to discounting, and still win the sales!

7. Constant training & coaching

This is absolutely essential, we can do this through role-play and sharing case studies.

Whenever a salesperson closes a sale, get him or her to share how they closed it, with or without discounts. Identify how they managed to defend against price pressure from the customer or the competitor to maintain the quality and value of your offerings.

They need to be constantly trained and coached to articulate your Unique Selling Proposition (USP) to differentiate between you and your competitors.

So, every single week, sit down with your salesperson, roleplay with them, and see how they defend the price.

Throw price objections at them.

“Your price is too expensive.” How do you handle them?

And once a while when you walk past their desk, ambush them and say:

“Hey man, your competitor is offering a cheaper price”

“Longer payment terms, and the same products.”

“Why should I buy from you?”

Let them rebut,

Let them defend,

Let them answer this objection.

See how they respond provide feedback and suggestions for improvements accordingly.

And that’s how you can train up a masterful sales team and provide them with real solutions. So, they are able to defend against discounts, price wars, and other challenges.

Constant training and constant coaching are key. If you’re able to open the minds of the salesperson, train them well, coach them well, motivate them, then they will stop discounting and start defending. Giving you better results, and more revenue.

Ladies and gentlemen, if we can do it, you can do it too.

Share this post if it has been useful for you, and share with us in the comment section how you overcome discounts.