-Discounting is a hot topic in sales especially in this prolonged, down economy. However, discounting is never the best choice regardless of the situation. Here is a good Eye on Sales article speaking to that point.
Here is a good suggestion:
The first question I ask anyone who thinks they need to lower their price to close a sale is if they know at least 3 needs the customer has and if they have been able to measure the real value of those needs with the customer.
Exactly. The author is speaking to qualifying which is the core of all successful selling. This is why it is of the utmost importance to see a sales candidate’s qualifying ability in your interview process. Do not provide all of the information to the candidate – hold some back to see if they ask for it. Do not make the initial interview too easy – provide a little resistance. These types of techniques give you a glimpse into the candidate’s qualifying which you can’t get from a resume. If they cannot qualify, they cannot handle money/pricing issues.
If the candidate or salesperson is adamant about discounting, they get caught in a trap:
It’s easy to cut your price. Anybody can do it. But what I guarantee when you cut your price for the first time, you’ll do it again and again. I’ve yet to meet a salesperson who has reduced their price only once.
Always qualify candidates for qualifying to avoid this trap.