The #1 Mistake Sales Reps Make When Asked for a Discount

Summary

This sales strategy video focuses on handling price objections by reframing the conversation from cost to desired outcomes. By questioning the true motivations behind a client's request for a lower price, the salesperson shifts the focus from price-based thinking to results-based thinking. The script includes industry-specific examples like marketing, home improvement, employee benefits, and fitness, demonstrating how to ask probing questions and reframe the conversation to highlight the value of achieving the end results. The key technique is using tone, questioning, and reframing to ensure the conversation stays focused on the benefits, not just the price.

Takeaways

• 😀 Understand the reason behind a prospect's request for a cheaper price to better address their needs and build trust.
• 😀 Don't directly answer the question about lowering the price, instead ask the prospect why they’re asking for it.
• 😀 Use probing questions like 'What specifically did they offer you?' to gather information on competitors' offers and differentiate your product or service.
• 😀 Recognize that prospects may sometimes lie about competitor prices, and verify their claims by asking specific follow-up questions.
• 😀 Reframe the conversation from a price-based focus to a result-based focus, asking the prospect which is more important: price or the desired result.
• 😀 When addressing price concerns, use language like 'the cheapest price' to highlight potential downsides, creating a subtle negative association with the cheapest option.
• 😀 Keep the prospect focused on their ultimate goal (e.g., scaling to $12 million/month), rather than on short-term costs, by reiterating the results they desire.
• 😀 Use body language, tone, and facial expressions to reinforce your verbal communication and create a stronger impact on the prospect.
• 😀 Loop back to the results-based frame if the prospect tries to return to cost-based thinking by repeatedly asking questions like, 'What’s going to put you in the best position to achieve your goals?'
• 😀 Tailor your approach to your specific industry (e.g., marketing, windows, employee benefits, fitness) to make the framing relevant and effective for the prospect’s needs.

Q & A

Why is it important to understand the reason behind a customer's request for a lower price?

Understanding the reason behind the request allows you to better address their concerns, whether it's about finding a cheaper option, budget constraints, or comparing with competitors. It helps to identify whether the request is price-based or value-based, enabling you to reframe the conversation toward the desired outcome.

What should you ask when a customer mentions a competitor's lower price?

You should ask, 'What specifically did they offer you?' This helps you understand if the competitor's product or service is comparable to yours in terms of quality and features, and whether the lower price truly reflects a better value.

Why might a customer lie about a competitor offering a lower price?

A customer might lie because they don’t trust you or want to leverage the situation to get a better deal. It's important to address this issue early in the conversation to build trust and gather accurate information.

How does tone and body language influence the sales conversation, especially regarding price?

Tone and body language play a significant role in conveying skepticism or concern. By using a concerned tone and non-verbal cues, you can make the customer rethink the importance of the cheapest price and shift their focus toward results.

How do you shift a customer’s focus from price to results-based thinking?

You can shift the focus by asking, 'Is the cheapest price the most important thing to you or getting XYZ result?' This question encourages the customer to consider the value and outcome they will receive, rather than just the price.

What is the significance of using the word 'cheapest' in the sales conversation?

The word 'cheapest' carries a negative connotation, making the customer associate it with lower quality or subpar results. By emphasizing 'cheapest price' in a skeptical tone, you highlight the potential downsides of choosing price over quality and results.

How do you maintain control of the conversation when a customer insists on a lower price?

You maintain control by consistently reframing the conversation to focus on the result the customer wants. By asking thoughtful questions that connect the price with the desired outcome, you guide them back to the importance of achieving their goals rather than just saving money.

Can you give an example of how to reframe a conversation when selling a product like windows?

If a customer requests a cheaper price for windows, you could ask, 'Is the cheapest windows the most important thing to you, or is it actually installing high-quality windows that prevent the cold draft and ensure your kids can sleep at night?' This redirects their attention to the benefit and long-term value of the product.

What strategy can be used if a customer is considering a cheaper benefits package for their employees?

You can ask, 'Is the cheapest benefit package the most important thing to you, or is it providing a plan that helps you retain your top executives and prevent them from leaving?' This helps the customer focus on the value of keeping their employees, rather than just the cost of the package.

How do you handle situations where a customer is focused on price, but their real need is based on a deeper issue?

You should use probing questions to uncover their deeper concerns, then reframe the conversation to align with their real needs. For example, if a customer is focused on price for a fitness plan but actually wants to live longer for their family, you can reframe the conversation to focus on the long-term health benefits rather than the cost.