Everyone wants products cheaper, so how do you stop people from asking for discounts all the time?
This may seem very hard to tackle because of your relationships between you and your clients, however, a business is a business, not a non-for-profit. It is very important to remember what price range your products are to represent (i.e. the correlation between your target market and price mechanism). Also, as your business is looking to maximise results and build on recurring revenue, it is essentially critical to seek out the differences between costs and investments when analysing your clients' purchasing tactics.
I've come up with a simple process for business owners who face this issue constantly:
Why Would They Feel Comfortable Asking?
The majority of the issue lies in the area that the person wanting the discount is comfortable to ask you - as the business owner - for a discount. Why is that? Are you overly friendly with clients and you don't know where to draw the line between business and giving? Or, do you just not have the control of saying 'there are no discounts'?
There are multiple scenarios which you may be facing, so let's look at the scenarios above. In the case where you are overly friendly and don't know where to draw the line, put yourself in the customers' shoes and make yourself aware of what type of business owner you are. If you are overly friendly, you may need to brush up on some sales training or CRM tactics which may need to be implemented - in order to separate personal and business.
In the other scenario where you don't feel like you are the dominant figure, you should look at how you can further amplify your control in small, yet forceful ways. This may be through interrelating yourself to the functionality of your business, or it may simply be saying 'no, we aren't currently giving discounts'. In both ways, you need to present a clear and logical layout of who's in control, and who will make the business what it is.
Always Get Back To The Important Point
Skilled negotiators love to keep things positive, and in this practical sale, you must also get back to the point. The client's wish is to break your price point, and in doing so, they are clearly showing you that they are looking to go cheaper. It is important to satisfy this need by allowing them to see the other options on the table, as well as what they are currently looking at. When exploring other options and giving the client the range that will better suit their price demands, it is crucial that you don't go too low that they feel uncomfortably undervalued, as well as the possible lost sale from doing so.
When looking at what you can do to get back to a positive light, you should also maintain a positive, yet forceful response that clearly shows that your price won't move. In the case that you are continually get asked about whether 'I can get a discount', you should constantly present the same response that makes it clearly evident that you aren't going to move.
You have to think of what the client is wanting, what they are currently seeing; a person who won't give me what I want. Although it may seem childish, if the customer thinks that they can get a product at a lower price point, why not try? That is why it is vital that you remain high, and control the sale process without the interruption of an easy-going image for the business. 'mates rates' are a thing of the past, and if you are seeking to build on recurring revenue, you should be looking for more effective marketing strategies such as sales promotions, loyalty schemes and exclusive client events - not discounts.
When Elon Musk's cousin, Lyndon Rive, asked for a discount for the newfound Tesla car, Musk's response was unexpectedly defiant: "Yeah absolutely. Go to TeslaMotor.com, buy the car online, and the price you see there is the family discount."