The Logic of Giving Discounts

Every customer considers it as his birthright to ask for discounts at the end of the sales process.

(Many even start asking for discounts in between the sales process and I presume that smart salespeople do not negotiate unless the right time of negotiation starts)

In this blog , I will try and list down the series of discounts that all salespersons give to the customers by default and neither the salesperson nor the customer is made to realise this. So much so that these discounts become a part of the basic product offering.

(This list may or may not be totally applicable in all cases)

  1. Free Delivery
  2. Free Installation
    1. Multiple trips of installation was not possible in first trip due to “door locked” or “no current” etc
  3. Free Training to users on basic usage of machine / service
    1. Multiple trips if multiple users have to be trained and they do not find time together to learn the usage of the machine
  4. Free Training to users on advanced usage of machine / service
  5. Free counselling when the customer had almost made the wrong choice vis a vis his requirement e.g. buying a high end pentium dual core processor laptop whereas the work pattern does not require more than a simple Celeron configuration
  6. Coaching the customer about optimum usage of machine leading to lower cost of running the machine. e.g. An AC customer who purchased a new AC was advised to minimise the no of electronic gadgets in the room for lower cost of running per hour OR a car user was advised to put nitrogen air in the car tyres so that the mileage per litre of petrol is higher
  7. Sharing upcoming market trends with customers e.g. When company internally announced a price revision of 20% from next month and you advised your customer about the same so that he could purchase in this month and save 20% is a kind of discount that was possible because of you
  8. Free gifts announced by your company from time to time
  9. The status and respect that you accord to your known customers in front of his family and friends adds to his lifestyle and brand value.
  10. Your advise to the customer to avoid buying an obsolete technology just because the same appears cheap is a total saving for the customer.

If you monetise the value of the type of discounts named above, you will wonder seriously as to, “Do you really need to give discounts to the customers?” Think about it.

For me, discounts never win you orders. Discount is a tool to say thank you to the customer once the order is principally closed. Do not use it is an excuse to close an order which will never happen, anyways!

Enjoy your sales closings.

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