Salesman’s Toolkit For Handling Customer Discounts

Salsemans toolkit For Handling Customer Discounts

The #customer has a birthright to ask for more and more #discounts from the #salesperson. The #salesperson however, has no duty to give discounts to his customers.

Before I proceed further, let me list down some of the myths associated with the concept of “Discounts” in a typical salesperson’s and a typical customer’s mind.

6 Myths about Discounts in Salespersons Mind

  1. Discounts help in closing the order fast.
  2. Customers do not care for salespersons that do not give any discount.
  3. Discounts make your product more competitive.
  4. The minimum that a salesperson can do is match the competitors discount
  5. The higher the discount, better are the chances of closing the order.
  6. Give all discounts upfront to the customer, because the salesperson does not have to pay for the same anyways.


6 Myths about Discounts in Customers Mind

  1. There is always some discount available with any salesperson in the world.
  2. Any purchase made without discounts is a bad deal.
  3. Discount is customer’s birthright.
  4. It is a good idea to keep on haggling for discounts to a salesperson till such time the salesperson gets frustrated about the same
  5. More discount can be asked even after endorsing a final deal with a salesperson.
  6. All price lists are inflated and therefore customers must ask for a discount.


6 Concepts on Discounts of a professional Salesperson

  1. Discount is a thank you gesture from a salesman to customers once the order is closed.
  2. Discount is not a tool to close sales orders.
  3. Factor discounts in opening offer to a customer.
  4. Whenever a customer asks for discount, salesperson should ask, “ Is my product or service your top choice?”
  5. Sale has to be profitable for the employer to give good incentives to salesperson. Any discount given is actually an outflow from the salesperson pocket indirectly.


6 Steps to handle customers when they ask for discounts?

  • 1) Always present an “Opening Offer” which
  • a) Cannot be the Closing transaction price. Hence opening offer must be more than the desired / aspired closing selling price of salesperson.
  • b) Build Sellers BATNA (Better Alternative to a Negotiated Agreement) in opening offer to make it look real
  • c) Justify the opening offer despite being higher than your competition
  • 2) Allow the customer to create his “Buyers BATNA” in their comfort zone.

    3) Understand the ZOPA (Zone of Possible Agreement) between the Seller’s BATNA and Buyer’s BATNA

    4) Once ZOPA is understood, reiterate that you are the customer’s top choice.

    5) Negotiate for a close in ZOPA.

    6) Once negotiation starts, do not exhibit any rush to close the order but very attentive and respond to the smallest stimulus.

6 reasons for customers NOT to ask for a discount?

  1. When customer is sure that you do not have anything more to offer
  2. When customers are themselves in a rush to buy the product
  3. When customers feel that they have a good deal and are getting value for money
  4. When customer’s want you and your service more than your product
  5. When salesmen make the customer busy in understanding Sellers BATNA
  6. When a salesman makes Buyers BATNA look meaningless. A professional salesperson will do them well by understanding the spirit behind the above listed 24 points.


6 Avoidable emotions when faced with the Discount Question

Next time, you are faced with the “Discount” question from the customer please

  1. Don’t panic
  2. Don’t show excitement
  3. Don’t jump to conclusions
  4. Don’t imagine a closed order
  5. Don’t relax
  6. Don’t start giving the discount even if you have something to offer


How do you make the customers believe that there is no discount available with you?

1. Show quotations given to other customers of the similar profile

2. Show purchase orders from other customers for similar product or service.

3. Show customer testimonials received from other customers of similar Profile as a proof your service delivery standards, post sale.

4. Share with the customer the “Opportunity Assessment Sheet” wherein you show mathematically the financial loss to the customer, if not buying your product or service.

5. “Know your walkaway price” and walk away with confidence

6. Never say “No Discount”. Always ask “Why Discount?”

I am sure you will enjoy the 6-series on handling discounts and the salesman in you will make effective usage of all these points. For any questions and answers on this, you may call me on my hand phone – 9970506000 from 7 – 8 pm on any working day. It will be my pleasure to learn from your question and answer the same.

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