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Stop Sales Staff From Discounting Products To Close Sales

Posted in: Sales Consulting

Sales Discounting, Should Sales Staff Do It?

If you have to discount to bring in the sales, then are you really bringing in quality leads? Is sales discounting worth it? This is a very good question to consider when you ask, “How do I get my salespeople to stop discounting our products and services?”

To really understand this problem, we need to understand why we give discounts in the first place, what benefits they have for the company and when you should and should not offer discounts.

Discounts and coupons are often used to bring in new sales. Now we need to reconsider whether or not this is a proper method of bringing in new sales. Would it make more sense to get quality leads and then to give your discounts to repeat customers in order to thank them for their loyal service?

A customer who chooses you just because of a discount is one who may not truly value your product and what it has to offer.

What are you selling? sales discounting

One of the first things you need to ask is what is for sale and why you’re charging what you’re charging for it.

Sometimes salespeople offer discounts because they want to quickly draw in a sale but will that person be a repeat customer once the sale price is gone? Are they buying because they really like and want the product or are they buying because they are enticed by the discount?

People love to get a deal. This has been proven time and time again in sales case studies. In fact, studies have been done to show that people will take a plain old rock found off the ground if you put in the street with a sign that reads “free.” They don’t need the rock. They probably don’t think there is anything special about the rock. But they feel compelled to take something because it’s free.

People may feel compelled to take something just because it’s free

This is the same impulse that causes the consumer to jump on something when there is a discount. So again ask yourself, sales discounting is it worth is?

So we had to take a look at “Why is that happening?” And the question is, is that because of–again, we’re back to weak sales leadership? As a salesperson, if you are not confident in your product and confident in the price, it’s going to show when you are giving your sales pitch.

When the conversation comes around to price, if your voice quivers or if you do not feel confident in the price, then the person on the buying end is likely to take this as a sign to ask you for a discount. When you are confident in the product and the price point, you should be able to confidently sell it at this price point.

Why do people buy?

When looking at how to stop discounting by your sales team, you need to look at why people buy.

There are so many different reasons why people choose to buy things and why they pick what they pick to buy. Let’s create an example: we all need toilet paper, right? But if you surveyed five different consumers on their toilet paper purchases, you are likely to find that they each have different reasons for why they are choosing this toilet paper.

Some people buy based on price. Some people buy based on the ply and the softness of the toilet paper. Still, others buy the brand that they always find at their favorite store. One might buy the brand that their mother always used because it reminds them of home and gives them comfort and familiarity. While we all need toilet paper, we don’t all have the same reasons for why we choose what we choose.

People are discounting- this is a symptom of a bigger problem.

When you spot the symptom, you need to take the time to discover the bigger cause. Then you can fix it. What are you doing to correct or prevent this problem in your sales team?