Blog post 042-When-you-lower-your-price-try-this

Don't keep lowering your price without asking for something in return.  You will make it too easy for the buyer to keep asking.   When you give in to one of the requests such as price reduction, marketing money, extra services, etc., what should go through your mind? "If I do that for the customer, what can I ask the customer to do for me?”

This is your attitude, not your actual statement. Negotiating as a seller is not the same as negotiating as a buyer.  If you get tough and walk away, at the end of the day you haven't sold anything.  Most of the negotiating strategies are designed for buyers and must be adjusted if used by a person trying to make a sale.

Many people complain that customers today have no loyalty.  "Show a customer how to save money on a certain item and they will shop around to see if it can be purchased cheaper from a competitor."  If customers are not loyal, perhaps it is because when you give everything you have, you don't ask for anything in return. Trading builds a relationship.  Giving and taking are part of selling; they are part of the process and not a sign of weakness!

Here are a few points to keep in mind:

1.  Don't be shy about asking for something in return when a customer asks you for a price discount.  If it is done in a spirit of cooperation they will not take offence.  You are not doing anybody favors by giving away something for nothing - the customer will not respect you and you hurt your own self respect.

2.  Never give up anything without getting something in return even if what you get seems trivial.  The customer offers to buy the floor model of the coffee machine at a reduced price.  You, instead of lowering the price, offer a one year free service agreement.

3.  The customer requests a lower price on a specific item. You offer a 3% discount if they double their order.

4.  The customer complains that the price is too high.  You offer to sell your higher quality product line at a slightly lower price.  Explain to the customer that the higher quality is an investment in their customer satisfaction.

5.  Whenever lowering your price, never go down in equal increments. Each time you go down on your price ask for an additional line item or something in return.

If customers are not loyal, perhaps it is because when you give everything you have, you don't ask for anything in return. Trading builds a relationship.