When you think of discounting your prices as a sales rep, you’re going to make less money. There’s still a lot of sales training out there saying you’re likely to get your customers attention with discounting. But this is probably one of the worst pricing strategies out there, and today I’m going to explain to you why with some Pricing Psychology 101.
RESOURCES & LINKS:
“You Are Pricing Your Product WRONG! How to Determine Optimal Price for Profit” (video): https://youtu.be/Tgnt7VUcvqw
“The RIGHT Way to Drive More Online Sales By Discounting Your Products” (video): https://youtu.be/X-QgSpzub0s
“9 Ways to Make Your Expensive Product Look like a Total Steal” (article): https://neilpatel.com/blog/a-total-steal/
►Read more Entrepreneurship tips, Marketing advice and Sales Tactics on my blog: https://neilpatel.com/blog
Let me tell you a story before we go into why you shouldn’t offer discounts (even if someone claims to have the perfect discounting formula).
When you go to the grocery store every once in a while, you’d be out the checkout and you just have to wait a very long time before you can checkout, because there’s probably another person in front of you who’s using all of these coupons.
But those people who use coupons, who are looking for the discounts, are conditioned only to buy when they get those discounts. And when there isn’t a discount they do not buy.
If you want to devalue your product or service and be the cheap solution, by all means, discount away.
But if you want to be the premier solution you shouldn’t discount.
A while back, I thought it’d be interesting to do a study, a test. And I did this in my past company. And after that study I stopped offering discounts all together.
Wondering what the test and experiment was?
Well, I had over thirty reps. I took half my reps and I said “Hey, our minimum price point is $3,600 dollars a year for our software, and you’re only allowed to charge $3,600 or more. In some cases, based on usage, it would be $10,000 a year, $50,000 a year, even $100,000+ a year”.
With the other group, I said “Hey, if people want a discount you can have some wiggle room. Don’t give them too much, but you can wiggle a little bit”.
And you know what we found out? The group that offered discounts closed less deals and made less revenue than the group that said “Hey, we’re not giving a discount”!
Think of sales like dating.
If you’re going after this guy or girl that you’re really attracted to, and they keep telling you “Yes” to everything, are you really going to be attracted to them?
Probably not for long, because you’re going to get whatever you want. But the moment they tell you “No” you’re like “Whoa, I can’t have what I want!”
You’re going to keep going after that chase.
And the moment you tell your potential customers, when they ask for a discount, “No” – they’re more likely to sign up.
I kid you not, when you say “No” they’re more likely to sign up.
So here’s what I want you to do, I’m going to give you a few steps.
First, use the word No. It’s that simple. When someone says “Hey, can I have a discount?” you should say “No, I can’t, because this is what it’s going to cost to give you the quality of the work or product that you’re looking for. If you’re looking for a lower solution or you’re willing to take less features, sure we can talk about a different scale contract, or different pricing. But if this is what you’re looking for, these are the results you want, this is a price you’re going to have to pay.”
So by using the word No and explaining it, you’re going to get a lot less pushback.
Two, even if they say “I got to talk to my boss, or I got to get permission, this is my budget.” You should always say “No problem, if you want I wouldn’t mind jumping on the phone with them as well and explaining why this product or service costs as much, what they’re going to get, and all the value they’re going to get in exchange for this money.”
Three, instead of talking about pricing, you should talk about benefits.
It’s not about how much they’re paying. It’s about what are they getting.
In sales, stop selling features, stop selling your product or service.
Start selling the end goal. Whatever they’re expecting by signing up, that’s what you should be selling.
In general, when it comes to sales, those are the three things you need to follow.
And if you follow them you’re going to be much better off.
You won’t have to discount, and you’ll find that more people are be willing to sign a contract with you and your company.
► If you need help growing your business check out my ad agency Neil Patel Digital @ https://neilpateldigital.com/
►Subscribe: https://goo.gl/ScRTwc to learn more secret SEO tips.
►Find me on Facebook: https://www.facebook.com/neilkpatel/
#business #sales #marketing #entrepreneurship
How To Make Money On Fiverr – Steps For Success
Knowing how to make money of Fiverr is dependent on how to research your market and how you can offer your customers a solution. These tips will get you started on the right path to earning a decent income by using Fiverr.CPA Vs. CPL Vs. Rev. Share
Clicksure is a platform for people who want to be an affiliate and sell affiliate products. Basically, they have found a ton of offers from different companies, which you can then handpick and sell to your list. Currently, at the time of writing this article, my office is focusing mainly on offers from Clicksure when mailing. Why is that? The simple answer is because we’re getting paid. Also, the EPCs are generally higher. Lastly, Clicksure have offers that are CPA and CPL, whereas places like ClickBank and JV Zoo are using Rev. Share offers. Many of you may not be familiar with those three words – CPA, CPL and Rev. Share so let me explain.How Internet Marketing Experts Go About to Make Your Business Grow
When you choose to work with online marketing experts, you will have your very own business partner who will take you through several much-needed processes to make it online. This would include state of the art Website Design Services where they would display the necessary patience and listen to your objectives in order to assist you with your business plan and the best way to make steady progress going forward.Life Lessons Learned From Running a Small Business Online
Running a small business on the internet can benefit you in ways that don’t involve income or financial independence! Right from the start as an entrepreneur you MUST be willing to work and of course this means taking action on any ideas to make things happen! Read on to discover 7 ways entrepreneurs can expect to grow personally when operating any sort of business on the web!How To Start A New Home Based Business Today
The appeal of entrepreneurship has made many more people seriously consider the are idea of setting up a new home based business which can supplement their existing income. Here are 5 steps that will help you get started.What Is A Niche Market And Why Choosing One Will Help You Succeed?
I looked up Wikipedia to find their definition of what is a niche market. Here’s what they had to say… “A niche market is the subset of the market on which a specific product is focusing. The market niche defines the product features aimed at satisfying specific market needs, as well as the price range, production quality and the demographics that is intended to impact.” Pretty self explanatory. Unlike the example I gave earlier about an associate of mine, and his determination to focus on the wide market, when you focus in on a niche market, you’re focused on one particular thing. For example, instead of focusing on all of the marketing markets, each one of those markets are separate niches. Creating a marketing site around social media cater to those who want to do social media marketing. Blogging about email marketing tips & tricks would be welcomed by those who want to see better results from their email marketing campaigns. And so on.Guidelines for Designing Your Website
The top 7 features every website should have. Build a website and gain traffic easier by implementing these 7 important elements.Pinterest and Infographics: Is Your Marketing Strategy Keeping Up With Social Media’s New Darlings?
Pinterest Infographics is a POWERFUL business tool. Funny how people are just now taking notice. It’s probably because the stats are out on it. In December, the world realized that 88% of those on Pinterest purchased a product they pinned/re-pinned! WOW! So, just maybe, if YOUR business adds a Pinterest Infographic about your business or service, you might grab a few new customers? THAT got your attention. Better take a serious look, huh?Free Background Check, No Credit Cards – Ever!
This article will helps you understand how you can know more about checking background information without any credit card. You don’t have to spend some cash on such things which are already being offered for free.Case for Digital Marketing in Healthcare
A digital strategy answers the fundamental questions of who an organization will engage and how. Implementing a digital strategy puts a public face on an organization, thereby increasing outreach capabilities and raising an organization’s public profile.