When Should We Introduce Discounts?
When to Introduce Discounts in B2B Sales
Intro
In the world of B2B sales, discounts can be a powerful tool to close deals and drive revenue. But when is the right time to introduce discounts into the sales process? In this blog post, we will explore tips on when to introduce discounts in B2B sales and how to use them effectively to boost your sales numbers.
What Use Are Discounts In Sales?
Cost is always a factor in sales. In some industries, buyers are more price-sensitive than others. Making something cost less is often a good tool in a negotiation, but only when used right.
Timed correctly, a discount can be that little nudge they need to think, "Yep, I'm in." It's a bit like when a shop has a sale and suddenly everyone wants to buy because they're getting a deal. In B2B sales, offering a discount can make a business feel special, like they're getting an exclusive offer. It shows you're ready to make a deal that's good for both of you, helping build a bridge of trust.
Plus, it can turn a maybe into a definite yes, helping you seal the deal faster. So, using discounts smartly can really help you stand out and make your customers feel valued, paving the way for a great business relationship.
Don't "Drop Your Trousers" Too Soon (So To Speak)
In sales, there's a bit of wisdom that goes, "don't drop your trousers too soon." What it means in simple terms is, don’t be too quick to cut your prices or offer a discount when you’re still getting to know what your customer really needs.
Throwing a discount out there right from the start can mean that the discounted price becomes the established price. Instead, focus on chatting with your customer, finding out what’s bothering them, and how your product or service can help sort it out. Building a good connection and showing the real value of what you’re offering should come first.
Once you’ve done that, and you’ve got them really interested, then you might think about bringing a discount into the picture. It’s all about making sure they see the worth of what you’re selling first. Then, any discount you offer later is like the cherry on top of a cake – it just makes a good deal even sweeter, without making it seem like it’s the only thing worth considering.
When Should You Introduce Discounts?
Picking the perfect moment to throw a discount into the mix is like trying to hit a moving target – tricky but not impossible. You don’t want to toss out discounts the minute you start chatting about what you're selling.
The general rule of thumb is that you can use discounts when they're already sold at the current price and it's a case of when, not if. A time limited discount offer right at the end can mean the difference between someone saying yes this month or in 3 month's time, but only if done right.
You've got to feel this out in terms of when's best for your particular product or service. For some more price-sensitive industries, buyers may need to know your 'best and final' even before actually taking a meeting. For other industries, it may be about establishing the value and then using it as a carrot at the end.
It’s all about timing. Think of it like waiting for the right moment in a game to play your best card. If you play it too early, you might not get the full effect. But if you wait until the moment is just right, you can really make an impact and possibly clinch the deal.
So, keep your discounts in your back pocket until you’ve painted a clear picture of how much value your customer will get from what you’re selling. That way, when you finally offer that discount, it’s not just about saving money; it’s about making an irresistible offer they can’t refuse.
Finding A Good Story Behind The Discount
When you're thinking about giving a discount in B2B sales, it's really important to have a solid reason for doing it. It's like when you're doing a group project and you decide to take on extra work because you want to get a good grade, not just because you're feeling nice. Having a strong reason for your discount shows you're not just throwing out deals left and right but making a smart move for your business and theirs. Try to make a story around it:
End of quarter discount which will go away forever if they don't sign by XX date
1st meeting sign up discount
Bulk discounts
Paying annually discount or similar long term lock in discount
Initial trial discount to win their loyalty e.g. 1st month 10% off
(Bit cheesy but it does work sometimes) About how you had to beg and plead with your manager to let you give the discount
Or go for honesty about you specifically - "I'm just 1 sale away from the next tier in my bonus so I'm keen to get this over the line. This is the max I can do but it has to line up with my bonus deadlines so please sign by XX date."
You could be offering a discount to encourage buying more stuff at once, saying thank you to a customer who's always sticking by you, or even matching a price from another company to keep your customer from going to them. It's about making sure there's a clear benefit for both of you.
This way, your customer understands that this discount is part of a bigger plan to help them out and isn't just a random price drop. It makes the whole thing feel more special and thought out, like you're really looking out for their best interests.
Use Discounts to Recover Lost or Inactive Customers
Ever had a mate you lost touch with, then out of the blue, they reach out with a cool plan to catch up? That’s a bit like using discounts to bring back customers who haven’t bought from you in a while. It’s your way of waving, saying, "Hey, remember us? We’ve got something special for you." This move can make old customers feel noticed and valued again. It’s like getting a VIP invite - it makes you want to show up, right?
When you've got customers who’ve gone quiet or picked someone else, a cleverly timed discount can be just the thing to grab their attention. It's like saying, “We’ve missed you, and here’s a little something to show it.” But here’s the trick: you’ve got to make them feel like they’re getting back into something good. Tell them it’s a special deal, just for them, to make reconnecting even sweeter. By doing this, you’re not just offering a cheaper price; you’re opening the door to get back on track and showing you're keen to keep them around.
