What do you say to a client who says, “What discount can you give us on that price?” So picture this…you’ve just produced a proposal to somebody, they look what you’ve put in it, but it’s perhaps more expensive than they wanted to pay.
So they’ve just turned around to you and said, “Look, we love everything in there, but what can you do by way of a discount? What can you do on price? How much can you reduce it by?”
Now I have a stock response to this which is, “Absolutely nothing, but I don’t blame you for asking.”
Because at the point where they’re asking for a discount, they actually want what you have, they’re just not prepared, or they weren’t ready to pay as much as you’re charging them.
But that’s not to say they don’t want it. It’s not to say they haven’t bought things before that were more expensive than they wanted to pay for it.
Think about it, how many times have you bought something that was more expensive than you wanted to pay?
Now for me, I would call the client out on it. I would say…
“If you’re looking for somebody cheap, there are a few other accountancy firms I can recommend you to, if that’s what you’re looking for.”
“But this is our price. It’s the price that you’re going pay, it’s the price that the last client that I was paid, and it’s the same price that the next client’s going pay as well.”
“If I reduce your price, I’m devaluing our entire service across the board and I know what incredible value that I can provide you with.”
Now if you did want to give them something extra, you could:
- Upgrade a level of service
- Onboard them quicker
- Offer them a faster response time for support
Why I Don’t Discount
Whatever you provide, I certainly wouldn’t discount the price and here’s the reason why.
If you give somebody a discount, what they’ll be thinking is,
“YES… I’ve got a discount.” And they’ll leave you, they’ll drive away or they’ll put the phone down and think, “Yes, I got a discount, I’m really glad I asked.”
Then three or four minutes later they’ll start thinking, “I wonder if we could have got it for less? I wonder if we should have asked for more of a discount? I wonder what the last lot of people paid this firm? I wonder what other people are paying?”
And then they get to a point in their mind where they start thinking, “Why didn’t he just give us the lower price in the first place if that’s what his service is worth? Why didn’t they give us that lower price to start with?”
And THEN what happens is mistrust builds. And I guarantee if you give somebody a discount, what you start to do is ultimately corrode the relationship because you lied in the first place.
You lied about what your price was. And deep down, somewhere at some subconscious level, they now have less trust for you. And for me, I can’t risk that happening because the relationship will start to deteriorate and they will become a pain in the backside client.
Think about it, think about the clients in the past where you’ve given them a discount and what a pain in the backside they became. And YOU thought, ‘Why on earth are you behaving like this? I even gave you a discount.‘
Yes, what you’re actually saying is, ‘I lied to you to start with, therefore it’s no surprise that they became like that.’
Now you handle it in whatever way you want, but for me, we know the value of our service, we know the value that we can provide to our clients.
If somebody asks you for a discount the stock answer is, “I don’t blame you for asking, but absolutely no.”
And what that will do is preserve the relationship moving forward. It will preserve the trust in that relationship and you know what? They will go ahead with it anyway.