Avoid the Discounting Game

I find most people in professional services organizations forget that their prospects can’t get them anywhere else. Many subject matter experts who are also responsible for new business development forget their unique value and allow themselves to get stuck negotiating discounts for their services.

You get more of what you tolerate. You get more of what you think you deserve.

Check yourself when negotiating your next new deal. Are you getting stuck, once again, feeling like you need to discount your offering to get the deal? Are you questioning whether you and your team are worth the figure you’re asking for? Prospects are almost always going to ask for a discount; that’s what they do, but it doesn’t mean you need to give it to them. Remember, your prospect can’t get you and your team anywhere else. Your experience, your approach to your subject matter, your style of communication and problem solving are unique to you. Your prospect is signing up to buy YOU. Why would you discount yourself?

Some tips to keep in mind when talking about money with prospects:

Talk about the details of pricing later in your process after you have established your unique value and the prospect has gotten attached to you.
If a prospect asks for a discount, inquire more about what’s driving the request. Have the courage to probe into what they are really needing; it’s often different than what you think.
If you do give a discount, something must give on their end. You must get something in return—a smaller scope, better payment terms, a longer agreement, etc. Make the negotiation a two-way street.
Be prepared for this conversation. Decide in advance how you’re going to handle a discount request. There is no reason to be surprised. You know it’s coming.
Get clear. Generally, people will follow your lead if you have a clear, reasonable position and can explain it effectively.

How comfortable you are with charging a premium and not discounting is directly related to your sense of your value and the value of your team’s offering. Challenge yourself to push through old ways of thinking about your value. Notice lazy habits of just giving people what they want because you’re afraid they’ll walk away. Stand up for yourself with quiet confidence.

Make a plan with your team for handling requests for discounts; anchor into a clear philosophy and approach to this situation when negotiating your next new business deal. Challenge yourself to take a risk and try something different. I promise it will feel good to hold your ground, at least once. Give it a try.

Onward.

Tom