PHILOSOPHIES

Can I have a discount?

Sticking to your price and more importantly being proud of it suggests it was the right place in the first place and that everybody gets the same deal.

 In business we are often asked for discounts or to change our standard terms. Entering into a negotiation on price
 is a dangerous game, and as such can seriously damage your success. Only a small percentage of people actually buy purely on price, but the vast majority buy based on value for money. 

I want you to think of something that you have your eye on to reduce the price… perhaps a big purchase, maybe a house or car? Your initial feeling when you succeed in your negotiations is typically joy and achievement. Yet as time lapses, you wonder if you could have pushed a little harder, could you have got a bigger discount? At the same time, the seller is still unsure if they got the best available deal so both parties are less than satisfied with the negotiation. 

A second example would be each time that you shop on the high street. In this scenario, we typically simply choose our items and pay the requested price with no negotiation, yet typically are more satisfied with our purchase. 

Our lessons from this are simple. Negotiating on price will result in uncertainty of value for both parties. Sticking to your price and more importantly being proud of it suggests it was the right price in the first place, and that everybody gets the same deal. In retail, when something presents great value, the tickets get bigger. The value lines are presented on large tickets, and in many cases, large format graphics and window displays. The more proud you are of your price, the better the perceived value for your customer. 

There will, however, be occasions when people are simply looking to improve the deal with you in some way. Before ever considering a discount, first think what you can add. By giving something extra, you will often create the same result for your customer but will generate better margins for yourself and, in some cases, will even result in increased business. A recent example that I was involved in that resulted in a huge success was giving away a voucher valued at £100 to secure an order. The voucher was then used against a future order, just 10 days later, of nearly £1500! Giving a £100 discount would have had a very different outcome… 

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