I’ll be honest. I’m not striving to be the “low price leader” in the copywriting world. I’m a senior-level copywriter with over 20 years of marketing expertise, and I bring a lot of value to every assignment. Which is why when prospective clients ask for a discount, my response is to politely decline…and then talk about the difference that my experience and expertise makes.
If you’re in the B2B (business-to-business) space, how do you respond when prospective clients ask for a lower price? Do you immediately slash your fees, or do you stand firm?
|SHOULD YOU DISCOUNT YOUR PRICES?
Everybody loves a bargain, to feel as though they got a “deal.” In the B2C world, consumers are primed to expect (and often wait for) a “sale.” But if your customers are businesses, does it make sense for you to offer special price-cutting “sales,” too? Well, it depends. Sometimes it makes sense, but often price discounts can do more harm than good.
Before you discount your prices, here are some things to consider…
- Discounts may not be necessary – Many sales people instinctively rush to cut prices in order to close a sale. Instead, work harder to demonstrate the value of what you’re offering, and how it will meet the prospect’s needs.
- Discounts can set a bad precedent – Once you cut your price there’s no going back. Even volume discounts can be problematic, because they lower the reference price for the customer. That lower price is then viewed as the “standard price,” and customers will expect to see that lower price (or better) every time.
- Discounts can lower the perceived value of your product – Keep in mind that many people value things based on its price. If your price is out of line for your industry, this can raise a red flag.
- Discounts might cause you to lose money – Before you offer a discount, do the math. Can your cost structure support the lower price?
- Discounts often attract bargain hunters – If you’re using “sale” pricing to attract new customers, think about if you’ll be attracting the type of loyal customers you actually want.
- Discounts for long-term commitments often make sense – This is a situation where discounts can be a good idea, especially if the customer is willing to pay upfront for an annual or semi-annual commitment. You get the cash in the bank, plus a more loyal customer for the length of the contract.