Alex BermanChief Marketing Sumo
InspireBeats.com$20 million+ Leads Generated
$2 million in B2B SalesDigital Nomad
I used to struggle with negotiation
Was scared that people would say no and not buy
It’s not true
Main takeaway: Even though it seems discounting will close a deal for you, that’
s a myth
Here we go..
3 Reasons Clients Ask for Discounts
1. There’s too much risk
Was on a call with a company that runs a coworking space. They were looking for
startups to help fill the space
“Do you have a free trial or can you do this on commission only?”
He asked because he had a team of brokers filling spots on commission only
But commissioned only salespeople don’t work out...
Source: https://www.quora.com/A-commission-only-sales-job-or-base-+-commission-What-benefits-do-you-see-of-each-one-as-well-as-negatives
Explained the reasoning and he found marketing budget to cover it
Take potential clients risk away with an extremely custom pitch, and figure out
where you fit in
While risk based negotiation is semi legit,
Here’s one you run into a lot in the enterprise that is not...
2. They want to say they tried to negotiate
Enterprise companies are some of the easiest clients to handle once you close
them
But the initial contact and pitching process is taxing
Here’s just one example..
In enterprise, the negotiator isn’t the decision maker
Lots of times it’s a consultant - professional negotiator
It’s a resume play...
The tough part about this ask is you usually do HAVE to give something, but it doesn’t have to be a price reduction.
Give them a free addon
This way, they end up with a good story to put on the resume and you end up
charging full price.
Now that we went over 2 win win scenarios
Let me show you what to avoid..
3. They don’t have the money
You never want to sell your product to somebody who can’t afford it
These people ALWAYS end in a return or an early cancellation
These guys are sometimes hard to pick out early
But you’ll find them when they push back at buy time
Best defense?
IF they have the money, this will work and they’ll buy. If not, they’ll go away and you won’t have to deal with a refund. Win
win.
To recap...
3 Reasons Clients Ask for Discounts:1. There’s too much risk
2. They want to say they negotiated3. They have no $$$
Any Questions?
Alex Berman
Chief Marketing Sumo @ InspireBeats
Mail: [email protected]
Twitter: @alxberman
Need more leads or sales support? http://inspirebeats.com
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