Never Give Away Your Profits

Never Give Away Your Profits:
Mark Hunter, author of High-Profit Selling (a hot new book I highly recommend) shares how he learned to deal with a prospect who was continually on his case to cut him a better deal. With a big sale on the line, it's always a challenge to handle these delicate situations.

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I used to hate to call on Mr. Big. Back then, I was working for General Foods, selling consumer goods to Mr. Big's company.  Every time I went into his office, my stomach started churning.

“Mark,” he'd say, “You gotta give me a better deal or I'll have to give my business to your competitor.”

Before you know it, I'd be cutting my price, lowering my margins and throwing in extras. The whole time I was doing it, I knew it wasn't smart, but I didn't know what else to do.

Until one day, I decided it was time to say “no.” For several days leading up to my upcoming meeting with “Mr. Big,” I practiced how to say it in a strong, stern voice. I also worked on how to share my rationale for why it couldn't be done.
When the time came, the only thing that I remembered was the word “no.” Worse yet, it was as if I were halfway apologizing to him as I said it.

He responded differently than I expected. I thought he'd immediately throw me out of his office and simultaneously call my competitor. What shocked me is he didn't do any of that. Rather, he responded with a question: “Why?”

Suddenly, I found myself having a discussion with him regarding his business and his needs.  It's almost as if a switch had been flipped. I went from being the polite salesperson who rolled over and gave in when the customer asked for a discount to now being the business partner who was working with him to help him achieve his goals.

I learned that you can indeed say “no” to a customer's demand for a lower price.

All of the threats he'd been making to me were just that -- threats. Did I lose some business? Yes, I lost a little volume. It didn't matter, though, because what I gained from selling at full price was profit that exceeded many times over the slight decrease in volume.
Click here to learn more about High-Profit Selling, Mark Hunter's new book that shows you how to win sales without compromising on price.  

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Your Turn: How have you dealt with prospects who continually ask you for better deals? Share your ideas in the comments section of my blog.