“You may not be able to control every situation and its outcome, but you can control your attitude and how you deal with it.” – Abhijeet Anand.
As a sales associate, having the right answer when a customer asks “for a deal” and being able to handle the question comfortably can be difficult for new sales associates and even for older associates who are struggling. In this post, we will discuss some suggestions on how to handle these situations, from some of the best sales associates I have known.
“Is this your best price?” – Many customers will ask this question just to see what you will say. Begin by telling your customer that your company regularly shops the marketplace to ensure that they always get the best price available. If your company offers a “price guarantee,” then you can tell your customer they can shop with confidence because if they find the same thing cheaper, with the same terms and conditions, you will be happy to refund the difference.
Some customers will accept this answer and some will not. At least you will know by them asking this question, that one of their buying motivations is “savings.” Knowing that will allow you to tailor your presentation to items that are “on-sale” or that are on “clearance.”
“I know the owner” – You can think, “If you really knew the owner, you would never ask for a deal,” however, that will not help the situation. This comes up quite a bit, particularly if the owner plays a large role in advertising.
A better way to deal with this is to make the person feel important, and to respond by saying: “As a friend of ___________ you know that they rarely discount the price on regular merchandise. ___________ tries to undercut everyone else by offering all of his friends and customers the best prices every day. Now, if you still want to try for a better price, let’s look at what we might have on “clearance” right now. I might be able to work a better price for you on those products.”
“I never pay full price” – In a competitive market, I would agree, certain customers may have gotten a special price on their previous purchase. A small independent store that I know regularly takes 1/3 of the tagged price off for their customers, but their prices are artificially high to accommodate the extra discount.
As a sales person, many company’s say they do not negotiate pricing. Aggressive stores will discount, depending on the circumstances. As a sales person, you need to understand the rules of “the game”. Nationally advertised items usually will rarely be further discounted, they are already loss leaders and those items will sell at the listed price. Regular priced items will have some “play” as long as the customer buying a big ticket, high margin item. The discount might only be small; however, even a small discount can represent a victory for the customer. Sometimes, if a customer is purchasing another big-ticket item, the store might give the customer a more substantial discount off a lower priced supporting piece or accessory; both these examples allow the customer to win, receiving something with a high-perceived value with a low overall margin impact for the store.
Depending on what the customer has bought in the past, it is quite possible they are telling the truth; however, try to negotiate discounts on additional items rather than on the initial single item.
Paul’s Note: Aggressive but margin-conscious Managers will ask these questions of sales people looking for a discount:
How is the customer paying? If the customer wants to finance their purchase then a discount isn’t likely going to happen. Financing becomes more expensive to the store, the longer the financing term offered is. Cash or debit are the best way, and credit cards charge retailers fees, which lessens any potential discount your manager may want to offer.
Is the customer purchasing a VALUE-ADDED PRODUCT? Value added products are things like extra protection, mattress pads, tire production plans etc. If the customer is purchasing these additional, higher margin items then your manager may allow some play in the original item pricing; if not, then a discount isn’t as likely.
Can they pick it up? Many stores offer no-charge delivery; however, delivery is not free, if the customer picks it up their purchase, then the manager may offer a small discount because it saves the company money.
“I want to talk to the manager” – If your customer makes this statement, then you are not in control of your sale, they are. Somehow, you have not handled their price objections very well and they believe that your manager will negotiate with them.
A good way to handle this is to say, “My manager can come out to talk to you, but they are going to tell you the same things that I have said. We believe in the value of our prices and we back them up with our price guarantee. The item you are looking at is one of our nationally branded items and you won’t find it cheaper anywhere.”
Try that as a way to get the sale back under control; if that does not work, get your manager involved. Stay and listen to how they handle the situation, it is a great learning opportunity and your manager should be able to help convert the customer into a sale for you.
“I never buy at the first place we look” – When customers use this passive-aggressive approach, try not to go on the defensive. A better approach is to say, “That’s interesting, can you tell me why you do this?” Then follow up with a phrase like,“Most of my customers, are just the opposite, they have come to learn that we have the best prices, the best selection, the best service, and they know that we will cheerfully take care of any price guarantees, under the same terms and conditions. In addition, if you want to check out any of our competitors, lets do it together on their websites.”
Done at the right point in the sales presentation, this is a great opportunity to educate your customer on why your company deserves their business. If you have built rapport and know what their buying motivation is, responses such as this should work effectively. Many sales experts will tell you that if you use the 6-steps of selling effectively, then most customers will in fact purchase from you regardless of whether your store is the first store, second store, or fifth store the customer has visited.
“Is BLANK here, they always give me a deal?” – This statement quickly reveals what your customer’s principle buying motivation is, savings. Knowing your customers likes to “wheel and deal” actually helps you. Keep them focused on clearance type or sale merchandise. Then respond by saying, “_____ is not here today, so if you want to purchase today, I know I can make sure you walk out of the store today with the best combination of pricing and value that you are going to find anywhere.”
“Is this going on sale soon?” – This is a good sign that your customer is interested and depending on how your store handles price guarantees; you could respond with, “The nice thing about purchasing from us is that it doesn’t matter if it comes on sale for the next __ months because you are covered by our price guarantee. If you see it on sale, we will be happy to refund the savings directly back to you.”
This can work, if it doesn’t then simply excuse yourself for a moment, go, and ask your manager. Your manager likely knows what is going to be advertised in the next few weeks.
Paul’s note: Try to avoid asking your manager for a deal in front of your customer, it makes the situation a “lose/lose” for you and your customer if the answer is “no.” More importantly it makes it difficult for your manager to gauge the situation because they are essentially blindsided and have very little room to maneuver.
“Your competition has this item on for much less than you do and it is almost the same thing …” – The last part is the key … “almost the same thing”. Instead of reacting defensively, say something like “great, lets take a look at it and see what is the same and what is different”. You are now helping them to see the differences and compare your product to the competitions. Look at the specs, look at the supplier, and use your knowledge of your marketplace to show the customer, why your product represents better value than the competitor’s does. If it is the same or very similar, you now have the information your manager is going to need to justify matching the price.
Paul’s note: When doing your monthly competitive shops, try to find identical items that your competitor(s) have that you sell, so you can be prepared.
Paul’s note: When comparing prices, utilize “pricing websites” to find the lowest prices, it is simple and quick. Then look for inclusions and exclusions, such as delivery so that you can demonstrate to your customers that purchasing from you and your store is the best way to meet their needs.
In summary, every sales person deals with this question, sometimes more than once with the same customer. If you are prepared, you stay calm and poised, you can answer this question effectively and satisfy you customer and make the sale. My encouragement to all sales people is to use your down-time and ask your fellow sales people, your managers, and your buyers for their comments and best practices when it comes to dealing with people looking for a better deal.
Good luck,