I was speaking to a sales organization that was under a full throttle “price attack.”
Every salesperson was complaining how customers were being adamant about receiving a discount if they were going to buy.
It was clear they needed a solution and one they could put into place immediately.
I shared with them what I have found to be the fastest easiest way to cut down on discounting mayhem.
I call it the “3-Option Plan.” Here is how it works:
Option 1: The Ultimate Offer
The first option you give the customer is the ultimate offer. This plan has everything you could possibly imagine and a high price to go along with it. You give it to the customer and let them look at it, and more than likely, they will wince. They will be alarmed by the high price. Perfect! That’s the reaction you want.
Option 2: The Offer that Best Fits the Outcomes They Desire
When the customer rejects your ultimate offer, you then give them option 2. This is a lower-price offer that contains what you feel fits them the best. Idea is they now see this offer and, because their brain is still processing the ultimate offer, they begin to see option 2 as affordable and good.
Option 3: A Skinny Offer that Provides the Bare Minimum
Many times a customer may think option 3 is right, but after looking at it more closely with your guidance, they will begin to see it doesn’t include what they really need to achieve their outcomes. Presto! The customer is now back to taking option 2, which is the option you wanted them to take all along.
The best part about the 3-Option Plan is you get to close the sale in a way the customer feels they’re in control making the decision, while at the same time you’re not having to discount.
As I shared this plan with the sales organization, it was clear some were buying into it and others were skeptical. I asked them to try it for 30 days and let me know their results.
It didn’t even take 30 days for me to begin hearing from salespeople and all were saying the same thing. It works!
Let’s not assume this is a perfect solution to avoid discounting. Sorry, but nothing works that well. But what I will say is by using the process, you will close more of your sales at a higher price than before.
Oh, and make sure you are prepared for some customers to take the ultimate offer, because it will happen!
Copyright 2015, Mark Hunter “The Sales Hunter.” Sales Motivation Blog. Mark Hunter is the author of High-Profit Selling: Win the Sale Without Compromising on Price.