You're in an IT Sales negotiation. How do you handle a client demanding more discounts?
When negotiating IT sales, facing clients who push for more discounts is common. Here’s how to manage these situations effectively:
How do you handle discount demands in sales negotiations? Share your experiences.
You're in an IT Sales negotiation. How do you handle a client demanding more discounts?
When negotiating IT sales, facing clients who push for more discounts is common. Here’s how to manage these situations effectively:
How do you handle discount demands in sales negotiations? Share your experiences.
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Clients often push for discounts, but there’s usually more behind the ask than just price. Start by uncovering their main concerns—are they focused on long-term value, flexibility, or a smooth onboarding? Rather than immediately reducing price, address these needs in other ways, like offering extended support or tailored training. One of our clients was concerned about costs, but after learning their priority was a seamless rollout, we offered dedicated implementation support instead of a discount. This reassured them, preserved our pricing, and transformed the negotiation into a trust-building partnership.
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When a client demands more discounts, I focus on the value of our product or service rather than just lowering the price. I explain how our solution will help them save money in the long run, improve efficiency, or provide unique benefits. If necessary, I can offer flexible options like phased implementation or bundling services to meet their budget, but I ensure that the focus remains on the quality and long-term value of what we offer.
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Emphasize Value Over Price: Highlight the long-term benefits, ROI, and unique features of your solution. Offer Flexible Terms: Propose payment plans, extended warranties, or additional services instead of cutting prices. Present Case Studies: Share success stories of similar clients who invested and saw results. Negotiate Trade-Offs: If a discount is necessary, ask for longer contract terms, larger volume commitments, or referrals in return. Stay Firm on Bottom Line: Politely but confidently reinforce the solution’s worth and avoid eroding margins.
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I can drive the message of value over price, reminding the customer each time they request additional discounts that their pain is being alleviated and, therefore, so are the costs in time and money through our proposed solution. If they ask for a discount, I could offer flexible options - an alteration in the package or a future discount for a longer contract. That would show our commitment to a mutually beneficial partnership without compromising on quality.
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When a client asks for more discounts, I first try to understand what matters most to them: speed, quality, or cost. 1. Speed: If they prioritize speed, I explain that quicker delivery often costs more. I focus on the benefits of getting the project done fast. 2.Quality: If quality is their main concern, I remind them that investing in quality can save money in the long run. I like to say, "Buy it nice or buy it twice," to emphasize that good quality pays off. 3.Cost: If cost is their top priority, I acknowledge their budget limits while ensuring they feel confident in the value of our solution. I might suggest phased projects to help them stay within budget. Sell the value over the cost!
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KIRAN BABU
Entreprenuer (Mobility) , Product Manager , India's Biggest Serial Entrepreneur in Making
-Acknowledge the client’s request for a discount and understand their reasons (budget constraints, competitive offers, etc.). -Reinforce the value your solution brings—emphasize ROI, quality, and long-term benefits rather than just the initial price. -Offer alternatives or tailored solutions that meet their needs without significantly lowering the price (e.g., adjusting scope, payment terms). -Politely explain your pricing structure and any limitations, such as fixed costs, to justify why deeper discounts may not be feasible. -If applicable, offer discounts based on a longer commitment, higher volumes, or bundling services. -If the price is non-negotiable, propose more flexible payment plans to ease cash flow concerns.
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Handling a client demanding more discounts on IT services and solutions requires a balanced approach to maintain profitability while ensuring the relationship stays positive. 1. Understand the Motivation: 2. Emphasize Value Over Price 3. Offer Conditional Discounts: Example: Longer contract terms, Higher volume commitments, Additional services or bundling of solutions 4. Propose Alternative Solutions 5. Reframe the Conversation: (e.g., lower maintenance or fewer errors). 6. Negotiate Wisely: You can also phase discounts gradually instead of providing an upfront cut, giving you flexibility for future adjustments. 7. Hold Firm on Critical Areas:
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Hello, First of all, we need to clarify whether we have presented clearly to the Decision Maker our competitive advantages and unique selling proposition so that our interaction may not be reduced only to who has the lower price. Then we should understand the client's position: maybe he/she uses our offer only to convince his/her existing provider to improve their offer. There may be exceptions when the customer has a temporary financial challenge (e.g. issues with cashflow) and needs our support for a short period of time until he/she gets better financially. Knowing very well the customer and managing as good as possible the negotiation provide us with a clear understanding of his decision criteria and financial demands. Best regards,
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If your sales pitch is done right the need for negotiating wouldn't arise in the first place :) A well-crafted pitch should clearly convey the value and address client concerns upfront, minimizing the need for negotiations.
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1) Ensure you actually have the conversation. Don't attempt such important communication asynchronously via email, Slack, SMS or whatsapp. 2) Typically every deal has multiple stakeholders so I would call each stakeholder individually to understand their needs and concerns.
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