Understand Your Buyer > How People Work > Pre-Discounting
What is it?
When speaking with a buyer, it’s all to easy to feel nervous talking about the price. As such, your offering might be £5k, but you find yourself saying £4k because you are worried the person can’t afford it or won’t buy. This is Pre-Discounting.
How does it work?
It’s simply a case of feeling awkward in the moment and making a rash, impulsive decision, rather than following a set plan. In the moment you may think your price is too much and, as you really need the business, may then decide to knock down the price without being asked because you think a lower price is more attractive…. but that’s not always the case.
The problem is that you are costing yourself revenue and profit for nothing more than a second or two of feeling awkward. Being able to hold your nerve, state the price and being prepared for someone to not buy can literally be worth THOUSANDS of pounds.
How can you use it?
Remember that the price of your offer is simply the price. Whatever you think about it and whatever you think the other person can or can’t afford is irrlevet. We’ve all bought things we “can’t afford” through mortgages, loans and credit cards – so whether or not someone can afford something is a bit of a Red herring.
You need to experiment with talking about the price in a factual way – it’s an observation… “This is a cup, this is a pen… this is the price”.
The second you put your emotions and opinions into the mix, it can become very costly very quickly.
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