Closing the deal? Don’t lower your prices

Often in business, customers will ask you to lower your price. The temptation to agree could be real, especially if it’s a new customer or a big one. But you should resist the temptation, according to A.J. Agrawal, CEO of Alumnify, Inc. Rather than lowering your price or bargaining, Agrawal suggests three approaches to take.

Change the focus away from the price.

Begin by agreeing with the client that the price may be high, but offer something else that you can afford to negotiate on: free training or better shipping, for example. This lets the customer feel as if he or she is winning.

Discuss other options.

If price seems to be an issue, discuss other products that cost less but still meet the customer’s need. This keeps them as customers and leaves the door open to converting them to the higher level product or service later.

Agree, but explain.

Don’t argue about your price. Explain that it’s set where it is because it’s worth it in comparison to other products, or because your team is better, or simply because “You deserve the best.” Everyone wants to feel good about their purchases.

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