In today’s highly competitive economy you may be asked to discount your price, or have a customer making an unreasonable request, what should you do?

Giving discounts can put you on a “slippery slope” and give your customers the expectation that you will always discount or give in. Here are some tips to help you deal with this sticky situation.

1. Stay within their budget, but don’t discount. For example, you could sell a smaller amount of the same promotional product or suggest a less expensive item.

2. Evaluate the value of the customer. Do they give you repeat business? Do they pay on time? Do they have the ability to give you larger orders and referrals? Do you like working with them? Are you helping them in a tight situation, or is this their new expectation? Some orders are not worth taking.

3. Know your customer. Be aware that some people are trained to always ask for the lowest price, but may not actually expect to get it. You may be in a more powerful position than you realize. Just say no.

4.Get something in return. If you do decide to offer a small discount,  or give them something special , ask for something in return such as advance payment on the order, a larger quantity order, or a contract for continuous promotional products purchases.

5. Provide added value: Do your customers view you as just another commodity seller, or are you providing added value that’s important to them? Consistently providing value such as: expert marketing help, white papers, trend information, virtual samples and additional marketing services will help you to get away from discounting and enable you to sell at higher profit margins.

6. Know your costs. Do you know what it costs you to process an order? Without this information, it’s hard to make a wise decision. The FAST TRACK to Making Money in Promotional Products Sales includes a Plug Up Your Profit Holes audio and the proven formula to analyze your costs.)

I’d like to hear from you. What have you done when a customer asks you to discount your price? Have you ever stopped doing business with a customer because they were only price buyers or always made unreasonable demands?  Please comment below.

Looking for more expert help to grow your sales quickly and easily?  Attend my Sales-Building FREE Workshops at EXPO East March 16. & 17 and 18th. See you there.

Rosalie Marcus, The Promo Biz Coach ™ is a promotional products business expert, coach and speaker. Combining her skills and years of experience in promotional sales, she helps her clients sell more at higher profit margins and dramatically increase their incomes! Reach her at Rosalie@promobizcoach.com or 215-572-6766.