How do you negotiate and handle discounts and concessions in corporate sales?

3 Prepare multiple options

One way to avoid giving away too much in a negotiation is to prepare multiple options for the customer. Options give the customer a sense of control and flexibility, and allow you to trade-off different elements of value. For example, you can offer a lower price with less features, a higher price with more features, or a medium price with some features and some concessions. Options also help you test the customer's willingness to pay and uncover their preferences.

4 Use anchoring and framing

Anchoring and framing are psychological techniques that influence how the customer perceives your offer. Anchoring is the tendency to rely on the first piece of information presented as a reference point. Framing is the way you present your offer in terms of positive or negative attributes. You can use anchoring and framing to set high expectations and highlight the value of your offer. For example, you can start with a high price and then offer a discount, or frame your offer as a solution to a problem or an opportunity to gain.

5 Handle objections with empathy and evidence

Objections are inevitable in any negotiation, and they can be a sign of interest or concern from the customer. The key to handling objections is to listen actively, empathize with the customer, and respond with evidence. Listening shows that you respect the customer and understand their needs. Empathizing shows that you care about their situation and emotions. Responding with evidence shows that you have a credible and logical reason for your offer. For example, you can use testimonials, case studies, or data to support your claims.

6 Know when to close

Closing is the final step of the negotiation, where you ask for the customer's commitment and agreement. Knowing when to close is important, because you don't want to miss an opportunity or lose a deal. You can use signals, such as verbal cues, body language, or actions, to indicate the customer's readiness to close. For example, if the customer asks about the next steps, shows enthusiasm, or nods along, you can use a trial close, such as "Are you happy with this offer?" or "How do you feel about moving forward?" If the customer agrees, you can confirm the details and finalize the deal.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?