How do you deal with price sensitivity and discounting in retail sales?

2 Demonstrate your value proposition and differentiation

The second step to deal with price sensitivity and discounting is to demonstrate how your products and services can meet your customers' needs and expectations better than your competitors. You need to communicate your value proposition and differentiation clearly and convincingly, using features, benefits, testimonials, stories, and demonstrations. You also need to highlight any unique or exclusive aspects of your products and services, such as quality, warranty, support, or loyalty programs. By doing this, you can justify your prices and create a perception of value and trust.

3 Use price anchoring and framing techniques

The third step to deal with price sensitivity and discounting is to use price anchoring and framing techniques to influence your customers' perception of your prices. Price anchoring is the process of setting a reference point for your customers to compare your prices with, such as the original price, the competitor's price, or the cost of not buying. Price framing is the process of presenting your prices in a favorable way, such as using bundles, discounts, incentives, or payment options. By using these techniques, you can make your prices seem more reasonable and attractive.

4 Handle objections and negotiate confidently

The fourth step to deal with price sensitivity and discounting is to handle any objections or requests for discounts that your customers may have. You need to anticipate and prepare for common objections, such as "It's too expensive", "I can get it cheaper elsewhere", or "Can you do better?". You also need to use effective negotiation skills, such as asking open-ended questions, acknowledging their concerns, offering alternatives, and proposing win-win solutions. You should avoid giving discounts without getting something in return, such as a larger order, a referral, or a testimonial. You should also avoid lowering your prices too quickly or too often, as this can damage your credibility and profitability.

5 Close the sale and follow up

The fifth step to deal with price sensitivity and discounting is to close the sale and follow up with your customers. You need to recognize the buying signals, such as positive feedback, agreement, or questions, and ask for the sale confidently and assertively. You also need to overcome any last-minute hesitation or resistance, such as by using urgency, scarcity, or social proof. After the sale, you need to follow up with your customers to thank them, confirm their satisfaction, ask for feedback, and encourage repeat purchases and referrals. By doing this, you can build long-term relationships and loyalty with your customers.

6 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?