How do you avoid discounting your value proposition?

You should also know all of the numbers better than your prospect. Your customer wants to know how investing in your solution saves them money over time. Developing a cost analysis spreadsheet and factoring in your customer's numbers will help the prospect see the actual cost savings. This often works with customers that are very logical and analytical. I once sold a product that was 20 times more expensive than my competitor's. However, my product helped solve a larger and much more expensive problem. It also saved my customer employee time. I put together a calculator that allowed for individual customer numbers allowing them to see how spending 20 times more per unit actually saved them hundreds of thousands of dollars per year.

If you have not been able to do discovery and asking the right the questions of your prospects to get the numbers that drive the economic impact of how they are currently doing things compared to what it would look like if they used your services. This is an Economic Impact conversation, not ROI. Don't fall into the ROI trap. Nobody believes the numbers you come up with, ever. If they are their own numbers based on our questions. Then you have shown value. Which makes the discount question easier.

If you have not been able to do discovery and asking the right the questions of your prospects to get the numbers that drive the economic impact of how they are currently doing things compared to what it would look like if they used your services. This is an Economic Impact conversation, not ROI. Don't fall into the ROI trap. Nobody believes the numbers you come up with, ever. If they are their own numbers based on our questions. Then you have shown value. Which makes the discount question easier.

I recognize that every customer is not necessarily my customer. When selling complex products force fitting could mean more work after the sale and a frustrated customer. When a customer is my customer they return and each sale is easier to complete because I understand their needs.

I use "Present, Past, Future" for many of my preliminary conversations with potential customers. Can you tell me more about the solution you have now. What solution did you have before? What does success look like 6 months from now if we work together. Can you tell me more about the solution you have now. This will give you a sense of what they are paying if you are familiar with your competition. What solution did you have before? This question can give you a sense of if they went forward (spent more) or backwards (spent less) the last time they made a change. What does success look like 6 months from now if we work together. You can circle back to this when negotiating. I know you said "XYZ" was important our solution will offer it.

One of the most effective ways to build trust early in the process is by having a strong qualification process. Your prospects don't want to waste time exploring an option that is out of their budget, can't be delivered on their timeline, or worst of all... doesn't actually solve their problem. Be direct and set the right expectation on the budget, a realistic timeline, and the problem you solve. Why waste your time and theirs? If you are direct and get the awkward "first date" questions out of the way early you can focus on solving their problem and consulting them through the process.

Only be quick to answer an objection if you have a well-thought-out response to the objection. If an objection is brought up that you haven't heard before, ask permission to do some research on what they have brought up and ask to come back once you have an answer. This will help build your credibility, improves rapport and trust, and allows you another follow-up meeting.

STOP HANDLING OBJECTIONS! We need to marinate in objections. Digging deeper with additional questions such as: "Before I answer that, can you help me understand what makes you curious about it? This will help me frame the answer to your specific perspective."

Great comment above. I train more experienced sales people the value / cost / benefit formula. Perceived value minus perceived cost equals perceived benefit. It is the sales person’s job to increase value and benefit whilst minimising perceived costs. Discounting is a no no. Adding value and adding benefit is a yes yes. That is what selling is about!

You need to thoroughly understand the problem you solve. And you need to thoroughly understand the impact of that problem. Armed with that info, you should be able to show the prospect both the ROI of your solution AND the cost to them of NOT choosing your solution (staying status quo, etc.). If you can do that, never a need to discount or use other pricing incentives.