Why You Must Avoid Discounting

Pictured with some of the inspiring delegates from National Achievers Congress

Last week I attended the National Achievers Congress. It was wonderful to spend time with fellow business owners to learn new skills and network.

Delegates paid good money, travelled for several hours and even stayed in nearby hotels. Most people I spoke to spent ￡500 over two days including the awful overpriced food and drink that often accompany this kind of event.

There were 12 speakers from around the world.

Speakers A

Sold hard and discounted massively on their courses only if you bought at the event.

Speakers B

Gave massive value and sold nothing.

Who benefitted most?

You would think Speakers A since they sold hard and gave outrageous discounts. You give an ￡18,000 offer for ￡2,000 that sounds pretty amazing. Right?

Wrong!

If you offer a massive discount on a product, there’s something wrong with it. This sometimes works in consumer, not B2B. There's always exceptions like Black Friday Sales. Overall, discounting doesn't work.

Russell Brand, Tia Lopez and Gary Vaynerchuk were the best speakers and sold nothing. Afterwards, everyone was on Amazon buying their books, downloading their Kindles, podcasts and telling everyone about them. That has more value than any heavily discounted product.

When I started my own coaching business, I decided to be 50% cheaper than the competition and I struggled to get work. Clients only wanted massive discounts.

With 25 testimonials from sales training and speaking at events, I now charge a premium rate since the sales, mindset and personal development work I offer is interactive, you learn quicker and gets results.

In free events, I accept lots of selling… which is why I no longer attend free events.

At paid-for events, delegates don’t appreciate selling unless it’s at the very end. People want to buy, they don't want to be sold to.

When an accountancy firm from the north of England complained about the heavy selling during the break, I asked what they wanted, what their deadline was, their why and how they liked to learn. 20 minutes later, I won the business. I only talked for 5 minutes and didn’t discount.

1. Always pay for quality, even if it costs more.
2. Don’t discount. If someone wants a discount, don’t start selling again, ask why they want a discount.
3. Maybe there’s something you didn’t uncover in the sales process.
4. Recap their needs and what benefits you offer.
5. Always have a deadline, otherwise, delays and indecision occur – that can be the death of a sale.

Niraj Kapur is an expert sales coach and trainer, keynote speaker and author of the Amazon bestseller Everybody Works in Sales. He has trained Barclays, Sainsbury's and over 100 SME’s and entrepreneurs. To learn about mindset, personal development, overcoming objections and to hit your targets, get in touch with Niraj today through LinkedIn, [email protected] or + 44 7733 179854