You’re standing in front of your customer and you just quoted the number. They balk at the price tag. Knocking the price down feels like the fastest way past that uncomfortable space. It’s definitely easier than working through the objection and holding the price you already know is right.
The truth is, your value and integrity are about to go out the window if you prove to your customer that you were overcharging in the first price, and you can complete their project for a lesser price. The proof is in the discount. Now you’ve not only damaged your wallet, you’ve done damage to your reputation.
When you give in, your discount disappears into the final price. Nobody sees it again. One discount is barely noticeable. A dozen of them over a quarter and that’s real money gone, and because none of it was ever written down, you have no idea how much. Give that power to your employees and watch how fast every job is discounted.
When faced with the question of whether or not you can provide your service for cheaper, ask what should change in the scope to get the project or service into their price range. The price stays true and they get to decide what the budget buys, instead of you eating the difference yourself. If you have a team responsible for pricing and selling, boundaries need to be set. Discounts need approval.
This week, do two things. Next time someone asks for a lower number, ask what should change in scope instead. And if you do give a discount, write it down. Add it up at the end of the quarter and you’ll know exactly what those moments have been costing you.