Discounting really is a last resort. And I cringe writing about it because too many people leave way too much money on the table when the fabled price negotiation comes up.
So let’s talk about a better approach to discounting: Bonus to Close. The concept is that instead of giving the prospect cash (a discount), I’m going to give them something that isn’t cash that you’ll appreciate.
For example:
- An upgrade they liked at a discount (instead of discounting the entire job)
- An extra service (i.e. include a tear out or some electrical or plumbing work as part of the installation)
- A discount on a future purchase (i.e 10% off a bath remodel if used within three months)
- An extra garage cabinet or two you have sitting in the warehouse
- Extended warranty outside the regular cabinet warranty
Get the idea? You get to keep your hard-earned cash and the customer gets to feel special.
P.S. If your sales commission structure doesn’t encourage behavior like this, it’s time to rethink your plan.
