Why Do Clients Ask For Discount Price? What do You Do?
Do you know how to say no to discount when your client is asking for it? Do you run a business and your clients are always asking for discount and you are not happy with it? You may have noticed if you run a business that most of your clients ask for discount when negotiating for a service you are about to render them and you might be wondering what exactly it Is about and why it is rampant.
There are some reasons why they do and not to sound like an advocate of discounts or anything but there are some very good reasons why they ask for discounts, you would be amazed how giving discount could boost your business.
What is the best no discount response to customer asking for discount?
I would be giving you some reasons why your clients request for discounts. I must say not that giving discounts can not only boost your business but also crumble it.
It is very important therefore to make sure that you employ strategies that would also be extremely profitable to you before giving out any form of discount to anyone and for any reason.
Some business experts vehemently advice that giving discounts should be avoided by all means as it is a business killer. There are some rare and unique situations that would require you to give a discount to and with sample reply to reject customer request for discount;
One reason your clients ask for discount when making purchase is due to their budget. If you observe closely, you would realise that some of your clients work on a very low and tight budget especially non profitable organisations. Because they are trying to help out a good cause they may need to get services or goods at discounted rates to be able to achieve their aim.
It is possible that you charge such clients and all other clients looking for discounts your normal service fee and also make your profits but you may look for other means to give them a discount.
For example, providing a means to transport the goods to their destination, adding a little gift bag to their purchases, organizing promos that they can participate in etc. by doing this, you are increasing the patronage level and opening doors for new clients.
2. Booking ahead of Time
This is applicable to those who are into the business of rentals or event management. A client might book for your event center eight months before the occasion and they will expect that they get it at a discounted price because they booked months before and have given a long term notice, therefore, they should not pay the same amounts as someone who would give two weeks’ notice or even less.
3. Return Business
Another reason customers ask for discounts is when they return to do business with you. This is a situation where someone who patronizes your services a lot of times feels they deserve a discount.
It is logical that a consistent customer gets customer privileges once in awhile because there is always competition and discounts can be a good way to keep your clients to yourself. This will help you build your business and strengthen the customer relationship.
This is very common among us. This is when a client refers you to another client or refers another client to you, whichever means by which the connection is made they might expect that because of this gesture, you give them a discount, which will be profitable to you and your business in a very big way.
5. Multiple Events Sign Up
When a client signs up from multiple events at a time, they may request for discounts because they are bring to you multiple events at the same time which would cost them a lot, therefore it may be logically to give a discount in this situation and it may help build your business and increase your client list.
6. Upfront Payment
When a client pays for a service before time, for example, a tenant that always pays his or rent days or weeks before it is possible that they may request for discount on one of his/her payments.
7. Quality of your Product
Another reason though not the client fault why they ask for discount is due to the quality of the product they are buying. This may sound unreasonable I must say, but the quality of your product can push a client to request for a discount to purchase the product in a large quantity.
Once your products are a little bit below standard and you clients are aware of this fact, them asking for a discount is inevitable.
As an entrepreneur, sometimes you may have to lose to gain profit, I am not saying that discounts are losses but I see them as a means to get more profit and a good means to build customer relationship with your clients.
So, if you are into a business and are yet to give any customer a discount since your business started I suggest you try it once and observe the benefit of giving discounts sometimes.