Saying no to a discount without losing the order

Sooner or later a customer will ask you for a discount. Sometimes it comes before the quote goes out, and sometimes it comes right at the end, just before they place the purchase order. How you answer makes a big difference to your margin, and to how the customer sees you from then on.

My biggest order

One year we won our biggest project ever from a key account, specified across multiple locations. I'd visited that customer every week or two for years, so I knew who was involved and how they worked.

But before they placed the order, which was worth over £7m, I got a call in my office. They wanted a 10% discount before placing it.

I politely declined, and we still won the order.

I could say no calmly because I knew where we stood. We had been specified, and we had spent years being genuinely interested in their business.

Know where you stand before you answer

A request for a discount doesn't always mean the order is slipping away. Before you answer, think about what you know. Have you been specified? Do you know everyone involved in the decision? Have you shown them why your offer is the right one? If you can answer yes, you can say no to the discount without worrying about it.

Sell value, not price

If you can offer a benefit your competitors can't match, or haven't explained well, you're in a much stronger position when it comes to price. Often the difference comes from how you operate, such as how quickly you respond when something goes wrong, the technical knowledge of your team and how consistently you deliver.

Have your answer to "Why are you more expensive?" ready before anyone asks it. Write down the benefits your competitors can't match, in the customer's language, so you can explain them calmly when the question comes.

Don't let your price be a surprise

A lot of pressure on price comes from a figure the customer wasn't expecting. Give them an indication early on and see how they react. If the price is going to be a problem, you'll find out while there's still time to talk about it, rather than when the purchase order is about to be raised.

Say no politely

Saying no doesn't mean being difficult. Thank them for asking, remind them what they're getting for the price, and keep the conversation friendly. If you've done the work earlier in the sale, you won't need to give your margin away at the end of it.