“I’d buy from you, but your price is too high. If you give me a discount, I’ll buy.” Far too many salespeople hear this line or a variation of it. In fact, many salespeople have come to expect that they’re going to get pushback of this sort.

One of the best ways to eliminate this problem is by making sure you’re only dealing with prospects who understand the price-value relationship of what you’re selling. Yes, that’s much easier said than done. Salespeople by nature are driven by the belief they can sell to anybody.

Salespeople are also not known to discriminate in developing leads. For a lot of salespeople, the only criteria they use is that the prospect is breathing. If they are breathing, then they’re a lead. That right there is an issue. Not all prospects are good prospects, and some prospects should not even be referred to as a "prospect." If you want to avoid discounting, then start with getting better prospects. Don’t merely accept that every “prospect” is viable. 

Developing Your Criteria

Use the prospecting phase to discern who fits your “full price” criteria. Start by listening to what the customer is telling you. If you’re hearing comments regarding low price, that should be cause for concern.  Obviously, not all prospects are going to be that open about their feelings on price. The prospect may not believe their definition of a low price is different than your definition of a low price.

An example I like to use is Starbucks and the price they charge for coffee. I’m a frequent visitor of Starbucks and I don’t see anything wrong with the prices they charge. Conversely, there are people I know who refuse to visit Starbucks because they feel the prices are too high. What is interesting is in a normal conversation with them, their feelings regarding price would never emerge. The only way they do is if I ask them.

Asking the Right Questions

Translate this to the prospecting phase and it means you have to be asking questions early to determine the prospect’s attitude towards price. The easiest way to do this is by asking two distinct questions. First, ask a question about how they go about buying something else. What is the process they use in deciding what to buy? What you’re listening for is whether they bring up “price” or “low price” early in this discussion. This is a clear indicator that they are likely a price-focused buyer. Second, ask them something that gets them to share their sense of value and price for what you’re selling. Again, what you’re listening for is whether they make a big deal about low price.  

With both of these types of questions, you don’t necessarily rule the prospect out if they bring up price, but you do put up a giant yellow caution flag. The complete disqualifier is if the prospect fails to reveal to you a significant need or pain they have and a sense of urgency to deal with this need or pain. Time is huge. A prospect with a problem and limited time to solve it is certainly not going to be price sensitive. The beauty of using the questioning techniques shared above is you will be able to define early in the process where the customer stands on price. Understanding early if the prospect is low price oriented will allow you to discern which prospects really warrant your further attention.

Avoiding the High Maintenance 

Something else to keep in mind is that a prospect who is low-price oriented also tends to be high maintenance with regard to the level of service they expect on everything. The last thing you want to do is find yourself struggling to close, only to give in at the last minute and agree to their demand for a discount. The real pain then begins, because that customer will continue to harp on everything, eventually putting more stress on you and other departments in your company. This ultimately costs your company time and money.

The best thing you can do with a prospect who is oriented toward low price is refer them to your competitor. Wouldn’t you rather have the prospect wasting your competitor’s time than wasting yours?

Mark Hunter, “The Sales Hunter,” is author of High-Profit Selling: Win the Sale Without Compromising on Price. He is a sales expert who speaks to thousands each year on how to increase their sales profitability. He was named one of the Top 50 Influencers in Sales by Top Sales World.  To receive a free weekly sales tip and read his Sales Motivation Blog, visit www.TheSalesHunter.com. You can also follow him on Twitter, on Facebook and on Linkedin.

Download the ebook How to Set Your Sales Prices to learn more tips on increasing your value proposition and avoiding discounting.