This article was written by WeddingPro Educator Alan Berg, CSP.
I was recently at a WeddingPro Networking Night where I spoke about how to handle price questions. As part of the presentation, I said that asking for a lower price is one of the biggest buying signals you can hear. After all, who asks for a discount on something they don’t want to buy? People ask for a discount after they’ve determined that you’ve met enough of their other needs and wants that they’d like to buy from you. Yes, they’re going to ask how much you charge (they can’t buy without knowing that), and then some of them will ask for a discount, and I’m fine with that.
Never get offended when someone asks for a discount
Unless you’ve never asked for a discount on anything, anywhere – which is highly unlikely, don’t be offended when you’re asked for a discount. Have you ever asked for a discount, didn’t get one and you bought anyway? I’m sure you have. If your customers are only buying when you give them a discount, then you’re not selling your services, you’re selling the discount, and you have no price integrity. Many of your customers will still buy if you don’t give them a discount. If you’ve done a good job of selling why they should buy from you, and only you, then they have to pay your price. After all, they can’t get you, and your team anywhere else, at any price.
On the other hand, if they want ‘what’ you do, but they don’t need to get it from you, there’s always someone who sells it cheaper. As a matter of fact, when you were new in business, it was probably you that was the offering the cheaper price. I can’t think of anyone I know who started their business with the highest price in their market and category. If your customers can’t perceive any difference between buying from you, versus a cheaper competitor, then the lower price will win. Whether tangible or intangible, you need to make them feel like you’re the only one who can fulfill their needs and wants.
Can you negotiate without lowering your price?
At the networking night, a local DJ was telling me about how he was handling requests for discounts. Rather than lowering his price, he was offering to divide the total into 3 or 4 payments. I know other wedding professionals who are offering even more payments, sometimes dividing the total by the number of months until the wedding. When you do this you’re still negotiating, but you’re not lowering your price. When someone asks for a discount, and you find a way to give them something, even if it’s not a discount, they still feel like you’re working with them, as opposed to just saying, no.
Every dollar you discount is profit you give away
Remember that it costs you exactly the same to do their wedding or event, unless you take away some products or services. So, every dollar you lower your price, without getting anything of value in return, is profit you’re giving away. That’s why I prefer to give added value, instead of a discount. I once read a study that said, when given the choice between getting 1/3 off, or 1/3 more in added value, more people would choose the added value. That makes sense, especially in our digital currency world. Getting a discount feels good, for the moment, but you didn’t get any more than you were already going to buy, the number in your banking app is just a little higher than it would have been without the discount. On the other hand, getting added value means you paid the same, but you have something else that you weren’t going to pay for – more products, more services, additional time, etc. For example, if a photographer gives a couple a parent album with a value of $300, that costs her $100, the couple gets to give that album to their parents without paying extra for it (both tangible and intangible benefits), and the photographer keeps the integrity of her price. On the other hand, had she discounted her price by $300, she would have lost $300 in profit.
Most people like to get free stuff (although added value isn’t really free, because they have to buy something to get it). Celebrities love their swag bags at awards ceremonies, yet they can afford everything in them. I go to lots of trade shows, and I see people seeking out the best swag. I was recently speaking at a destination wedding planners conference in Mexico, and there was so much swag I had to buy a suitcase to get it home. It was my first time to that particular conference, but others told me that was one of the reasons they go. That swag isn’t free, it’s an added value of attending the conference. They bought their tickets, but the swag is one more reason to attend.
Finding a “yes”
No one likes to hear “NO,” but there are times when you can’t give them what they are asking for. Find a way to give them a yes. I read a great quote from Micah Solomon on the Forbes website: “The answer is Yes. Now, what’s the question?” What a great sentiment, starting with an attitude of wanting to say yes, every time. If you remember that asking for a discount is a very strong buying signal, then finding a way to give some concession, even a small one, will make them feel that they’ve been heard. If you’re willing to give them a discount, be sure to get something back in return: a larger deposit, higher minimum guest count, etc. If you lower your price, without getting anything back from them in return, then you’re negotiating against yourself.
Saying no, with a smile
If you don’t want to lower your price, then how can you say no, without antagonizing them. It’s all about how you say no. Don’t sound offended. They’ve just given you a buying signal, this is no time to tick them off. You might say something like this (with a smile): “Thanks for asking, I know how things can add up quickly for a wedding. After all, we do this all the time. For the particular products/services you want, and for us to have the best team to deliver them for you, the price I gave you is the best we can do to ensure the outcome you want. Would you like me to reserve your date now?” – Ask for the sale! They’ve given you a huge buying signal, so ask for the sale. One of the biggest mistakes I see salespeople make is not asking for the sale when they see/hear buying signals. So, the next time someone asks you for a discount, have the confidence to know that if they weren’t interested they wouldn’t have asked. Don’t wait for your customers to volunteer that they want to buy. Help them buy.
WeddingPro Education Guru Alan Berg, CSP has over 20 years experience in wedding related sales and marketing, and is an author, business consultant, a member of the National Speakers Association, and the wedding & event industry’s only Certified Speaking Professional®. Learn more at alanberg.com.