Always Present Options
One proven way to increase sales and most certainly gross profit is by presenting options to your prospect in your proposals. Options can be a great way to capture deals that you are missing now. Keep in mind, when a buyer says “No”, often times they are just saying “No” to what you have presented, and in my experience this arises more often than not when only one option is presented by the sales person.
Options give your buyer the ability to compare and in most cases lock in on what they really want and need, then select the package that is most appropriate for solving their problem. I always give a buyer 3 options, the first is what the customer requested the second is a higher priced package, and the third is the lowest priced option.
Providing options does a few things:
- Establishes a Bottom
By presenting a lowest priced option, you establish a bottom. What I mean by that, is by you suggesting a lowest priced option you prevent the custom from making you a ridiculous offer.
- Use Inventory Not, Price To Negotiate
One of the best ways to preserve gross profit in your deals is to move customers to different inventory/packages when they are looking for a discount.
*Remember always move the buyer up in price/package on the offer FIRST then if unsuccessful move to lowest priced option. DO NOT discount until you have moved the buyer through 2 different options
- Increase Revenue in the Deal
I had a customer once that I presented my online sales training platform to. It was the only product that they customer had asked to see or expressed interest in. During the meeting, after I proposed what the buyer requested, I showed him an additional option where I would include live trainers in their business along side my online program. The customer loved the idea and I ended up adding an additional $150,000 to the deal. Never assume your customers have “landed” themselves on the right product, remember, YOU are the professional in your space, not them.
Options open you up for quite a bit of flexibility in your deal when it comes down to negotiations and using options can inject more revenue, prevent unnecessary discounts, prevent your prospect from throwing a lowball offer at you without you first establishing a bottom.
Action Items
- Determine the most common offer that you propose to clients. Once you have done that determine what options/packages you can propose to every client:
Higher Priced Option/Package –
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Lower Price Option/Package –
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2.) When you make a proposal to a customer of what they have interest in, what should you do when they ask for a discount (Don’t forget Tip #2!). How will you transition?
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