12 min listen
Why do software (SaaS) companies use discounts as negotiation tools?
Why do software (SaaS) companies use discounts as negotiation tools?
ratings:
Length:
10 minutes
Released:
Aug 13, 2020
Format:
Podcast episode
Description
In this episode, Paul shares why SaaS/software sellers use discounts to negotiate. Show Notes: “Profit margins in this industry are at crack levels. When your margins are this high, it’s easier to give up a little profit. But that’s not the main reason why they’re using discounts.” There are three primary reasons sellers use discounts. Lack of urgency in adopting your solution. Your buyer is already using something that is probably okay. There’s no sense of urgency to move the process forward. The seller also hasn’t created enough pain in the buyer’s world. Dig for root canal type pain. “People only change when the pain of not changing is greater than the pain of changing.” Other times cheap competitors establish anchor prices in the market. Pressure points mitigate the importance of price. Identity their pressure and take the focus off of the price. Free is the worst four-letter F-word you can say in sales. Click here to purchase the latest copy of Value-Added Selling! Thanks to our editing team at The Creative Impostor Studios. Click here to book a complimentary consultation with Andrea to find out how they can partner with you in creating your own podcast. Tell them Paul sent you. *** Our show is updated weekly with the questions you ask. So, please go to the home page, subscribe, share it with your friends, but most importantly, ask the question that you want answered. Thank you for tuning in. Make it a big day.
Released:
Aug 13, 2020
Format:
Podcast episode
Titles in the series (100)
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