Is it worth giving a discount on software and how to do it right



Once, in one of the southern republics of the USSR, a tourist from central Russia went to the bazaar. There he saw an amazing carpet, asked for a price and paid without bargaining. He took the carpet and went to the exit.
- A bargain ?! - shouted after him a discouraged seller. Then he ran after him - Give me my goods, I don’t need your money!

This case clearly shows the collision of two systems of thinking.
If someone does not remember, then in Soviet times prices were written directly on the product, and any change was approved at the level of the Council of Ministers (such stability was at that time). Therefore, the willingness of the buyer to accept the named price (or disagree and leave) is understandable. And besides, he perceived trade itself as a routine process that needed to be completed quickly.

For an eastern seller, trading is not a boring obligation, but an exciting process. The main highlight of which is the dialogue with the buyer. It is a dialogue, and not a monologue like "look at what kind of melon, pure honey." And an essential part of this dialogue is “working with objections.”



“Something your watermelons are immature,” the buyer says.
No, he does not consider watermelons to be bad, this is a ritual introduction.
- My watermelons? - the seller feignedly indignant, - yes these are the best watermelons in this market!
And so, for about twenty minutes, then everyone dispersed satisfied with communication.

In these conditions, the price is simply a kind of initial guideline that weakly correlates with the amount of money that can ultimately be paid.

And now let's see what this beautiful art of trading degenerated into.

Option 1. Egyptian-tourist.



Huge prices are set for cheap products. Suddenly, someone will buy without bargaining ... But those who do not want to waste money can get a huge discount.

Here, price is the seller’s insolence limit, which has little in common with reality.

Option 2. The Russian market.



Our modern pricing perfectly describes the phrase that I myself heard from one saleswoman. In response to my question “how much do apples cost”, she answered “one hundred rubles a kilogram, but if you take it , I will give it in seventy.”

That is, the high price has no connection with reality at all. It is as if called upon to inform the buyer how fortunate that he was not pushing in front of him, but a kind seller who would be happy to lower prices.

What does the buyer see in this situation? That the seller would like to get a lot of money, but he needs to sell the goods so much that he is ready to accept smaller ones.

And in what cases does a product need to be sold for any money? We all know two main reasons - the poor quality of the product and the need for money .

Strictly speaking, there are two more reasons for the discount ...
This spoilage and obsolescence of products (apples rot, and the fashion collection will cease to be new), as well as seasonal sales familiar to customers.
But since in the end we will talk about the software market, these reasons should not be taken into account.

How should the buyer respond? Will he want to buy a product whose quality (indirectly, through a high discount) does not even believe the seller himself. And will he want to buy goods from a seller demonstrating a need?

This is a rhetorical question, you say ... Apparently not for everyone.

Yesterday I opened a competitor’s site. The first screen did not report what kind of product it was, what functionality and capabilities it had.
No, the entire first screen was occupied by two discount offers. One by 25% (and unlimited!), The other as much as 50%.

The first association - WELL PLEASE BUY FROM US, PLEASE AAAALAU !!! The second - it seems that this company urgently needs money.



Let's see what was done wrong and how not to get into a similar situation.

1. Talk about discounts "head-on" on the first page can only a very well-known company whose products are known to all. If the market leader makes a discount, then this can be explained, for example, the low season. And then potential buyers decide to buy until it has risen in price.

2. The discount should not be perpetual. Perpetual discount - this is the price. The constant discount raises questions about the adequacy of the one who came up with the price. The worst option is when prices and discounts are simultaneously raised.

3. If the discount is not given for a certain time period, but according to the result of fulfilling certain conditions, then these conditions should not be easily circumvented. The same competitor offered a discount of 25% to everyone who has time to test and buy in one week. On the one hand, everything is logical - a premium for speed. And on the other hand, it is completely incomprehensible what prevents you from registering for one email, testing for three months, registering for another and getting a discount. As a result, the discount does not motivate and only reduces the seller’s income.

4. The discount must have an explanation. Otherwise, the buyer himself will come up with the answer "we have very bad money, buy at least for some." Better to honestly write that the low season, few sales. This is usually wrapped in beautiful words "while others are resting, you have the opportunity to save."

5. Be careful when offering quantity discounts. Buyers may decide that for you even this amount is the ultimate dream. Competitors, for example, offered a 50% discount on just 50 licenses.

Roman Trachtenberg with his book "Do you want to become a star?" said that if an artist agrees to reduce his fees under the influence of circumstances, then it can be very difficult for him to return to the ranks of highly paid stars.
The same goes for discounts. It’s easy to start cutting prices thoughtlessly - buyers will get used to it and no one will give a real price.

Good luck with your business!

Andrey Ignatov

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