Nobody believes that you have low prices. After all, every company says that they do, but we have heard it so many times over the years that we no longer believe it.
The sad fact of the matter is that no matter what you charge, most customers are still going to think it is pretty expensive when you finally hand them the bill. After all, most people are not putting away their pennies and anxiously counting the days until they can afford a new system. Our customers just need their equipment to work and keep on working. Anything that interferes with that is both a hassle and a monetary drain. So, even if you do have the lowest prices in town (and we'll talk another time about why you shouldn't), the customer generally won't care. Indeed, if we are doing our job right, they will not even talk to another company, so they won't be able to compare your prices with any others.
This is where discounts come in. Discounts are a great way to show a customer that you care about them. You first show them the normal price to set their expectations, then add a discount to the invoice to show them what you can do for them because they are special - and everyone likes feeling special.
Let's take a look at a typical scenario where a technician is encouraging a customer to purchase a service agreement by giving them a labor discount on the work they need done if they buy it today. It is important to understand that discounts apply to all items that appear above them on the invoice, so where you place them matters.
In this situation, the first thing the technician will add to the mobile invoice will be the proposed labor. He can modify the description of this line to show the customer what he is going to do and update their history record at the same time.
Next, he will add the discount code and change the description to tell the customer why they are getting it. After that has been completed, he can add the rest of the parts and include the price of the agreement at the bottom. Notice that this does not change the amount of the discount since these items are added after the discount item.
Now tap Authorization to present the results to the customer. This will show the customer the price for everything, including the agreement.
This is a great way to assume the sale because it instantly shows the customer how much they can save by purchasing the agreement today.
If the technician is unable to sell the agreement at this point, he can tap the discount line item and agreement line item to remove from the bill. These items will still flow to the customer's history record, so you will always be able to see what you offered them - even if they turn it down.
You can use this concept for just about any group of people you want to give a discount to (AARP members, veterans, long time customers, etc.). Don't just give them a low price, show them what you're doing for them. You'll get a lot more out of it.
Written by Eric Rausin
Featured in October 2013