The Sales Vault

Don’t cave on price

Have you ever cancelled a service with a company only to find they miraculously have a lower price to offer? Bill Farquharson’s recent experience with this issue lead him to this good advice found in this week’s Short Attention Span Sales Tip.

Click on the image below to play the video.

dont cave on price

Good morning!

In 2008, I heard someone give a presentation about email marketing. The woman was an executive from a Boston-based company called Constant Contact. Since then, I have sent easily hundreds of thousands of emails using this service.

But, no more.

In a shift directed and suggested by my daughter/marketing department, we are going all-in on LinkedIn. Moving forward, my Monday Short Attention Span Sales Tips, blog, and other sales content will be distributed using that social media platform.

Buh-bye Constant Contact!

So, I called and cancelled and, lo and behold, they offered me a 33% discount if I stayed. This approach was familiar to me.

I used to play a game every year with those two companies. Because I knew they would fold like a cheap tent if I canceled, I would call and ask for the cancellation department whenever the term of my service plan expired. There, someone would greet me, thank me for my business, and immediately offer some ridiculously discounted price in order to keep me in the fold.

Year after year, it worked.

One year, however, when I called the Wall Street Journal, they simply canceled me without a counter offer. I was shocked and asked the Agent why that was. He replied something like, “We believe we are worth every dollar and have decided not to discount our price when people decide to quit. In short, we’re not playing that game anymore.“

Wait, what?

XM Radio, on the other hand, did their usual, “Oh, I just found this discount you can take advantage of…“ BS and I stayed with them.

As a 14 year customer, I have obviously received great value from Constant Contact. It’s not always been perfect and their gratuitous, “Change for the sake of change” adjustments they made to their website were frustrating and so I was expecting them to remind me of that instead of doing what they did and immediately offer a 33% discount.

The Wall Street Journal raises prices every year and yet I have not called them back looking for the cancellation discount since they stood their ground. I agree: They are worth the price.

Are you picking up what I’m putting down here?

You always have the option of lowering your price, however, it should be your last resort, not your knee-jerk reaction. Make an effort to substantiate the cost you have put out there. Even if it’s just one, “Here’s why you want to do business with me“ response, you have a chance of walking away with that additional profit.

To do otherwise set a precedent you will regret.

The Sales Vault is a subscription-based website for sales people and selling owners throughout the graphic arts. Visit SalesVault.pro for more info or call Bill Farquharson at 781-934-7036

Search this site

Subscribe Now

Follow Bill on LinkedIn and subscribe to the Short Attention Span Sales Newsletter to get these tips delivered straight to your inbox!

Join the sales vault

Join with your sales team and save! Association Members & Franchise Owners may qualify for a discount. View Partners→

Contact Bill

What The Sales Vault Community is Saying

5/5
5/5
5/5
5/5
5/5
5/5

Trusted by Leading Brands & Associations

Join the top companies and industry groups that rely on The Sales Vault to elevate their sales performance.

Get Started today!

Simple, Flexible Memberships

Get unlimited access to our entire library, live workshops, and AI training—without breaking the bank.

Scroll to Top

Get Bill's Weekly Tips Delivered to Your Inbox

Sales tips are released every Monday morning.  As always get Bill’s Free Weekly Sales Tip at SalesVault.pro. Bookmark the page: This Week’s Tip

Looking for a notification by email? Connect with Bill Farquharson on LinkedIn and Subscribe to his Weekly Newsletter.

Get notified via LinkedIn

Please note, you will need to join LinkedIn to connect with Bill and subscribe.