A Discount is a Price Apology. What Are You Sorry For?

There are many times in your life when you need to apologize. Being a married man, I am quite certain of this reality. Sometimes, I admit, I’ve been wrong. Other times, I needed to keep the peace.

But in my work as a sales professional, I never apologize for the price on a property I am trying to sell. But many new home salespeople do just that when they discount the price. And what is a discount if not an apology? “I’m sorry. You’re right. The price on this home is too high for what it offers, so let me concede by knocking off, let’s say, 10 percent.”

This discount also signals to your customer that there could be more room for negotiating the price. If you were willing to reduce the price with just a nudge, how much further would you bend if he pushes harder? A good negotiator leaves nothing on the table. By issuing a price apology, you give up a major advantage to the buyer.

When the negotiation centers on price, you haven’t sufficiently sold the value of the home. Take the price discussion as your trigger to shift into a more focused sales presentation. Promote the home’s exceptional craftsmanship, amenities, and location. Rather than sharpen your pencil and cut the price, reinforce everything that contributed to establishing this price point.

If you aren’t confident in the value of the property, talk to the builder or confer with your colleague so that you can deliver a more influential sales presentation. Never allow yourself to dole out an apology for overpricing a property! Not only do you fail your client—the builder or developer—but you fail the other homeowners in the community. Those people purchased their homes at the price you are asking. By selling other homes less than their purchase price, you compromise the equity that are trying so hard to build.

You can apologize for a lot of things. Being late. Forgetting a special occasion. Insulting your brother-in-law. But never, ever apologize for the price you are asking on a home!

By Myers Barnes

Retrieved 27 November 2012 from http://www.myersbarnes.com/blog/2012/10/a-discount-is-a-price-apology-what-are-you-sorry-for/

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