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•Five Greatest Ways of Getting the Order 47
they do not realise what it does to the bottom line. Here’s an example of this from
the insurance business.
Ruining sales by discounting commissions
The original commission rate is 20%
Premium £1000
Cost of insurance £800
Gross margin £200
Expenses £50
Net profit £150
Under pressure the salesperson discounts the premium by 10%
Premium £900
Cost of insurance £800
Gross margin £100
Expenses £50
Net profit £50
A 10% reduction in the premium is a 66% reduction in the bottom line
No, the correct way to handle a price objection is to use the trial close. It goes
like this:
‘If we were the same price would you prefer our proposal?’
What is the client to say? Suppose they say ‘Well no actually,’ seemingly the
worst outcome, at least you can now ask ‘Why?’ and deal with the other objections,
real or imagined. Suppose they say ‘Well, yes I think we would.’ At that point the
same question ‘Why?’ will elicit what the client believes are your advantages as op-
