A customer walked into my showroom and after discussions spoke
to me over the phone.
He identified himself as an old customer of ours and having purchased
a few air-conditioners some years back.
Business climate being what it is, our pricing structure is pathetic with
margin of less than Rs.500 on a machine, so that customers do not run away the moment the price is mentioned!! This unfortunately leaves no scope for reduction or bargaining by customer.
For quite some time he was insisting on some discount. Finally I reduced the price by Rs.200.
A few days later he came back to finalise the deal. He met my friend and wanted further reduction!!
Now we come to the most difficult part. We could have said "No" because anyway there is hardly any margin worth mentioning in the deal.
My friend asked me that the customer wanted a further reduction of Rs.300 to close the deal and what was my advise.
I just told him to go ahead and close the deal at Rs.500 less.
No margin, but a sale has been made, a customer has been retained!!
At times we have to do such things, let us not grudge about it!!