"Can you reduce your price for us?"
If you're a supplier, you've probably heard this from your clients — especially in today's challenging economy. It’s a common tactic, but how you respond can either weaken or strengthen your business relationships.
Rather than rushing to slash your prices, you can turn this tough situation into a value-based conversation that shows why you’re worth every shilling — and more.
1. Don’t Just Drop the Price
Reducing your price without a conversation sends the wrong message. It tells the buyer that your value is negotiable — even without a deeper discussion.
If a simple email can get you to lower your price, what would happen in a full negotiation? You lose authority and invite more pushback in the future.
2. Show That You Understand Their Challenge
Most suppliers fail here. A price cut request is rarely just about money — it could be about:
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Slowing sales
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A competitor's new offer
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An outdated product
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Or even budget cuts from higher up
🎯 Find out why they’re asking. Will a discount actually help them, or do they need something more strategic — like better delivery, product innovation, or bundling?
Use your knowledge to propose a solution that shows you’re thinking beyond price.
3. Prove You’re Competitive
A price complaint often means the buyer thinks you’re not competitive. But being competitive is about more than price:
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Are you faster?
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More flexible?
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Do you offer support, insights, or after-sales service?
List all the non-price value you bring. Remind the client that you may cost more — but you deliver more too.
4. Show Your Plan to Improve
Don’t be defensive. Be proactive.
Tell the client:
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What you’re doing to become more efficient
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How you’re innovating your products or services
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What improvements you’re making for them
Buyers love suppliers who have a growth plan. It shifts focus from price to long-term value.
5. Be Responsive and Agile
In procurement, speed is value. Can you respond fast? Can you adjust to sudden changes?
Show how your responsiveness saves them money and helps them avoid stockouts, project delays, or customer complaints. Your agility is your edge.
6. Define What “Winning” Looks Like — Together
Your sales targets aren’t the client’s concern. Instead, talk about shared success:
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What do you both want from this partnership?
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What outcomes are you driving toward together?
Set mutual goals. Map out a path forward. This takes the conversation from “cut costs” to “let’s grow together.”
Final Thoughts: Shift the Conversation from Cost to Collaboration
Cost-cutting requests are tough. But they also open the door to deeper dialogue. Use these moments to re-state your value proposition.
✅ Show that you care
✅ Show that you're competitive
✅ Show how you’ll improve
✅ Prove that you're responsive
✅ Define success — for both of you
💡 Kenyan SMEs and suppliers who master value-based selling won't just survive this economy — they'll thrive.
