Discount Dilemma - Please Give Me Your Advice Asap

Business By cakesbycathy Updated 21 May 2008 , 5:13pm by cakesbycathy

cakesbycathy Posted 20 May 2008 , 12:14am
post #1 of 12

I am unsure what to do in this situation and your advice would be appreciated.
A little background: my 5 year old twin boys and 3 year old daughter are all in the same preschool class (it is a multi age classroom for 3,4 and 5 year olds). When I was searching for a preschool to send the kids, I inquired about a multiple child discount. Almost no one offered one. When we looked at this school, not only did I love the program, but when I asked about a discount, the director said that if I signed up the boys then my daughter could attend for free! Needless to say, I registered them immediately icon_smile.gif We have had a wonderful school year. My DD will be returning in the fall (the boys will be in kindergarten).

One of the teachers is expecting a baby and her mom (the director of the school) has asked me to make the cake and cookies for her baby shower. She is asking for a cake to feed 50 and 2 dozen cookies. I charge $2.25 per serving and $3 per cookie. That brings her total to $184.50

Normally I give anyone from the school (parents or teachers) who orders from me a 10% Preschool discount. But in this case, given that my daughter has attended for free (normally it is $115 per month), a 10% discount just doesn't seem enough.

What do you think would be a fair discount?

11 replies
johnson6ofus Posted 20 May 2008 , 12:29am
post #2 of 12

I would think that depends if your discount is "standard". Many schools offer that type (multiple child) of discount, and if that is "standard", I would say the 10% you offer to the school is fine.

If your daughter's discount was something special just for you, I would do it for as low as costs (depending on your own financial need). Or anywhere in between.

A discount is a "gift", and it is up to you. I think you are generous to be considering it!

cakesbycathy Posted 20 May 2008 , 12:54am
post #3 of 12

It was definitely not a standard preschool discount. It was something special just for our family.

I thought about doing it for cost, also, but feel like that's too much of a discount.

Any other opinions? Thanks!

leah_s Posted 20 May 2008 , 2:49am
post #4 of 12

Frankly, I'd probably do it for free. The school is giving you a tremendous gift with free preschool valued at $115 per month.

SweetArt Posted 20 May 2008 , 4:14am
post #5 of 12

I too would do it for free. But if that seems too much, 50% off would still be great and I'm sure they be very pleased with that.

Curtsmin24 Posted 20 May 2008 , 4:35am
post #6 of 12

I would do it for free, too. but make sure that you tell her it is a one time deal due to her being so sweet and scratching your back, so that she doesn't think you will do it all the time. Or just charge for the cookies because they are a little more time consuming. Go with your heart, you will be fine. Good luck in what you decide to do. icon_smile.gif

denette Posted 20 May 2008 , 4:44am
post #7 of 12

I would invoice her what you normally would charge, but then show a large discount (more than normal) with a note stating that you appreciate the discount you were given at the preschool. This way, when she orders from you again, she knows that she will not get the same "deal", but will need to pay full price.

I personally would do it for as close to cost as you can afford. IMO, she gave you a very large gift, now you have the same opportunity. Again, in my opinion, (I'm not a business owner) a beautiful cake is not always about the money, but an opportunity to give back or pay it forward. With that being said, go as low as you can without feeling taken advantage of.

Good Luck

Mike1394 Posted 20 May 2008 , 9:20am
post #8 of 12

Free with the mention of if anyone inquires about where they got them they mention you, and if price is asked they give the regular price.


apclassicwed Posted 20 May 2008 , 12:00pm
post #9 of 12

Free, especially since the school gave you an extremely generous gift of free tuition for your DD! Give an invoice showing what the order would normally cost and mark it "PAID IN FULL ". This is a good opportunity for you to show your appreciation for their generosity and show off your talents (which may lead to more orders)


GI Posted 20 May 2008 , 3:17pm
post #10 of 12

If the cost of your daughter's tuition affected the teacher's profit or salary, then the treats could be given as a gift. However, if it is the Director's profit that your daughter's tuition has affected, then I would give the standard percentage off that you have given for the others.

You might end up doing ALL of their orders for free.


edited: sorry, just re-read your post. Since it is the Director's daughter, then I would do it as (1) gift especially for the school. But be specific as it is in Thank You for daughter's tuition. Otherwise, you STILL might be asked to do Freebies in the future!

costumeczar Posted 20 May 2008 , 5:40pm
post #11 of 12

I personally would do it for free, but if you can't afford it you could do it for cost. The amount they've given you off of tuition more than makes up for it.

I was in a similar situation with my kids' karate school. They've both been going there for 6 years, and when my daughter started the head instructor gave me all kinds of discounts becasue we'd been there with my son for a couple of years already. When he needed a birthday cake for his fiance (who's also an instructor there) I did it for free for him.

I'd say do it for as close to free as you can afford, but the advice on telling her why you're doing it for a huge discount that previous posters have suggested is all good, too.

cakesbycathy Posted 21 May 2008 , 5:13pm
post #12 of 12

I gave her a 50% discount.

On the invoice I had the full price and then the next line listed her price, with a note that it was a 50% "Thank you" discount.

I just cannot afford to do it for free. I also have sent in lots of treats throughout the school year and last Monday did a cake for her school baby shower for less than cost.

DH's opinion was that 50% was very fair and that I am running a business. He is a real estate investor and he helps families get into houses who cannot get traditional financing right now. His example was this: one of his tenants is a mechanic and DH's car needed a new timing belt. The guy did the work and gave DH a 10% discount on his labor. It never occured to either DH or the tenant that the work on the car should be free or just the cost of parts just because DH is helping the family with a place to live. They both have a business to run and helping each other out is great, but you also have to set limits.

At any rate, I am sure if she doesn't feel like the price is fair, she will just cancel the order, no big deal. Now I'm off to find pics for ideas...she is having a girl and the colors are pink and brown.

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