That's exactly what I'm worried about....people asking for discounts all the time. I get so mad right off the bat that I need some "cool" answers. I love your response (and Debi's rebuttal).
to add: a co-worker asked me to do a dress shirt cake for her father's birthday. It's about the size of a 1/4 sheet. She called the grocery store and found out they charge $25 for a 1/4 sheet decorated with roses. She called me and said since they charge $25, she's willing to pay me $30 since I'll do "custom" work. I mean $5.00 extra???!!!
Willing?? Oh that would make me cut her off right there. What, like she's doing you a favor? Cheap ass jerks.
Maybe I'm wrong in doing this, but I'm still doing this part time and trying to build a following. So far, it's been entirely word of mouth. I give my price for my cake. But then I let the people know that any referral that comes as a result of their cake, I will give them 10% of their next cake based on the price the referal paid. I know, I didn't word it well. Say customer A buys a cake, and their guest is referred to me. They are customer B. Now customer B spends $150 for a cake. So I take 10% of that amount, or $15, and it becomes a credit toward customer A's next purchase. If they send me enough referrals, they could end up getting a cake for free. Only one person actually took their discount so far, the others have given us the full amount of what the order should have been, telling us they simply want us to have the money.
If things get going much more than they are now, I'll have to keep a file on the computer, which should be easy to keep up with. But so far, it's been working ok. I think people have been more surprised when they order and I remind them they have a credit toward their new cake.
That's exactly what I'm worried about....people asking for discounts all the time. I get so mad right off the bat that I need some "cool" answers. I love your response (and Debi's rebuttal).
to add: a co-worker asked me to do a dress shirt cake for her father's birthday. It's about the size of a 1/4 sheet. She called the grocery store and found out they charge $25 for a 1/4 sheet decorated with roses. She called me and said since they charge $25, she's willing to pay me $30 since I'll do "custom" work. I mean $5.00 extra???!!!
Willing?? Oh that would make me cut her off right there. What, like she's doing you a favor? Cheap ass jerks.
I think that people feel like they're doing you a favor when they order from you instead of going to the big-box stores. WRONG!!!
Charm City cakes lists their minimum order amount of $1000 on their website. I think when I start selling, and get the cheap mentality from clients, I will remind them that they want a cake like Duff's (not that I'm there yet) but want walmart prices. So they can refer to his website to see what I 'should' be charging. Therefore I'm already giving them a discount. 
I think that people feel like they're doing you a favor when they order from you instead of going to the big-box stores. WRONG!!![/quote]
Yes, that's what they must be thinking. Everyone thinks they are SO connected that their circle of friends will be valuable to us. I've seen so many posts on here that warn not to give discounts at all - it never ends up as a big sales lead.
The dummy (my husband) even had the nerve to say I should take $25.00 off the cake and he'll just give me the extra $25.00
What an idiot...doesn't he know that his money is my money so in the end we would still be losing out $25.00. I love him but sometimes I could just hurt him 
My hubby did that once when I considered buying a new phone. A cust svc rep had told my husband that we had a $150 discount on file. Great! Let's go! So I picked out a phone that was $300, marked down to $150, which with my credit on file would give me a free phone. She does the transfer from my old phone to the new one and tells me "$175 please". I said, "You forgot to deduct the $150."
Oh no. Turns out we did NOT have a credit "on file". The store was having a $150 off all of their phones sale! The phone was $300 less the $150 in store sale discount. Period. I was PISSED!!!!!!!!!!!!!!!!!! I was pissed that I had been lied to by the cust svc rep who made me believe we had an overpayment or something on our file. I was pissed that they DARED to imply this crummy little phone was worth $300 and they were GRACIOUSLY going to GIVE it away for a lousy $150.
I said, "I am NOT paying $150 for a phone that you give away free all the time." And I made her switch everything back.
Hubby was standing there with his "oh my god I'm so embarrassed that she's standing up for herself again" look on his face. (He's the type who would hand over the money rather than cause a scene. I'm not the inhibited type! 
)
He says, "Debi what if *I* give you the money?" I said "It's still OUR money and I am NOT paying that much money for what is usually a free phone!"
He doesnt' like to go shopping with me for some reason! 
That sounds unbelievably like a pain in the butt to track cowns.
Not really. I've been doing referral credit for 30 years.
Anne sends Betty to me.
Betty spends $3000.
Anne earns 5%, or $150, toward her own purchase.
Since I keep electronic files on everything, on the master order form is a space for "Referred by". I email Anne and tell her "You have $150 credit on file with us." So when Anne comes in for her credit, I just look up Betty's order and see what the referral is.
I don't even really keep track of it. If they use it, fine. If they don't, fine.
But a free cake is not a bad thing. I love telling the story of the bride who got a free $600 wedding cake. She sent me 3 friends who booked with me. While $600 sounds like a lot, remember (1) my out of pocket costs were WAY under $600 and (2) to earn $600 in free product, that means she sent me 12 THOUSAND dollars worth of business. Worth it? You bet your patooty it is! 
That sounds unbelievably like a pain in the butt to track cowns.
Not really. I've been doing referral credit for 30 years.
Anne sends Betty to me.
Betty spends $3000.
Anne earns 5%, or $150, toward her own purchase.
Since I keep electronic files on everything, on the master order form is a space for "Referred by". I email Anne and tell her "You have $150 credit on file with us." So when Anne comes in for her credit, I just look up Betty's order and see what the referral is.
I don't even really keep track of it. If they use it, fine. If they don't, fine.
But a free cake is not a bad thing. I love telling the story of the bride who got a free $600 wedding cake. She sent me 3 friends who booked with me. While $600 sounds like a lot, remember (1) my out of pocket costs were WAY under $600 and (2) to earn $600 in free product, that means she sent me 12 THOUSAND dollars worth of business. Worth it? You bet your patooty it is!
Whew, I really am glad you posted this. I thought for sure I'd really hear it for doing this, even though it's worked for me. Thanks for the endorsement.
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