To Discount Or Not To Discount?????
Business By SomethingSweetByFlo Updated 11 Dec 2011 , 2:31pm by costumeczar
Hi!!
I'm sure this has probably been posted before in the past, but I'm kind of on the fence about this issue.
I offer somethings (small priced items) for free depending on how large an order is. But, I sometimes get clients that want price reductions even on small orders.
What's the best way to handling these clients?? My prices are very reasonable to begin with, and going any lower would definitely be under pricing my products. Then they become the high maintenance clients on top of that!
I'm frustrated!!
Thanks everyone or anyone for your feed back!!
Happy baking!
You simply reiterate your prices as offered. If the customer does not want to pay the asking price, they can either get something smaller or simpler for a lower price, or they can buy from somewhere else.
I have found unfortunately with most people, whether it's them and repeat business afterwards, or someone they've referred to you, that if you give an inch, they'll try to take a mile. And why wouldn't they try? It's human nature.
"Oh Hi, Mary Jo! What's that? You're looking for a cake? I've got JUST the gal! Call Sally Sue. Listen, she'll TELL you that her cakes cost blah-blah-blah, but if you just ask her for a discount, she'll drop the price for you. She always does that with me. Yeah! No problem! Bye!"
That's NOT the message you want to send.
I offer certain rates for certain people only and those are the ones that supported me when I didn't really have much going on and was struggling to make it.
It's two families, and I only charge them for the supplies because they've used me for weddings, birthday's, baby showers, etc. Everyone else is regular price unless they are using a special promotion, which I do periodically.
Stick to your prices. Have a few quick remarks ready like "If I drop my prices I won't be in business next week. These are my prices." or "This is a bakery, not a Maserati dealership. I don't make thousands on a cupcake."
BTW - the next couple of times this happens, carefully observe the person doing it - jewelry, purse, car, clothes. Most of these people are shrewd business people with more money than you.
Charge a fair price and don't discount. Or charge exorbitant prices and discount all of the time!
Cake Forte.... Charge them something!!!!!! If you were making my cakes for only supply cost, I would order everything from you to. How is that helping you? Support or no support, charge for more than supplies. At the end of the day if you don't value your time, who will? Working on a cake is very time consuming and it only take minutes to buy supplies. I would hate to complete a cake, and have worked all day knowing I would not get anything for baking it, putting it together, decorating it, boxing it up and delivering it. Be in the business of cakes, not volunteer work. You can never get back time!!!!!. When you give a price, I would tell them ahead of time, that it includes a discount, that way, when you turn them down for additional discounts, they may handle it better.
Stick with your prices...People figure that it doesn't hurt to ask, so most people won't care if you don't give them a discount. Or if they do you can tell them that you've been considering raising your prices, so they'd better get it at the price you quoted before it goes up!
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