Imagine a fashionable boutique nestled into a row of exclusive retail shops. Would a customer stroll into such a store, whisk a pricey boho dress off the rack, sidle up to the counter and ask the hoity toity shop girl: “Can I get like 50% off this gorgeous little number?”
Not a chance!
But if you’re like most small business owners in the professional service realm, you’re awash in cascading tsunami of such requests. So much so the average boutique retailers would lose their collective Salad Nicoise lunches.
For most small business owners it creates a MAKE YOUR HEAD EXPLODE frustration level. You’ve invested untold time and effort into calculating fair pricing. Pricing that accurately reflects the value of your services but doesn’t price your ideal prospects out of the market.
And then some yahoo drops out of the clear blue sky and casually asks for a discount… But you’ve already set a price!? Why can’t he just PAY THE LIST PRICE!?
I started thinking about this uber-frustrating issue after stumbling across a recent Facebook post…
Bob Bly’s Plight
Famed copywriter and successful self-publisher, Bob Bly, often shares his “customer service” gripes on Facebook. In a recent post, Bob described a prospect that approached him about an ebook for sale in his online store. She claimed she couldn’t afford the $40 asking price, and asked Bob if he’d accept $20 instead. Basically, she wanted a 50% discount.
From Bob’s perspective, his price was BEYOND FAIR. He’s invested a lifetime in cultivating the knowledge behind the ebook, not to mention the countless hours he spent researching, writing, editing and packaging the content. Plus, there are his costs for creating and maintaining an online store and merchant payment portal. Moreover, Bob felt, it wouldn’t be fair to other customers that paid full price for the ebook.
In the end, Bob gently and respectfully declined the request. He affirmed the price is the price and suggested the women purchase the ebook when she was more financially stable.
Bob’s rant also got me thinking about similar issues my wife faces in her business…
My Wife’s Discount Dilemma
My wife’s a solopreneur. She offers coaching and counseling services for personal growth and self-improvement. And boy oh boy does she get SWAMPED with discount requests!
To be clear, my wife’s business IS NOT a growth industry. She’s dedicated to helping people heal their lives. And her business model is mostly based on trading her time (which, considering she’s a self-employed working mother, is limited) for cash. Some months she genuinely struggles to cover her minimum basic expenses.
My wife, however, is empathetic to her clients’ circumstances. She understands financial hardships and wants to make every accommodation possible. But should her empathy ultimately put her in peril of poverty?
This is another frustrating quandary small business owners’ grapple with when fielding discount requests.
The Bottom Line: Your Services Have VALUE
You’ve invested incalculable time and effort into cultivating your skills, establishing + marketing your business, and developing your client base (not to mention your struggle to calculate fair pricing). Thus your rule of thumb should be the same as Bob Bly’s: The price is the price.
Of course, you should show your clients a measure of empathy. But exercising empathy in the form of a discount should be the rare exception to the full price rule. Risking your own financial dire straits to help your clients certainly is NOT fair or equitable. Because rest assured, your clients would NOT do the same for you.
What Are Some of Your Wackiest Discount Requests?
We’ve all had ‘em, right? The crazy boob who makes you think: “I can’t believe you had the gumption to ask me this!?” Swing by my Google+ page and share your most ridiculous discount requests.
