# Customers asking for discounts -- need to vent



## DeeAnna (Dec 17, 2019)

I need to talk about something I find especially frustrating as the owner of a small business. I'd love it if y'all would just go "_um hum_..." and nod your heads from time to time as I vent.  After sending this message, I plan to go back to my job with a better attitude and a clearer head, having got this off my chest.

The background --

I run a small business making home decor and gift items (not B&B or soap, but it is definitely a craft-based business). I employ one other person full time, and my husband also helps out on an unpaid, irregular basis. I am careful to price my products so prices are fair to my customers yet fair to me too.  My goal after almost 20 years of being in business is to pay the bills, purchase decent quality materials, pay my employee and me fair living wages, and remain out of debt.

In each of the past few years, including this year, I have only had a small amount of money in the bank at the leanest time of the year. That's a somewhat financially precarious place to be, because a machinery breakdown or other unexpected problem can wipe out that savings in a heartbeat. But at least it's money in the account, rather than going into debt. I just hold my breath and hope we scoot through okay.

On to my point, now that I've set the stage --

I occasionally get customers who want to know if I will give them a discount for a larger dollar purchase or a bulk purchase of multiple items. I've had two inquiries like this in recent weeks.

I can appreciate that "it never hurts to ask" from the customer's point of view. For that reason, my policy is to simply answer the question with a factual reply -- _no, I do not offer discounts_ -- and leave it at that.

But I want to say so much more about what it takes to run a small biz, whatever that business may be -- B&B, soap, my biz, farming, local bookstore, etc., etc. About how many of our little businesses exist just one misfortune away from insolvency. About how it's borderline insulting to ask me for a discount on a handcrafted, made-to-order item rather than get the same mass produced shlock that everyone else gets.

I never see customers in Walmart or the grocery store asking for a discount. Why ask me for one?

Do customers think small biz owners are so "hungry" for business that they will give a discount to get the sale, even if that's a risky strategy in the long run if not carefully thought out? Do they realize that to offer discount to one person, I need to offer the same discount for every order that qualifies? And if I do that, I also have to raise prices for _all _customers to cover the loss of income from giving discounts to a few?

Here's the latest inquiry (edited to preserve my customer's anonymity) to give you some sense of how people justify asking this kind of question --

"..._I already own two of your [$80 products] and one of your [$68 products].... I would like to order four of your [$53 products] and four of your [$75 products].... I was just wondering if I could get any discount on an order of this size_..."

To summarize, this person bought $228 of products 5 years ago. She proposes to order another $512 of merchandise. A $512 order is on the high side of the normal range for retail orders, but not outrageously so. What I _want _to say to this customer is this --

"..._I would love to have you again as a customer, but I regret to say I do not offer a discount for retail purchases of larger dollar amounts or for quantity buys. If I offer a discount to you, in all fairness I have to be willing to offer a discount to all. If I do that, I will have to raise my retail prices across the board to compensate. 

"I'm sure you've seen businesses that are constantly having 25% off sales. They set their regular prices sufficiently high that the "sale" price is actually a fair retail price. In the long run, this strategy penalizes everyone and it's not a strategy I think is a good one for my business_...."

What I _will _say is simply this --

"..._I would love to have you again as a customer, but I regret to say I do not offer a discount for retail purchases of larger dollar amounts or for quantity buys....."_

Thanks for listening.


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## atiz (Dec 17, 2019)

Um hum....

To be fair, I think a lot of people don't really know, or never have thought about, how small businesses work (I have not really either, TBH). So they (we) don't quite know what kind of a margin you would work with, or whether it would be worth to sell a lot of product a little bit cheaper. I get it that it's not -- but I would not have known it in advance. (Even if personally I would not have asked for a discount.)

Because of this, I think I would actually find your first quoted paragraph somewhat illuminating in its whole, and not just its 2-line version. (I would not include paragraph 2 although I would have no strong objection to it either.)


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## soapmaker (Dec 17, 2019)

DeeAnna, I so totally understand! I just had one this morning and all she bought was 5 bars of soap. Yes, $25 at our house! I think what you really wanted to say is what you should say. Like Atiz said it's an education. My husband is a quality woodworker of small household items, generally priced between $20 and $100. He would never say this but he read in a Fine Woodworking magazine that one man said, "Yes, if you are willing to take an hourly wage cut at your place of employment, I will give you a discount!"


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## dixiedragon (Dec 17, 2019)

Perhaps offer a price break at a quantity that you feel comfortable with? Such as groups of 10 or 15. I can see how it's annoying to you, but I also think it's very typical for most products to be cheaper when you buy more. It's cheaper for me (per oz) to buy the 50 lb bag of dogfood vs the 25 bag. It's cheaper to buy a whole pizza vs pizza by the slice, and a pizza is handcrafted (if you're buying at a restaurant).


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## amd (Dec 17, 2019)

Um hum! 

My husband gets this quite a bit with his welded decor "business". About two years ago he stopped making stock items and only does custom. He is in a bit different situation because he doesn't intend to make a wage from it and does it just for the sheer joy of doing it (true hobbyist), so his items are modestly priced to cover materials, his sales tax, and give him a bit of profit (typically 5-10% depending on how custom the item is, if he has to design it himself it's 10%, but if they send him a photo of something existing it's 5%). Anyways, he often gets this when people are ordering several items from him and it frustrates the begeezus out of. He typically hands those people off to me to deal with. (Thanks, Babe.) So my response is pretty similar to yours: _Thanks for your interest in purchasing several items, I look forward to making them for you. I appreciate you asking, but at this time I don't offer discounts for multiple items as each item is custom made just for you. With that in mind, I do price each item modestly based on current costs.
_
I used to reply asking if they would like a lower cost if they could source the materials themselves... but it wound up coming across as rude. One lady did it, but she brought in this crap material that couldn't be welded... that was fun... so hubby said "don't do that anymore". Oops.

Keep on keepin on, my dear. All of us SBO are with ya.


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## Misschief (Dec 17, 2019)

It isn't just small business. I work in a print shop that has 9 employees in total. We regularly have customers tell us that they've been customers for YEARS and could they please have a volume discount, only to discover that in the 36 years we've been open, they've placed 2 or 3 smallish orders. Yeah, no, you don't get a discount. And don't get me started on the charities that almost expect you to print their orders for free or for a much reduced price and an ad in their print material; you might be a charity but we are not.


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## DeeAnna (Dec 17, 2019)

Thanks, everyone, for your thoughts, stories and suggestions!

"..._Thanks for your interest in purchasing several items, I look forward to making them for you. I appreciate you asking, but at this time I don't offer discounts for multiple items as each item is custom made just for you. With that in mind, I do price each item modestly based on current costs...."
_
I really like this, @amd. Thank you very much for sharing. I may tweak this general idea to fit my own situation.

I'm not utterly opposed to discounts, if it makes sense to use them. For example, I offer a small discount to  my wholesale customers for orders over a minimum dollar amount. This discount encourages my wholesale customers to place decently large orders and to to (hopefully) come back to place more orders in the future. Many of our wholesale clients _are _pretty loyal -- some have ordered from us for over a decade.

On the other hand, the vast majority of my retail sales are one-time transactions.  My products are little luxuries and gift-y things -- they aren't consumable necessities of life like soap or groceries. I want to treat my retail customers right and do a good job for them, but I also am well aware very few will purchase from me more than once.

The way I see it, a retail discount will benefit retail customers, but it is not likely to benefit me. I won't see many return sales nor necessarily larger sales. If you want to buy a sleigh bell strap as a gift for someone, you probably aren't going to buy two just because there's a 5% discount or whatever. I stay plenty busy enough with the retail customers I do get -- and for the full prices I ask -- so I really don't think I need to cut my margins.

I just finished a custom order for another customer and this is a story that has a happy ending for me as well as the customer. This woman had talked to me over a year ago about doing a project for her, but decided to ask a local craftsperson to do the work instead. I didn't get offended -- that's the way things go a lot of the time and I'm okay with that. A few months ago, she called me again and asked me if I would still be willing do the job. She explained the other craftsperson had really let her down and didn't get the job done at all. I agreed to do the work and was able to finish the order today. I'm charging her about $400 for the project, and she's ecstatic about how it's turned out. As am I.

Here's my response to the woman who asked about a discount if she ordered several items. Thanks to @amd for the inspiration.

"..._Thanks for your interest in ordering more items from me. I gather the products you ordered in 2014 are still performing well for you, and that is really good to hear. I would be glad to do business again with you. 

"I regret to say that I do not offer a retail discount for purchasing multiple items. The craftsmanship, time, and quality materials I use to hand-make my products are the same whether I make one item for each of a dozen orders or a dozen items for one order_...."


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## TheGecko (Dec 18, 2019)

(Nodding head). Tsk tsk,  Um hum.  Well bless her heart.

I can see discounts for wholesale orders, but not for retail.  But with that said, I do do nice things for regular customers...a Lotion Bar, a Travel Bar, a sample bag of Bath Salts.


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## MaryAlice (Dec 18, 2019)

I can totally relate DeeAnna. As a musician we often get asked to perform for free. "It's great exposure!" Utter BS.


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## lsg (Dec 18, 2019)

I like your answer, DeeAnna.


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## amd (Dec 18, 2019)

Great job, DeeAnna! Glad I could offer some inspiration. I really like that you reinforced the craftsmanship and quality - Immasteal that bit from you


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## Soulboy1973 (Dec 18, 2019)

No Uh Hum from me but I will say there is a difference between a regular customer you can rely on, the kind that buys every month and a customer who buys once or twice a year. The former is precious and will keep you in business and worth giving a little discount to once a year as a thank you for the custom. The other is no more than a first time buyer who may not ever come back. You don't give discounts to those customers simple as that really and they shouldn't ask either.


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## DeeAnna (Dec 18, 2019)

Steal away! Love how we're sharing inspiration as well as gripes.


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