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.
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.
