As an entrepreneur, it is difficult to determine what a good price is for the services, products, or hours your company provides. After all, the client must be willing to pay the price you charge. A client always wants a discount, so you will need to be very firm to refuse one and still secure the contract. Those who don't give discounts earn more!
What is a discount?
By offering a discount, you demonstrate that you do not value your own product enough. Customers will no longer take your price seriously after offering a discount. When they want to make a subsequent purchase, they will want a discount again. Additionally, offering a discount will become known to others by word of mouth. It is logical that they want this discount too. They will no longer settle for the price without a discount. Discounts are addictive.
Discount? What is in it for you?
If the customer asks: “Can you do something about the price?” You say: “Yes, that is possible, what do we get in return?” That is not strange to ask; in fact, it is more than logical! It doesn't have to be a big deal. But the customer will be aware that next time they won't need to ask for a discount. When people ask me for a discount, I always ask the customer: “Shall we take a look together at which part of the (product) we can leave out?”
So… no discount?
Giving away discounts is a no-go. But that doesn't mean you can never be flexible with your pricing again. If you have a large client who purchases many items from you, you can certainly reward them by being a bit more competitive with your rates. Do explain this clearly to your client, however, and do not put "discount on the amount below" on the invoice. Call it a volume discount instead. That way, it is immediately clear to the client that they received this discount because they are a customer at a certain level. You explain to customers that you are refunding a portion of the administration costs. Everyone will understand this.
You might also consider offering a discount for the following reason:
- When the customer decides to enter into a contract for a fixed term (e.g. 3 years);
- Pay in advance;
- Package discount (When the customer decides to purchase multiple products or services at the same time);
- Next year, the start-up costs will be waived, saving you money;
- Discount you give because the customer pays annually;