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howlback

"Can I have a discount?"

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Had someone ask me that.

Curious if anyone here has been asked that.

If so, what was your response?

When I started, I priced everything just below market value. No room for marketing gimmicks, or even wholesale. It's hard explaining that to a potential customer. Especially when you were trying to do them a solid by not outrageously marking up your products in the first place.

Edited by howlback

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I am curious what makes that person think they are entitled to a discount.  Typically, I will explain that on most items, the margin is so slim already, that there is no room whatsoever for any kind of discount.  I might show a little appreciation for a GOOD customer by giving them a deal on something, but if a first time or occasional customer that makes small purchases would ask this, then we have started out on the wrong foot already.  Stick to your guns, or be prepared to get run over.

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2 minutes ago, Big Sioux Saddlery said:

I am curious what makes that person think they are entitled to a discount.  Typically, I will explain that on most items, the margin is so slim already, that there is no room whatsoever for any kind of discount.  I might show a little appreciation for a GOOD customer by giving them a deal on something, but if a first time or occasional customer that makes small purchases would ask this, then we have started out on the wrong foot already.  Stick to your guns, or be prepared to get run over.

They wanted to buy two items both upwards of $150. Unfortunately, they said "I always ask whenever I buy multiple items."

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I don't fault a guy for ASKING, and people are used to seeing "buy one, get one 25% off" (or something like that).  But YOU set your pricing.  I think your mistake - if there was one - was "explaining".  I have been known to charge what some don't want to pay.  AND I have GIVEN AWAY work I had a lot of time in.  But in both cases, I figured 'my work, my choice', and do not offer "explanation'.

 

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14 minutes ago, nstarleather said:

I usually say that we've priced our products based on what they cost to make, if we were to offer discounts then we'd have to raise all prices across the board by the same percentage to still be making money.  Conversely if you're giving every one a discount, then it's not a discount. 

I've seen your pricing, Buddy. Everyone gets a great deal at Nstar.

 

 

As for the topic of discounts I work in a retail construction environment. We do cut some good deals to long term customers. And we do wholesale for builders and contractors.

But someone new, no. And, I try never to make a sale based on price. If you are selling based on price, you need to spend a little more time focusing the client on the products, and how it will improve things for them.

Every customer and product is different, but if you do the above (the right way) you will see sales.

Example: A woman wants a tote. You build the strongest best tote available. She scoffs at the price. This is the time to ask her something along the lines of this.... Do you travel? (Yes). Do you have children (Yes).  Let's say you do purchase this tote. Yes, it's more expensive than others. But, imagine one day, years and years from now. You and this bag have traveled everywhere together. France, Italy, the grand canyon..... Now imagine after all of that, being able to hand this tote to your granddaughter on her first cross-country trip. 

If I was selling my leather wares, that is the approach I would take.

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I get asked every time I am out at some event or show and the answer is always, "no".  I don't explain anything as they don't care what you have invested in it, they only want it for less.  I also get some responses about how they could get the same thing at Walmart or somewhere else cheaper and that is when I explain to them that they "can't because I don't wholesale to those places and they don't have a supplier that makes what I make and how I do it."  That just makes their day and then they stand there for awhile contemplating that fact and that they got called out on it.  Even with all of that I still have about an 85% sale rate so I guess the truth is not a bad thing, even when it is hard for most to swallow.

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5 hours ago, bikermutt07 said:

A woman wants a tote. You build the strongest best tote available.

That might be valid.  Problem is, there are SO many out there NOT making the best tote, yet claiming that they ARE the best tote.  It's just BULL.  Everywhere.

Personally, I have something "on sale" at all times.  Could be because I got a great deal on some exotic leathers.  Sometimes it's because I 'scored' on some good cow.  Sometimes it seems like good marketing.  And sometimes just cuz I kin.  It's not the same goods, even sometimes one day to the next will be a different thing.  It's aimed at the NEW customer, and it's not a deep discount.

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The answer is usually no.  However, I do have some scaled pricing based on shipping vs local pickup vs friends vs repeat customers.  So I'll sometimes adjust my prices for those.  Let's say I quote a local guy my standard price, he asks for a discount, I can knock $5 off because I build the shipping price into my price.  He gets a bit knocked off, I don't have to ship and make the same amount.  

Random guy asking and shipping? They better be buying a lot, then maybe.  It's happened maybe twice.  Or I'll figure in that I only have one shipping cost and use the money saved to negotiate a bit.  

I tell them I price my stuff at the lowest point I'm willing to take for it on a single item.  They can take it or leave it.  

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If I was selling something, I'd explain that your work costs more than the sum of used materials. It's your time, your efforts, your skill. Also, simply ask them "why do you want a discount?". If the answer is "the price is too high", maybe it's not your client, after all? 
In your case, just tell them, that you don't have any discounts for now. But if they're going to buy something else in the future, you could consider it. 

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