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YWereanot-for-prot.Weresmallandpoor.Wereanagency.Werefriends.CreativeBusinessneverHAVINGARTIFICIALLYHIGHNORMALPRICESTHEUSUALREASONSWHENADISCOUNTMIGHTMAKESENSERESPONDINGTOREQUESTSFORSPECIALDISCOUNTSourewrappingupapitchtoawell-qualiedprospect.Theysaytheylikeyouandwhattheysee.Youlikethemandthesizeoftheiraccount.Thencomesthepricingdis-cussion.Yoursarentthathighandjudgingbythequalityofwhattheyreaccustomedtothereshouldntbeaproblem.Buttheyexpectadiscountbecausetheyreanot-for-prof-itastart-upatradeassocia-tionanagencyarelativeanoldcollegeroommate.Ortheywantadiscountforearlypayment.HowtorespondResistgivingthemspecialtreatmentCutyourpricetolandtheirbusinessInateyourpricingnowsoyoucanlatergivethemthediscounttheyexpectAndifyoudogiveadiscounthowmuchLetsgetthisoutofthewayrst.doesnotrec-ommendmarkinguptomarkdown.So-calledsuckerrateschargedtoclientswhodonthavetheforesighttonegotiateoraskforapricebreakareunethicalandbadbusiness.Armshouldtreatallitsclientsfairlyandwithoutdis-crimination.Todootherwiseistosowtheseedsforbusinesstroubles.Soonerorlaterclientscatchonandgoelsewhere.Assumingyourrmspricingreectitscostsandthatyoudesireasuccessfulandstablebusinessanydiscounthastobeinyourrmsinterestsnotjusttheclients.Inshortdiscountsshouldbejustgivenoutarbitrarily.Somepricingdiscountsaregoodbusinesspracticemanymorearenot.Thatisafewwillactuallyaddtoarmsbottomlinemostwillsubtractfromit.Themostcommonrequestfordis-countscomesfromtheseorgani-zations.Therationaleisthatyoushouldprovideabreaktohelpthemouttocontributetoallthegoodthingstheyarework-inghardtoaccomplish.Inessencegivingthemadis-countwillbemakinganottax-deductibledonationtotheirorganization.SorstaskyourselfthisisthisorganizationoneyoureallywanttogivesomeofyourincometoThenconsiderwhetherothermajorsupplierse.g.utilitiesalsoprovidedis-counts.Finallythinkaboutwhethertheorganizationsemployeese.g.itspresidentworkforwell-below-averagesalaries.Unlesstheseanswersareallyesthinktwiceaboutwhetheryoushouldcontribute.Thescenariousuallygoeslikethistheyloveyourworkandreallywanttoworkwithyoubutjustcantafforditwithoutgettingapricebreak.Suchrequestsareoftenmadebystart-upsandsmallercompaniesandareusu-allysincerealthoughoccasional-lyonlyanegotiationtactic.Whicheverbecarefulnottoletatteryoverrulereason.Thereareafterallhundredsoforgani-zationsthatcantaffordyourlevelofwork.Moreoverthechancesareslimthatasmallclientwillfavoryoushouldtheygrowlarger.Whyshouldyouletanotherorganizationssizeornancialproblemsbecomeyourprotabilityproblem5CreativeBusinessMarchApril2008Theirreasoningisthatyourpricesaretoohightoallowthemtoapplyaprotablemarkupwhichcouldwellbethecase.Soyouhavetodecidewhetheritisworthwhiletoloweryourpricessotheycangetthemarkuptheywant.ShouldyouworkforanagencyorothercreativermatadiscountwhenyoucanworkforothertypesofclientswithoutgivingoneCansecond-partyworkatadiscountbeprotableTheseareperhapsthehardestrequeststoreacttoafriendacquaintanceorrelativeneedssomethingdoneandthinksofyou.Intheo-ryitshouldbegoodforbothofyoushegetsqualityworkforlessyoupickupagoodprojectwithoutanytimeorexpense.Inpracticethoughitseldomworksoutthatway.Evenwithadiscountyourpricescouldbemuchhigherthansheexpects.Andsinceout-sidersareseldomfamiliarwiththecreativeprocessherexpec-tationscouldalsobeexcessive.Withallgoodintentionsbusi-nessfromfriendsoftenturnsouttobelessmoneymorehassle.Thisnottomentionthatitcouldalsostrainanotherwisegoodrelationship.Despitetheabovegivingadis-countdoesntalwaysleadtoproblems.Therearetimeswhenaspecialpricereductiontypi-PRICINGYOURSERVICESNotcoveredinthisarticlearedis-countsbasedonthevolumeofworkfromoneclient.ForinformationonhandlingthemdownloadthearticleReplyingtoDiscountRequestsbyOfferingRetainersfreeuntilMay1stfromwww.creativebusiness.comCB178.lasso.