Customer asking for a discount

J

JoeNorm

Senior Member
Location
WA
I just sent a rather large invoice(for me) to a good customer who's given me a lot of work in the last couple years. H has a large property and will likely need a lot more work done in the future. He responded to the invoice asking if I can give him a discount.

I was a little taken aback by the question and now I am not sure how to respond. On one hand I could play hardball and not budge but on the other it might make sense to throw him a bone if it means years more good work to come. I have a high hourly rate and mark my materials up so there is a little wiggle room.

Any thoughts on this from seasoned business people?
 
Are your invoices due-on-receipt or do you give 30 day terms? Some business offer "2-10 net 30" terms - take 2% off if you pay within 10 days, otherwise, it's the full amount due in 30. Or, you could say that you'd already figured in his "good customer" discount.

If there is the prospect of a fair amount of future work, you might set up some sort of agreement/contract where he gets favorable rates and calls you for all jobs in the next year/two-years/etc.
 
I get discounts all the time people like it. Good word-of-mouth still make money on the job. Depends on the guy’s personality too. I actually like people like that. It all depends on how he asked.

And then you give it to him and then you just remember how much you were short and then it just magically pops up in the next one with that added increase on top of that
 
AC\DC said:
I get discounts all the time people like it. Good word-of-mouth still make money on the job. Depends on the guy’s personality too. I actually like people like that. It all depends on how he asked.

And then you give it to him and then you just remember how much you were short and then it just magically pops up in the next one with that added increase on top of that
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Yeah I agree with this. Never hurts to ask, and I like the guy so I gave him one. He's paid me a lot over the last couple years and it all comes out in the wash anyway.
 
In part depends on your margin. If your charges are already at the point of make/break, you have no room for giving a discount without your costs not being covered. A good customer I usually already give a better rate than "one timers", and explain to them that I have built in for them a loyalty discount. Materials mark up is becoming much more difficult with the big "price to me" increases lately, and customers are more looking at what does it cost on amazon or the big box for similar product and push back on the markups.
My experience has been when one of these "good customers" start asking for a discount they are not likely to call you back even if you give them one, unless they can't find someone else for a quick urgent repair call.
 
It depends. My main client almost never complains or comments about the amount of an invoice. Recently they did on one, so I took 2k off a 9k invoice. I don't think she understood how much a can of worms that project was, but whatever.
 
JoeNorm said:
I just sent a rather large invoice(for me) to a good customer who's given me a lot of work in the last couple years. H has a large property and will likely need a lot more work done in the future. He responded to the invoice asking if I can give him a discount.

I was a little taken aback by the question and now I am not sure how to respond. On one hand I could play hardball and not budge but on the other it might make sense to throw him a bone if it means years more good work to come. I have a high hourly rate and mark my materials up so there is a little wiggle room.

Any thoughts on this from seasoned business people?
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JoeNorm said:
I just sent a rather large invoice(for me) to a good customer who's given me a lot of work in the last couple years. H has a large property and will likely need a lot more work done in the future. He responded to the invoice asking if I can give him a discount.

I was a little taken aback by the question and now I am not sure how to respond. On one hand I could play hardball and not budge but on the other it might make sense to throw him a bone if it means years more good work to come. I have a high hourly rate and mark my materials up so there is a little wiggle room.

Any thoughts on this from seasoned business people?
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Yes. Give him the discount.

My old boss told me 50 years ago, "put a little something in the quote so you have something to give back"
 
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