Have you ever encountered a family or friend who asked you for a discount?
Awkward. Uncomfortable. Ungenerous.
I know you feel the same way.
Recently, I was hired by a family member to do some work, and when the contract was over and there was no agreement for an extension, they still asked me to work on another project without first giving me payment for the work I had previously done.
As a business owner and an entrepreneur, the main goal is to make a profit and get paid for the work that has been done. So it’s natural to set a price for your service, unfortunately, some family members and friends think they are entitled to certain discounts and freebies from you because they are related to you.
This is the most embarrassing feeling I have ever had when a family or friend asks for a discount and we do not have a clear set of rules in place for them to do so.
To avoid this scenario in the future, here are three ways that you can do when friends and relatives ask for a discount.
1. Set a specific day of the month or quarter when you’ll give them a discount
That way, you will not feel like you are saddling them with a full-time investment. If you set a specific time and price, it will be much easier to avoid negotiation and guilt-tripping arguments later on. You also need to determine who falls under this plan. Just your close family members and special friends? And to what degree of consanguinity or affinity matters on how much discount you choose to grant. It’s important to be consistent.
2. Learn to say NO
Yes, it might hurt their feelings for a while, but it’s always good to be straightforward and make clear to them the policy you have regarding your business. Send them an email or card thanking them for hiring you and trusting you to work with them, but at the same time inform them that you do not give discounts or special perks to friends and family. Tell them your rates and the available dates they can choose from. Using the word “hire” implies payment, and by doing so, you are laying the groundwork for them to pay for your service even before you have presented them with your NO family and friend discount policy. This also avoids the awkward moment of invoicing them.
3. Be clear and straightforward
If you are going to give them a discount, explain to them that you do not normally do this and that it should be kept to both of you. So the customer does not keep expecting discounts or freebies all the time. This way you can be proactive and avoid any awkwardness. Above all, you should never advertise your policy in public. You know who it’s for, and you do not want every person you have met asking for a friend discount.
I hope these simple tips help you a lot.
Be profitable and be blessed.
