How do you deal with family and friends who wants discounts? I own a small cookie business. I make about $200-$300 per order for my work so these aren’t cheap cookies. I get family members and friends sometimes messaging me to do custom cookies for them for events for such a small (basically just covering my expenses without making me any money at all) amount or sometimes I feel they even expect it for free and it’s really awkward for me to tell them my actual pricing because I know they won’t spend the money. However, my time is valuable and making these orders is very time consuming - time I can be working on another order that’ll bring me a lot more money.
So, how do you deal and gently tell them “no” or “it’ll cost you XY amount” which would be pretty much the same as any other client? I have done a few free orders for close family and friends and a few really cheap ones but I’m done with this. I’m busting my ass for nothing.
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I would recommend to do a standard 5-10% friends and family discount and let them know that this is the max you can do at the moment. I think that true friends should support your business even more and add a tip to the total amount instead of asking for a discount. But of course it depends on the price and financial situation. If that kind of conversation occurs where they ask why you not giving them the bigger discount just explain the situation that your time is valuable and you still need to earn from this.
“Sure, Tim, I have a Friends & Family discount which is X% off. Let me know if you’re interested.”
“Sure, Tim, I have a Friends & Family discount which is X% off. Let me know if you’re interested.”
“Sure, Tim, I have a Friends & Family discount which is X% off on orders over $Y. Let me know if you’re interested.”
If they are going to be offended for having to pay a discounted rate for cookies that you can’t give them for free due to fees and resources than that’s their problem.
You tell them how much to pay, how they react is up to them. One thing I have just began learning is I can’t control peoples emotions even if I want them to be ok with something and in my mind I believe there is good reason; the simple fact is not everyone thinks alike. So do what you can but after that it’s their fault if they make a big deal over some cookies.
They aren’t friends worth having. Or family for that matter. They should be paying full price to support you.
Either just say no, or have a friends and family price that is x% discount and stick to it. This should be modest, like 10 or 15%.
If they are expecting free cookies: “I’m sorry, I have to prioritise my paying customers. I have to focus on the health of my business”.
Or run through ChatGPT: “I appreciate your understanding. As much as I value our relationship, I need to prioritize my paying customers to ensure the health of my business. I hope you can understand that this is a necessary step for me. If there’s anything specific you’re interested in, I’d be happy to discuss rates and services with you. Thank you for your support.”
Or something along the lines of “I appreciate you like my cookies. I also appreciate my friends and family support my business paying a fair (full) price.”
I’m a mobile auto detailer OP and if anyone in my family wants their cars cleaned I tell them they have to come to me and they’re buying lunch or dinner and zero of them have taken me up on the offer.
Personally, I wouldn’t be too worried about pissing off family. If they have no respect for you and your work, you shouldn’t have respect for them.
This. They aren’t asking for you to bake cookies for fun, they want them for their for profit endeavors. Why not ask to get a cut on their profits
Offer them a slight discount. ‘I usually charge this but with the family discount it comes to this’. Giving friends and family discounts will bolster your word of mouth. You can still make profit while giving a discount.
Just inflate the price and then tell them with discount its normal price win-win
“Thanks for considering and trusting me with your event, however the price you offered doesn’t cover my expenses, would XX$ work ? I already applied X% family and friends discount”
That’s not really supporting your business
If you want to be a nice guy just say you’re busy… they should get the hint. If they don’t get the hint make them some wack as cookies and let them know your effort was also discounted.
I’ve owned a cookie business for 40 years, I would never ever ever charge friends and family full price. You send them the price list and offer a certain percentage off. Don’t forget in big, bold letters what your custom cookie surcharge is along with required lead-time. Itemize the invoice so they see their discount. If you’re not making money with a reasonable discount, your pricing is off. I completely understand though, it’s the expectation that’s frustrating.
With that said, you’ve got to get used to it, it will never end. When I go to our bank, I always get asked, “Did you bring cookies?” I don’t bring them every time, just when I feel like it. It’s a good problem to have and you’ll eventually embrace the fact people are eager for your arrival, no one is excited to see a proctologist
Just make a 10% “inner circle” discount that you give out. Reset the code every 6 months. Have it in your back pocket not just for friends/family but the people who keep hitting you up on social, etc.
Yeah just make a policy about it because then you can point to “what I always do.”
“5-10% off, but then you need to share about it on socials.”
Then you can write the discount off as a Marketing expense. Talk to your accountant.
You cannot write off a discount.
My Immediate family including my kids, siblings (except 1), and inlaws + a friend who is closer than family, for themselves, always a yes.
For them to give as a gift, a fundraiser, a party, If I have the time, I’ll do it at my cost.
Our family business’s policy is different. We aren’t starting up anymore, so we can afford to be generous to friends and family that supported us along the way.
We do dog grooming, so as long as you come on a slow day and aren’t under unrealistic expectations on time etc then I don’t make money. If I have to have an employee I instruct friends/family to tip the employee the amount their commission would be. If one of us do it just get us some lunch. Burn us on this and we just charge full price moving forward.
When you are first starting the most important thing is your friends and family should support you, that means full price (maybe a slight discount). If they aren’t willing then they aren’t supporting they’re taking advantage.