My pal Donna posted this and when I saw it, I just knew I had to write about this in my Lessons Blog here for you.
This has actually been quite the hardest lesson for me to learn. I want to be NICE, I want to HELP so I try to “do someone a favor” and discount the item I am selling or making for them. The problem with this, I have noticed something….
It bites me in the ass!
The most recent experience is an item I was making for someone who gave me a possible contact to another connection. I thought how nice that was and she said to me it was a joint gift and so I thought, “Hey why don’t I give her a discount for giving me that connection”
Funny thing is, the connection never bought anything. IT did not end up a sale. It did not end up with another referral that ended up with a sale. So why the hell did I give HER a discount. Maybe that sounds harsh, but the reality is that I marked MY item down for NO REASON whatsoever. I did so “Out of the niceness and kindness of my heart”
I wish I hadn’t.
It never fails to me that the people I try to give a discount to or help out, end up being the worst pain in the asses to me.
A $100 item I discounted for this person at $60 has already cost me. I even sent a sketch beforehand to approve (which I do for all my clients) and she did not understand I found out, though she approved it, but now of course doesn’t like it and wants to change it. So now I need to reinvent the item. Which is now costing me more money than the agreed price.
The other problem I run into with discounts is the argument I get afterwords. It’s like they forget I am trying to help them out. I could not believe someone I THOUGHT (being the key word here) was a friend decided to argue with me when I reduced the price of the item for her. She said “Well, if you can discount it that much why don’t you just sell it for that much in the first place?”
First I was stunned that she did not see the niceness of my soul. Then I wanted to go smack myself like I had a V8.I thought” I too have thought this about things on sale”
When I tried to explain I was doing her a favor she battled with me. Then asked for MORE off the price!! I said no, she didn’t end up buying and I put the price BACK to where it was and left it there. After much argument on this issue and others we sadly ended up not being friends. True colors seems to show when money is involved.
The other thing we do is give a discount after they even AGREED to pay that price! WHY?!?!?!? Stop selling yourself short!!
The thing I do too often is toss in a fascinator. I need to stop doing that. If they didn’t ask for one, stop throwing away $10. If I added that up I gave over $2,000 away in fascinators last year alone! Money out the door.
Then I saw this post and nearly fell over again. Hell to the yes…..
Do not lower your OWN self value by lowering your price tag. Too many times as Work at Homers, Entrepreneurs, Self Made Business guys and gals we , without realizing it sometimes even, are lowering our own value by lowering our price tags. OR sadly, not even charging the right amount in the first place.
- Charge the value of the fabric or item itself
- Add any elements or extras you did
- Remember to input the TIME it took you to make…THIS IS YOUR VALUE
- Now charge that cost and LEAVE IT THERE
- STOP DISCOUNTING. STOP LOWERING YOUR VALUE
- VALUE YOURSELF MORE
Why is our time any less important? It is not and we need to stop forgetting this and start adding our value in.
“But if I did that the price would be too high and I can’t sell the item for that cost!!”
Then, you are trying to reach the wrong market for that item (try other areas, groups, venues, etc), or you might need to learn to do it different or faster (Take lessons on Craftsy, or You Tube, or local school or college) , or change what item you are making (stop trying to sell shirts no one is buying and make a different type of shirt or start making skirts, or make them with your own fabric that YOU create, or whatever, just Be Different).
If you don’t want to change, then you need to stick to your guns.
YOU ARE WORTH IT!!
“So, that means I should NEVER discount anything?”
No that is not what I am saying.
Just like clothes in your closet if you still have that item over a year, you need to get rid of it.
- Donating it to a worthy cause, get a receipt for the value of the item, and take it off on your taxes the following year. (I do this a lot and it has worked well for me)
- Or, that could mean having a flash sale and lowering all the prices for those items online or at a vendor show. (Also once a year, I do this and sometimes I make more money this way.)
- Offer a cash discount only at shows. It makes it easier than having to figure up taxes. If they pay with cash, there is not interest charged on my square and I don’t have to pay the tax.
Can I gift items?
Sure. Gift away. But realize those gifts may not come with the response you desire. Those people you gift are NOT obligated nor SHOULD feel obligated to reciprocate.You can ask if they will, but gift with the intent of a gift. Not an expectation.
What about Bartering?
I love to barter. However, have a bartering agreement. I send items to models all the time. But the model knows they are to take pictures with those items and send the pics to me. The item they are gifted in a bartering agreement is payment for the pictures. Be clear. Write it out. Have it signed. Or don’t send it. Sadly, you will learn a few lessons there the hard way as I did. Some people want free shit. Some are willing to help you out by helping them. Make sure people have YOUR best interest at heart as well as their own. Then when you find THOSE people…HANG ON TIGHT. They are GEMS! GEMS I TELL YOU!
Bottom line————–>>> Value You. When you value YOU, you will stop the discounts.
Until Next time
Xoxo Trisha Trixie