Dealing With Customers' Discount Requests

"Our response is very situation specific. If the customer is buying a small to average amount of 'in--store' product, my response is usually: 'We are sorry, but we do not discount our merchandise.' If the customer is purchasing a large amount of in-store product, we will initially offer additional product free of charge. For example, if a customer is buying 20 boxes of $20 stationery for clients, we may offer an additional box or two for their own use. Most common discount questions come up at holiday time, when certain customers are buying large numbers of boxed holiday cards. We are most flexible here. We still try to avoid giving a blanket discount. We might offer imprinting at a reduced cost or absorb shipping if the product is being special ordered. If we have to offer a discount, it is almost never more than 10 percent. Our experience is that discounting product is a slippery slope. Once headed down, it is virtually impossible to regain the higher ground."

Bob Furlong, President
Copley Flair, Boston, MA

"My answer is very short. I simply say, 'I am so sorry, but we are so small that we cannot afford to give discounts. However, we have an annual stationery sale May 1 through 15, and I will be happy to call you prior to the sale."

Judy Carroll, Owner
Papers, Newport, RI

"My response to customers' requests varies. First of all, I don't get many requests for discounts. Usually, my regular customers don't ask for a discount. If they are buying a lot of a particular item, I may offer them a 10 percent discount. Customers who have never been in the store and ask for a discount, I simply tell them that I could not afford to stay in business if I gave them a discount, as my prices are very reasonable. So far, no one has left upset."

Gail Licciardello, Owner
Paradiza, Portsmouth, NH

"When someone asks for a discount, I say NO. I ask if they received excellent service. Did they find what they wanted? Does their trashman, electric company, water company give them a discount? Then there was the person who made the mistake of asking me if $16 was my best price for a box of Crane's stationery (marked $16 by Crane). I said, 'Actually, $20 is my best price, but you can have it for $16." Thank heavens he laughed. He has remained a wonderful customer and we giggle all the time about what my best price is on things. We hit $1,000 for a handmade card recently."

Jean Betses, President
Village Paperie, Kennebunkport, ME

"We explain to customers that because we offer the best customer service, attention to every detail, and the guarantee that they will receive a product that meets our standards and their expectations, they will surely find that more important than a discount. We find that this more than satisfies our customers."

Beth Buchanan, Owner
Buchanan Ink, Nashville, TN

"What I want to respond is: 'What do you do for a living, and may I have a discount on my colonoscopy?' With some companies, we are contractually obligated not to discount. That works sometimes. I often explain that to continue the service they receive, I must pay salaries. They usually understand."

Sue Valenti, Owner
The Paper Place, Nashville, TN

"I haven't been asked that question before. I am not sure what I would say. This would put you in a difficult situation in light of the economy, and small businesses like mine are struggling to stay open. I would refer them to a big-box store that starts with a W to look for her discounts."

Chrystial Prater, Owner
Sincerely Yours of Rome,
Rome, GA