Companies offer a discount-now what

[carrbowl]

so lets say you normally order from Millers, and this month they offer a discount and you want to pass it on to your customers. So they offer 40% off. I know that everyone can do it different, but I looking for ideas as to how YOU do it. Do you take 40% of your clients price? Do you take 40% off Millers price and still add your mark up? Do you just give your clients a 20% discount and make it easy??

I know of you have been in this business long enough to be very wise about this, and some of you are busy smart...I is not one of them!!! Help is appreciated!!!

[Jake]

I can't speak for others, but I don't pass the saving to the client.

When a lab has a big sale, that's when I order my sample prints.
If I got a large order from a client when the sale is going on, then that's awesome. I don't want my repeat costumers to "wait for my sale" before they order prints the next time.

[Tom]

That's more profit for me. It makes things too complicated to change my prices every time someone offers a 1-month special.

[w9ctm]

Jake has the idea... Of course, Thomas makes sense as well. Actually, they both do. When my lab offers a good discount, I try to send in work for me.

With my luck, a customer would wait until the last minute, you are swamped, and they drop off an order the last evening of the sale, and you can't possible get it in in time. Now, do you refuse the order?
I prefer to avoid the problem as these two have suggested.

[bondarnes]

I agree. Any lab savings go straight to my bottom line. However, we do offer a reprint special in January at a reduced price, knowing that our lab has a first quarter special every year. But that is part of our promotional calendar and is only available from sessions six months or more ago that have already placed an order.

[Jeff Lane]

Profit margin is profit margin, and a fair price is a fair price, but the two concepts are not necessarily interrelated in every sale. If you quote someone a price based on expected time and expenses involved, but it takes a little extra time, or you encounter an unexpected expense to be able to deliver the goods, you still honor the deal, right? If the surprises cut in your favor for once, you're perfectly justified to keep the difference, because your only obligation to the customer is to do what you said you'd do for the price they agreed to pay.

However, one thing that can really drive customer loyalty and/or solid referrals is to under promise and over deliver. If you really want to, you can use this 40% windfall as an opportunity to surprise the client with a little nice-nice, by taking a few dollars off the finished package as a "thanks for your business." But I wouldn't make it part of the basis of the bargain -- it's a bad business practice that might bite you in the hiney if all your clients expect it. But as a one-off advertising opportunity, it's priceless.

[bondarnes]

Originally Posted by Jeff Lane

...............However, one thing that can really drive customer loyalty and/or solid referrals is to under promise and over deliver. If you really want to, you can use this 40% windfall as an opportunity to surprise the client with a little nice-nice, by taking a few dollars off the finished package as a "thanks for your business."

I agree in principle, but to really get your most bang for the buck, use part of the lab discount to buy additional products such as a few extra wallets. The client is still duly impressed and you still have a bonus to your bottom line. If you do the math, you will find that a discount comes right out of your pocket, but a bonus costs you almost nothing.

[Jeff Lane]

If you do the math, you will find that a discount comes right out of your pocket, but a bonus costs you almost nothing.

You're exactly right, Don. And psychologically, a bonus that the client really enjoys is always better than a discount. You wouldn't think so, but it's true. (And also explains the ubiquitous "but wait there's more" guy yelling at you on the TV.)