Is it smart to factor in pre-discounts into your prices?

[yhpargotohp]

Is it smart to factor in pre-discounts into your prices?

As in for example, suppose you set a price for your basic full day coverage at $2,000 and a prospective client says they are interested in having you shoot their wedding but they try hard to get a discounted rate, as in trying to get you to do it for $1,800. But what if you already set your price as low as you can possibly go comfortably and you don't want to do it for $1,800 but at the same time you don't want to lose a client just because he was being tight and one of those people who is of the mindset that they always are supposed to haggle someone down in price or otherwise they are being ripped off by paying full price.

So if you understand what I'm asking...

Would it make sense just to mark everything up in price by 10-25% just for the purpose of having some negotiation room in those times where a prospect will try to get you to give them a better deal?

I am thinking myself, it may be better to stick to your guns on your most basic starter price, no discounts, but instead try to upsell them when they ask for a discount, as in try to get them to pay the full basic starter price and get them upsold on other products, and give them a discount on the upsell instead?

Just curious on if you all think the 1st idea of padding everything is smart, or the 2nd idea of trying to offer a discounted upsell instead is wiser, or if there's a better yet 3rd option?

[Howard Barlow]

I think the better method is to decide what your price is, and that's it. No discounts. However, that's not to say you can't entice them with a few small extras. Once you let someone talk you down on your rates, you have established your prices are negotiable, and you really didn't mean what you told them it cost the first time. We aren't selling used cars.

I always tell people I don't play games with them. My rates are what they are, and this is the best I can do for them and still stay in business. I kind of chuckle and say, "If I was going to do that, I would set my rate at $22-2300, and let you talk me down to $2000."

No doubt, there are other theories and business models.

[ShutterSpire]

You dont want a client that always wants to haggle you just to save a couple hundred dollars!! Trust us. Those are the clients that have ONLY given us headache after headache. If they want you, they will pay for your services.

For example, I met with a client for a consultation and told her my price was (at the time for what she was wanting) $2195. She was very nice, and politely told me that the highest she had budgeted was $1500. I was sad, but told her thank you for her time and wished her luck. About a week later, I received the signed contract, deposit, AND a $250 upgrade product from her....

If you go down to her price, she knows she has you. She could do this on future products or services. Worse yet, she could be like a client that did something similar to us last year and come back well after the wedding attempting to sue you for some illogical reason.

[ShutterSpire]

Originally Posted by yhpargotohp

Is it smart to factor in pre-discounts into your prices?


Would it make sense just to mark everything up in price by 10-25% just for the purpose of having some negotiation room in those times where a prospect will try to get you to give them a better deal?

I am thinking myself, it may be better to stick to your guns on your most basic starter price, no discounts, but instead try to upsell them when they ask for a discount, as in try to get them to pay the full basic starter price and get them upsold on other products, and give them a discount on the upsell instead?

Just curious on if you all think the 1st idea of padding everything is smart, or the 2nd idea of trying to offer a discounted upsell instead is wiser, or if there's a better yet 3rd option?

And to better answer your question...

Never 'discount'. Instead, add in value-added services/products. For the same price as your base, say you will throw in an additional portrait session, print credit, or so on.

[yhpargotohp]

I like the way you two are thinking, bold & confident. That makes a lot of logical sense, I think you are right in it leading to future problems. I liked the analogy of "used cars" too.

[LadyShutterBug]

there are certain people i'll always adjust my rates for. i price so that even with their rate adjustment ("discount") i'm comfortable.

these tend to only be close relatives and truly close friends. i'm cool with that.

i do NOT adjust pricing simply because someone has set a budgetary number. i will adjust product offerings to perhaps get lose to their comfort level, but never just whack amount of dollars off because i want the job. that's not fair to the people who are happy to walk in and pay the list price!