What would you do if...

[Mack C.]

I'm willing to reward a good customer.

I offer a discount if a person buys more than one pen. Typically 10% off for two pens and 15% off for three or more pens. I make sure these discounted prices stay above my "wholesale price", which is the lowest price where I still feel good about the sale.

I will discount similarly.

One pen, that's my price (I give an extra cartridge and/or pouch or box at the time of sale), 2 pens, 5% discount, 3 pens, 10% discount, 4 pens and up, 15% discount which is the most I will ever discount, although I gave a lady a 20% discount on 5 $55.00 pens last week. It was easier to multiply 55 times .8 in my head than it was to multiply 55 times .85!:biggrin:

5x$55=$275 * 15% discount on $100 is $15. that * x 2 3/4 = $30 + $11.25 .... total discount is $41.25.

Now tell the customer what they owe you! Oh! you owe me $275 - $41.25! DUH!

My way, in my head .8 X $55 = $44 x 5 pens. Customer you owe me $220.00 Ka-Ching!

 

[beck3906]

First question I ask when a customer asks or a discount.....

Are you paying by cash or credit?

I factor in the 3-4% for credit card charges if paying by card.

Oh, I also use a calculator. Don't trust my ability to do math in my head.

 

[avbill]

When you give a discount; That customer will always expect a discount from you. Do you want to start down that road?

Give them something extra. such as if a customer buys a 300 dollar fountain pen from you give them a bottle of ink.

 

[Smitty37]

I'm willing to reward a good customer.

I offer a discount if a person buys more than one pen. Typically 10% off for two pens and 15% off for three or more pens. I make sure these discounted prices stay above my "wholesale price", which is the lowest price where I still feel good about the sale.

I will discount similarly.

One pen, that's my price (I give an extra cartridge and/or pouch or box at the time of sale), 2 pens, 5% discount, 3 pens, 10% discount, 4 pens and up, 15% discount which is the most I will ever discount, although I gave a lady a 20% discount on 5 $55.00 pens last week. It was easier to multiply 55 times .8 in my head than it was to multiply 55 times .85!:biggrin:

5x$55=$275 * 15% discount on $100 is $15. that * x 2 3/4 = $30 + $11.25 .... total discount is $41.25.

Now tell the customer what they owe you! Oh! you owe me $275 - $41.25! DUH!

My way, in my head .8 X $55 = $44 x 5 pens. Customer you owe me $220.00 Ka-Ching!

I can come up with $233.75 pretty quick in my head. Your method cost you only $13.25 though.....enough to by yourself a calculator.....

 

[beck3906]

When you give a discount; That customer will always expect a discount from you. Do you want to start down that road?

Give them something extra. such as if a customer buys a 300 dollar fountain pen from you give them a bottle of ink.

Whether it's a discount or a bottle of ink, they'll still expect something. It's a matter of how much you want to give.

I also was checking prices of ink so I could offer ink during shows. Some of the Noodlers inks I can buy run $10-12 per bottle. I can discount some items cheaper.

 

[Mack C.]

I'm willing to reward a good customer.

I offer a discount if a person buys more than one pen. Typically 10% off for two pens and 15% off for three or more pens. I make sure these discounted prices stay above my "wholesale price", which is the lowest price where I still feel good about the sale.

I will discount similarly.

One pen, that's my price (I give an extra cartridge and/or pouch or box at the time of sale), 2 pens, 5% discount, 3 pens, 10% discount, 4 pens and up, 15% discount which is the most I will ever discount, although I gave a lady a 20% discount on 5 $55.00 pens last week. It was easier to multiply 55 times .8 in my head than it was to multiply 55 times .85!:biggrin:

5x$55=$275 * 15% discount on $100 is $15. that * x 2 3/4 = $30 + $11.25 .... total discount is $41.25.

Now tell the customer what they owe you! Oh! you owe me $275 - $41.25! DUH!

My way, in my head .8 X $55 = $44 x 5 pens. Customer you owe me $220.00 Ka-Ching!

I can come up with $233.75 pretty quick in my head.

Hi Smitty; There was a time when I could do that in my head. Older age is catching up with me!

Your method cost you only $13.25 though

Actually, it profitted me $110 rather than $123.25.....

enough to by yourself a calculator.....

It's in my Carry with me Bag now!

 

[Smitty37]

When you give a discount; That customer will always expect a discount from you. Do you want to start down that road?

Give them something extra. such as if a customer buys a 300 dollar fountain pen from you give them a bottle of ink.

So when CSUSA gives you a discount, you expect to get the same discount the next time you buy from them??? Not unless you catch another sale....

 

[The Penguin]

When you give a discount; That customer will always expect a discount from you. Do you want to start down that road?

Give them something extra. such as if a customer buys a 300 dollar fountain pen from you give them a bottle of ink.

So when CSUSA gives you a discount, you expect to get the same discount the next time you buy from them??? Not unless you catch another sale....

there's a difference between a "discounted" price and a "sale" price.

 

[Smitty37]

When you give a discount; That customer will always expect a discount from you. Do you want to start down that road?

Give them something extra. such as if a customer buys a 300 dollar fountain pen from you give them a bottle of ink.

So when CSUSA gives you a discount, you expect to get the same discount the next time you buy from them??? Not unless you catch another sale....

there's a difference between a "discounted" price and a "sale" price.

Actually there is not....we call it a discount (usually) when we attach some condition i.e. quantity, senior citizen, etc. but to the buyer it's the same thing. And many of the "sales" at various vendors her are referred to as discounts.

 

[Frank Nemke sr]

Sorry

What do you do/say when a potential customer asks you to lower your price for pen? How flexible should prices be? I think i charge a fair price and potential customer agrees it's worth the asking price, but came back to say he didn't buy because i wasn't flexible enough on price! Just curious about how others would handle a similar situation.

TIA for your feedback

Jennifer

Sorry ,but I didn't figure enough of a margin in tobe able to discount.

 

[edicehouse]

This almost reminds me of a time when I worked at Circuit City. They had a deal where if you find the same item at a lower price in stock they will give you the difference and 10% of the difference. Well a customer came in for an ink cartridge and they said office max sells them for a dollar less, so we have to get the manager to do the price adjust well it rang up for $1.10 different. The customer said that isn't worth it, so they are going to go to office max and give them their business. I told them that is fine, if there is anything else I will be glad to help them out. Keep in mind I have helped this person several times and they are very quick to quote our store policy on things. Well they came back about half an hour later and Office Max was out of the ink, so I rang it up and they asked for the discount, I told them "Well you know the policy it is same item in stock at a local store." You stated Office Max does not have it in stock so the price is..... We were comission there at the time, well if someone makes a return we lose the comission. They would often come in, buy something that paid me decent, and on the 29th day return it, and argue the restocking fee with management, because the counseler did not go over return policy, I started putting the comment on the ticket that "return policy was covered with customer and they stated they understood it"

I know it's not really related but thought it was funny.

 

[The Penguin]

When you give a discount; That customer will always expect a discount from you. Do you want to start down that road?

Give them something extra. such as if a customer buys a 300 dollar fountain pen from you give them a bottle of ink.

So when CSUSA gives you a discount, you expect to get the same discount the next time you buy from them??? Not unless you catch another sale....

there's a difference between a "discounted" price and a "sale" price.

Actually there is not....we call it a discount (usually) when we attach some condition i.e. quantity, senior citizen, etc. but to the buyer it's the same thing. And many of the "sales" at various vendors her are referred to as discounts.

I disagree.

IMO, discounts are asked for by the customer, or earned by some stipulation of the retailer: quantity, etc.

so if you call CSUSA and order $1000 in items, they give you a discount.

But if CSUSA send you an email that says "XYZ Widgets" are on sale this week...there is a difference.

splitting hairs, but there is a difference.

 

[Smitty37]

When you give a discount; That customer will always expect a discount from you. Do you want to start down that road?

Give them something extra. such as if a customer buys a 300 dollar fountain pen from you give them a bottle of ink.

So when CSUSA gives you a discount, you expect to get the same discount the next time you buy from them??? Not unless you catch another sale....

there's a difference between a "discounted" price and a "sale" price.

Actually there is not....we call it a discount (usually) when we attach some condition i.e. quantity, senior citizen, etc. but to the buyer it's the same thing. And many of the "sales" at various vendors her are referred to as discounts.

I disagree.

IMO, discounts are asked for by the customer, or earned by some stipulation of the retailer: quantity, etc.

so if you call CSUSA and order $1000 in items, they give you a discount.

But if CSUSA send you an email that says "XYZ Widgets" are on sale this week...there is a difference.

splitting hairs, but there is a difference.

Lets see if I say "during the month of August I will sell XYZ at a 10% discount" That is different than if I say "SALE -- item XYZ's price is reduced 10% during the month of August". I somehow think they both say exactly the same thing with regard to the price of item XYZ.

Discount is any reduction in price for any reason including both conditional and non-conditional reductions.

 

[kovalcik]

I give discounts to teachers, those buying multiple items, or anyone in uniform. I don't advertise the discounts and have never been asked, I just mention it to the people who come up who seem to fit the bill. I once sold a nice Euro pen for $10 to a 10 year old girl who was buying it for her teacher.

If someone asked for a discount without giving me a good reason I would counter with they can have a discount if they buy multiple items.

 

[Russianwolf]

I only sell at shows. And every time I read a discussion about pricing and the formulas many people use to set prices, I have my belief confirmed that my prices are considerably higher than many others. I have some room to lower prices and still be profitable.

I give discounts when I need to. I don't like it, I wish it wasn't necessary, but reality is that promotional pricing drives sales. When someone asks for a better price, we discuss it and usually they get some form of a better deal. Most of the time I manage to rescue the sale by throwing in something free instead of lowering a price.

Buyer: "$195 for this fountain pen is a little steep, can you give me any better deal."
Me: "Sure, I'll throw in that stylus your wife is looking at for no charge."
Buyer: "Deal."

He is happy, I'm happy because I sold a pen and I would have had to give at least a 10% discount which would have been about $20, but the parts for the stylus only cost me $2. Extra refills, free ink, a nice gift box, even a cheap pen or pen holder is a nice give away. The buyer sees the full price of the free product, but I know my out of pocket is not much.

Saying "take it or leave it," would give me some satisfaction, doing some creative discounting generated money to pay the bills.

How much are you into the $195 Fountain Pen for in parts, etc? $30?

What is your asking price for the stylus? $20?

Giving a $20 discount on the one may be the same as giving the other for free if they both took a potential $20 from your pocket.

I think we should do what the big retailers do. Increase our prices by 100% then offer a 25% discount and let them haggle us to a 50% discount.

So $100 Original price) +$100 (markup) = $200 - 25% ($50) = $150 and if they haggle well $200 - 50% ($100) = $100 (back to original price)

 

[Smitty37]

I think we should do what the big retailers do. Increase our prices by 100% then offer a 25% discount and let them haggle us to a 50% discount.

That's the ones who are being kind...mark ups (particularily in jewelry) can be 200% buy for $100 - list for $300 discount 50% and still have 50% markup. When my kids were in school one of the classes or clubs always had a magazine sale and one year I bought a magazine called "Opportunity" or some such name that was basically a magazine aimed at people who wanted a ''little business on the side". The advertisers in the magazine (and it was virtually all advertising) frequently sold the items with price tags afixed that indicated a price 3 times what you paid. Furniture is much the same way when you buy a chair at 50% off the retailer is still making a lot of mark-up and when you pay full price he's in hog heaven.

 

[BSea]

It's always been my method is to give a discount if the buyer bought more. For example: He wants a discount on a higher end pen. I say I'll take off X% if he buys a slimline too. And the discount applies to both pens. Of course you could offer anything else you're selling. Basically, "I will if you will".

 

[raar25]

Answer: thankyou for your interest in my handcrafted items. I put alot of care and effort into my craft and feel very confident that the prices I am charging are fair. I wish you the best of luck finding what you are looking for. Then move on to the next customer.

I had one customer do try than at the last craft show and I got a good laugh when his wife hit him and walked away because she was embarrased.

Note I always keep a $5 discount in my pocket for those customer who want to buy more than one. For those customers I make the offer, since you like them both so much I will knock $5 off.

 

[edicehouse]

I guess to sum up what just about everyone is saying, they end up doing what they feel comfortable with. Some will give away a $5 item, but not offer a discount, or offer a discount. I am sure there are some that they would not give a free sheet of paper away. It boils down to with you are the boss and have to make your own decisions.

 

[Hoover015]

Pen Prices

If you are charging what you believe is a fair price, then you should stick to your asking price. I have a small shop in Texas and have been at it going on three years. I have made and sold a couple thousand pens and have never had anyone ask for a lower price. I have quite a few returning customers that I will give a small discount because of their continued business. I do believe that we live in a world where pretty much everything is over inflated, so people will try to get something at a lower price because they think that it is over priced or they just want to haggle.

Gary

 

[GoodTurns]

When you give a discount; That customer will always expect a discount from you. Do you want to start down that road?

Give them something extra. such as if a customer buys a 300 dollar fountain pen from you give them a bottle of ink.

Exactly how I handle it...nothing in writing like "Free ink with purchase"...just an added step at "check out"..."What color ink would you like...my treat?" Minimal cost vs the value of the sale, no expectation, just a happy (and more likely to repeat) customer. I will happily pay $10 to have a proven buyer come to my booth...