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Do You Discount to Friends and Family?

Discussion in 'General Entrepreneur Discussion' started by tiagosoares17.22, Aug 19, 2018.

  1. tiagosoares17.22
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    tiagosoares17.22 Bronze Contributor Read Millionaire Fastlane Speedway Pass

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    I am curious to know your opinions on discounting to family and friends. This is something I have been thinking a bit lately since I have many friends and family wanting to try the product.

    Do you do it? If yes, why? If not, why?

    I appreciate the replies.

    (I'll share my thoughts on it later.)
     
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  2. Andy Black
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    Andy Black Any colour, as long as it's red. Staff Member Read Millionaire Fastlane FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR

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    Yes, because I start with the people closest to me before going to people who aren’t family and friends. (See the Mother Theresa quote in my signature.)

    Also, some of those family and friends will buy to support you rather than because they really want your product or service. I don’t want them out of pocket too much because of that.

    And finally, if my business can sustain it, then being able to help my friends and family is one of the main reasons I’m in business. IF discounting the price will help them then I’d like to. (Note that sometimes discounting won’t help them because they’re less inclined to use the product.)

    I take sales and feedback from family and friends with a pinch of salt. They’re often trying to help and provide support. Only a few will provide the constructive feedback you’ll need to improve your product or offer.

    Just my 2c.


    EDIT: Give them a discount code? I’ve found some people don’t want to use the code if you’ve already been a great help to them. That happened with my course ... an Insider took it and didn’t want to apply the $100 discount.
     
    Last edited: Aug 19, 2018
  3. Fotis
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    Fotis Bronze Contributor Speedway Pass

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    Used to, but no more.

    Paying full price makes sure they appreciate the product/service. I've even seen it on myself - when I buy discounted stuff I don't use them that much, or at all.

    The above applies to tested products/services.

    If I was making something from scratch, I'd offer a discounted price (and in general, try to sweeten the offer as much as possible) just like Andy says above.
     
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  4. Longinus
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    Longinus Platinum Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

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    I made websites for free for my family, just asked the costs needed to make it.
    Also gave away some of my products.
     
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  5. WJS
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    WJS Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED Speedway Pass

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    I would say --------- It depends.

    It depends on what kind of people your friends and family members are. If they are the loving, encouraging and positive kind of people then by all means go ahead.

    If they are those that put you down, take advantage of you and are skeptical of your ability to be successful then it's a big NO. I won't even mention whatever it is that I'm doing.

    The same goes for money. Would you lend money to your friends and family members? It really depends on what kind of people they are. Hope it helps.
     
  6. minivanman
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    minivanman Gold Contributor Speedway Pass

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    I try not to mix business with family and or friends. But, on the rare occasions I have, the price is $0. That way they don't have any room to complain about anything. As far as making a website for a family member, I try to encourage all of my family members to be in business for their own self and I will volunteer to make them a website if they want one. Back when I had my cleaning business I also had a rule that went something like this... I don't remember if it was 1 or 3 but we did not clean for anyone within 1 or 3 blocks of where I lived.

    As for money, should a person ever loan money? NO! Either give that person money or not but never loan it.
     
    Last edited: Aug 19, 2018
  7. Andy Black
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    Andy Black Any colour, as long as it's red. Staff Member Read Millionaire Fastlane FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR

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    You’ve reminded me that when I do discount for family and friends it is often to make it free.
     
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  8. Mattie
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    Mattie Platinum Contributor Speedway Pass

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    I prefer not to involve friends and family. This comes from watching my friends do the same with their entrepreneurship. I believe if you know of their product and might find a need for it naturally you will first see what they can contribute, but there are many other opportunities with similar products they might no carry or hold themselves. I don't believe you even really pay that much attention to your family building a business anymore then they do you when they're building their company. You might hear about it in a discussion, observe it, but not necessarily ever involved in the situation.
     
  9. JasonEP
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    JasonEP Contributor Read Millionaire Fastlane I've Read UNSCRIPTED

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    Yes I will give discounts to family and friends, even for free if I can.

    The reason is because some of the best referrals you will get will come from family and friends. They genuinely want to help and are usually your best supporters. When they truly believe in you they will tell people they are close with about you and your product/service and get you the best quality leads or referrals.

    I'm willing to lose $x by not charging a friend that I know will be able to refer me $4x the amount of business I normally would have charged them.
     
  10. JScott
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    JScott Legendary Contributor FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR

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    I never discount -- I either give the product away for free (which I'll typically do for friends/family) or I'll charge full price.

    Discounts are a hybrid transaction -- part personal gift and part business transaction. I don't like to mix personal with business, so it's either one or the other.
     
  11. Real Deal Denver
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    Real Deal Denver Gold Contributor Read Millionaire Fastlane I've Read UNSCRIPTED Speedway Pass

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    This is a tough one for me @JScott. I too would like to give my services away for free. I have not in the past because I really needed the money. I wish I could have, as I am naturally a generous person.

    My wife takes a practical approach to this - and it was her family that this issue came up with. She said that this is my business and that is how we pay our bills, and people should understand it. If we're out, I'll pick up the tab - that's one thing - but business is business - that's something different.

    I charged one guy in her family full price three times. I wanted to give a discount, but couldn't. We are are super good terms - this guy is more than a brother to me - he's like my Siamese twin that was separated at birth. He did ask for a discount, and I explained to him that I could not do it. I will feel bad about this the rest of my life - but I do pick up the tab for food, drinks, whatever, almost all the time.

    When I am wealthy, I'll make up for it. I'm thinking of a couples cruise (me, wife, and him and wife) which I will gladly pay for.

    In the end, he completely understood and accepted the situation, which I'm very thankful for. He did get superb first class service all the way, and came out with a "deal of a lifetime" because I had a lot of inside information - so he definitely got his moneys worth. I think that's why we're on great terms - I swam an ocean for him. But still... I sure would feel better if I could have worked for less, or even free. There are more important things in life than money. But being poor and hungry does have a way of refocusing your priorities.

    All will be well and good when we take that cruise (and I don't cruise cheap - it's deluxe and first class all the way!)
     
  12. tiagosoares17.22
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    tiagosoares17.22 Bronze Contributor Read Millionaire Fastlane Speedway Pass

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    Now my two cents on my own question, and how I have been dealing with it.

    Time has taught me that making discounts can be extremely dangerous, even for family and friends. That way, they will always expect a discount, and every time they purchase something again, you don't feel very good to charge more this time.

    Since I don't want to enter the game of discounting, what I have been doing is to charge FULL PRICE but I always give them FREE EXTRA product - not exactly the same one, but a similar one related with their purchase.

    So far, I don't know if this is the best strategy, but it is what I believe to be. The reason is because I want to keep away people who don't fully appreciate the product, and that in the end, might happen to even talk bad about it!

    That's the last thing I want: someone talking shi* about something that they don't even appreciate in the first place.
     
  13. Stargazer
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    Stargazer Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

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    No because I have never discounted anything to anyone ever as there is no need to.

    If someone I know wants what I have then they are going to get something similar from someone anyway. So if what I have does what I say and is better value they will have no problem paying full price.

    However...

    If I was selling some wine for example then sure, I would give a few bottles away as per JScott

    So it rather depends upon what it is.

    So I don't know what you are going to be selling or why your friends want to try it.

    These are the factors I would be using to determine free or full price. (You don't need to tell just they are the factors for me)

    Dan
     
  14. ChrisR
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    ChrisR Diamond Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

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    We only have a couple products but I definitely give them away for free to friends and family.

    I do it because I like taking care of them when I can.
     
  15. minivanman
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    minivanman Gold Contributor Speedway Pass

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    And just a few minutes ago the mother-in-law asks about a washer & dryer and how much I'd charge her. Luckily I have a brand new set that she will be getting, free of course.
     
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