Photography News

How Should You Respond When a Customer Asks for a Discount

July 15, 2016 by Rene Anthony

Most, if not all of us, are guilty of it from time to time. Whether it’s an application for a mortgage, the purchase of a vehicle, flights and accommodation, internet and mobile phone bundling, or other big ticket purchases – we’re often on the lookout for a discount. After all, who doesn’t love a bargain!? But when the shoe is on the other foot and your customers, whether they be repeat or potential customers, begin to ask for discounts, how should you respond?

 

First, it’s important to adjust your expectations to anticipate such requests. Don’t view them as a way for clients to diminish your work – after all, repeat customers certainly value it more than anything or else they would not return, and potential customers would be none the wiser. Instead, understand that it’s not unusual for customers to operate with a mindset where they try to exit a transaction with a superior value offering.

 

Of course, finding the right price for your services is difficult, particularly in the photography industry where there is significant competition. Even when you think you’ve offered a great value proposition, there will always be someone else out there with different expectations. However, while photography customers often don’t realise or admit it, they’d much prefer great service or photos than the cheapest outcome.

 

With expectations adjusted, photographers should establish their policy. As a business owner, it’s important to have clarity on how you will consistency manage your operations and pricing. This policy might, for example, be a blanket ‘no discount’ policy, or could be a ‘selective’ approach based upon the context – repeat customers, disappointed customers, friends or business partners, etc.

To help you gauge the particular context, it helps to turn the question back towards the customer. Without being patronising, establish what their motives are in asking for a discount. Are they asking because they want to save money? Do they represent themselves as loyal customers, or those with a pipeline of work ahead? Could they enhance your value proposition by offering something (e.g. publicity) in return?

 

When answering, one should project themselves as being confident and firm in their answer. Come across as unconvincing and the customer may continue to push the matter further. With this in mind, it is likely said customer is making their decision with pricing being the key factor and is bargaining with other photographers. All in all, this may result in: considerable dialogue for little reward; unrealistic expectations; and the start of a working relationship that doesn’t invoke the strongest degree of loyalty.

 

On the other hand, a poised and assured response when declining the request reinforces to customers the value you place on the quality of your work, while keeping the work the focus of the conversation – rather than price. Additionally, it could also save you a lot of inconvenience in dealing with the customers mentioned above who ‘shop’ almost exclusively according to the lowest price.

Remember however, any discounts you do decide to grant a customer have the potential to set a precedent. Taking this into consideration, make it clear when offering discounts that they have been provided on the basis of certain circumstances, rather than an impulsive decision. As an alternative, if a monetary discount still doesn’t feel right, you can consider offering ‘additional’ value to the customer by way of further services – more shots, framing, etc.

 

The decision on whether to offer customers a discount is a personal business decision. For some photographers this decision may come more easily, while for others there may be plenty of reasons to refrain from offering a discount. If however, you do fall into the first category, realise that you don’t need to consider compromising on price for every customer who asks – only consider it when context permits you.

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