Tuesday, February 1, 2011

A little more...or a little less. To discount or not to discount

Every now and then, I have the rare opportunity to spend some time browsing the posts on the face painting forums, such as the Snazaroo forum or Cindy Trusty's Body Painting Forum. I saw a post this week that seemed relevant to a problem that many of us suffer from.

It happens all the time...You get someone on the phone who wants to hire you, but they want you to give them a discount. Sometimes it's a cultural thing, sometimes it's a bonafide budget issue, but sometimes it's just the nature of the person calling....they have to get a deal on everything. I don't know why these same people feel that it's okay to bargain with people in the face and body art industry, but they would never (I think) go into a hair salon and ask for a deal. Maybe salons suffer from the same problem too though. So you have to decide whether or not you want to give them a discount. Maybe you are desperate for work and need to do what's necessary to get the gig...but be sure to think of the repercussions of discounting your services.

#1 You are cheapening the value of what you do. You are a trained professional, you many put hours into your business besides just the hours at the actual gig, and not everyone can do what you do. You paid good money for the best and safest supplies and equipment available. You pay for marketing materials, advertising, and office supplies.

#2 The only "exposure" you get from these discounted gigs is when the organizer tells all their buddies that you're willing to discount your rates. And they expect you to give them a discounted rate the next time they call.

#3 You may end up having to turn down a client who would have paid you full price because you booked yourself to do the discounted event.

So what are you to do when someone asks you for a discount and you feel like they are simply not willing to pay the posted price for the services requested? It's been my experience that customers place more value on receiving something extra than they do on receiving a discount. Depending on the gig that you're proposing to do, perhaps you can explain to the client, "I'm sorry, but we can't discount our rates because it's unfair to our regular clients who pay full price, but I'll tell you what I can do for you..." Decide what you can afford to offer the client...and personalize it to their needs.

For example:

A mom organizing a birthday party with 8 kids may not need extra time from you, but maybe they would appreciate a CD with photos that you've taken of each child that you painted.

A mom calling for a batmitzvah may not be interested in any sort of party favors or photos, since they have already purchased party favors and hired a photographer, but maybe they would appreciate an extra half-hour of your time for free.

A non-profit event organizer would probably appreciate an offer to bring along a teenager who can quickly do little tattoos while you do the more elaborate face art.

A corporate event organizer would probably appreciate you offering to create a stencil of their logo and tattooing their staff 15-30 minutes before the event starts.

The key is that you want to be appreciated for what you're offering. You don't want the clients to think that you're anything less than professional and worth every dollar that you charge. You have to keep in mind, that while some industries suffer in this economy, luxury items and services usually do not suffer. And what we offer is a luxury service