The Danger of Unplanned Discounts
Clients frequently ask for discounts, and saying yes too quickly can damage your profitability and establish a low perceived value for your work. To offer discounts safely, you need a strategic approach that protects your bottom line.
Best Practices for Discounting Safely
- Reduce the Scope, Not the Price: Never lower your price for the same amount of work. If a client has a lower budget, remove specific features or deliverables to match that price.
- Bundle Services: Offer a discount only if the client commits to a larger volume of work, such as a multi-month retainer or bundling multiple services together.
- Introduce Early-Payment Incentives: Offer a small discount (e.g., 2%) if the client pays the invoice immediately or within 5 days, which improves your cash flow.
When to Say No to Discount Requests
Protect Your Minimum Acceptable Rate
Know your baseline operating costs. If a discount request pushes your hourly earnings below your minimum acceptable rate (MAR), politely decline the project.
Beware of Empty Promises
Avoid giving discounts based on promises of "future work" or "exposure." Real professional clients value quality and are willing to pay standard market rates for it.
