How to Handle Discounts and Free Collaborations as a Service Provider
Episode 691: Show Notes
The festive season is upon us! And for service providers that means navigating the immense pressure to take part in retail-centric holidays like Black Friday Sales. In today’s episode, we answer some of the most common listener questions that come up over the holiday season. Like how to handle pressures around Black Friday Sales, when to allow discounts, when free collaborations are worth it, and whether you should work with friends and family.
It may seem like the benefits of some of those things are worth it, but they also come with plenty of hidden costs. Tuning in you’ll hear us share some of the key things we’ve learned from working with relatives, taking part in Black Friday sales, and offering our services for free. These things are a lot more complicated than they seem at first glance! Today’s episode is all about uncovering the true cost of these kinds of discounts, optimizing your price plans, and learning how to give your time the value it deserves. Because if you’re going to spend time away from work, we want it to be spent regenerating and being present with your family, not chasing false leads!
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How We Feel About Black Friday Deals
If you’re feeling pressured to take part in Black Friday, we want you to take a step back and consider a few things. The first is that service providers are situated in a unique pocket within the industry. And if you work with one-to-one clients, that requires an entirely different game plan to those working in the one-to-many sector. As a result, the pressure you’re feeling to take part in Black Friday may not even be relevant to you!
If you’re a retailer, however, meaning you have physical products, it’s a slightly different story. There will be some level of expectation that you would have some sort of sale, discount, or coupon. For you, creating a bundle or a discount is a really savvy business decision. But for those who don’t fall into this category, we want to offer an alternative strategy. We believe that you don't need to take part in the charade just so that you can fit in with what the rest of the market is doing. It’s exhausting! Instead, you can take the time to recoup. Spend time with your family, enjoy the break, and come back in December and say you're booking for the following year.
What to Know About Friends and Family Discounts
When it comes to working with friends and family our advice is to proceed with caution! It may sound harsh, but when you work with friends and family it almost always means that you will need to put in extra time and effort. This is also why we also advise against giving friends and family discounts (if anything, you may want to charge more). Part of the reason for this is that because you are on such familiar terms with your friends and family, they may feel one step too comfortable asking for constant revisions and making demands on your time. They’re also less likely to pick up their phone when you need information from them, which can be incredibly frustrating and cause further unwanted delays. So while not every instance of working with friends and family may be painful, it’s important to take into account what could take place, and decide whether the risk is worth it and how you can prevent the most frustrating pitfalls that come with the territory.
When To Use Bulk Discounts
How to handle discounts is a question that comes up quite a lot with our clients. Many of our listeners also work with clients whose package remains the same but could become bigger depending on the situation. We only really think discounts make sense in situations where it’s on a massive scale. How you approach your discount will depend on your business and your service. You’ll want to take into account a set of variables, like the number of people needed for the job and how you want to charge. But you should never feel pressured to create a discount if it doesn't make sense for your business and your profit margins!
Finding Value in Free Collaborations
When you’re in the early years of your business, free collaborations can seem like an excellent, low-cost, method for gaining exposure and signing new clients. And it can be a great strategy for getting your name out there and promoting yourself. The problem is that often the payoffs of free collaborations are purely hypothetical. Without a contract and clear stipulations, you could put in days of work without getting a tenth of what you hoped for. Instead of hoping for the best out of your collaborations, ask yourself what boundaries you need to set in order to feel comfortable with the work you’re doing and determine concrete things that you can get in return for your services. That way you lower the stakes and anchor your expectations in what can realistically be delivered!
Quote This
I want to give you a license to fully step away. Just check out and enjoy the time with your family and be present.
Highlights
How We Feel About Black Friday Deals [0:05:48]
What to Know About Friends and Family Discounts [0:11:50]
When To Use Bulk Discounts [0:16:25]
Finding Value in Free Collaborations [0:24:11]
Today’s Guest:
Abagail & Emylee
The Strategy Hour Podcast
We help overwhelmed and creative entrepreneurs break down their Oprah-sized dreams to create a functioning command center to tame the chaos of their business. Basically, we think you’re totally bomb diggity, we’re about to uplevel the shiz out of your business.
Key Topics:
Discount, Value, Margins, Collaboration, Working with family, Black Friday
