Wednesday, August 04, 2010

Good Deals-Discounts

Can you really afford to give your client a discount ? Selling a service is not like selling a car or a chair where most of the costs of products are known. A service is almost open ended, unless you can specify very tighly in your contract/proposal. I think we should only give discount to a well defined scope. In order to get the discount the client needs to play a part like for example paying cash ahead of the project . 

For Example:

Scope:  Preliminary Planning Research for a restaurant

Senior architect: 6 hours @ $120 per hour 
Junior Architect: 2 hours @ $80 per hour
Adminstration: 2 hours @$60 per hour.

Drafting: To be determined if required.  Drafting @ $40 per hour
Printing to be billed at cost if paid within 7 days

Proposed Time : 10 hours
Total: $1000 
10% discount if all are paid up front.

So if the client wants to save $100. Ask them to pay up front. If not , break down into 2 payments the most for a small scope like this one.

A discount is not free. It should be in exchange of something that is valuable to your firm.