June 1, 2020 • 10 mins
Question: "How do you manage pricing for friends, especially those you want to help but know can’t pay full price?"
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Corey Winter (00:01):
Welcome to 10 minutes to being boss, a bite
size show for creative businessowners where we give you
actionable insights, tools andtactics. I'm Korea winter. And
here's your host Emily Thompson.
Okay, Emily, I have a questionfor you. And it's something
that's actually recurring in mylife as I've been taking on more
client work. But this isactually a question I got from
(00:23):
the community. And it is how doyou manage pricing for friends,
especially those that you wantto help? But you know, they
can't pay full price?
Emily Thompson (00:35):
Tell us all this time, I daresay. Right, I've
gotten this question a milliontimes. And it is something that
I mean, I think we all strugglewith it. Anyone who has a
business struggles, especiallyanyone who has a business and
wants to help people struggleswith the idea of giving,
especially friends and or familydiscounts to what it is that
(00:59):
they provide. I think with thisquestion, in particular, I need
to start with mindset. Becauseyou said, helping those that,
you know, can't pay full,
Corey Winter (01:13):
like I know. And one example and my personal
life, there's a friend that Iwant to build a new website for,
because she's an amazing artist,and she wants to start selling
her artwork. But she's juststarting out, she has no money
at all. And I know that forsure. So I want to help her. But
I also don't want to spend 4050hours building her website if
(01:34):
I'm not going to get anything inreturn.
Emily Thompson (01:35):
Right? I heard that you did good feelings don't
count. And actually in that,that's even part of my answer,
which I will get to in a second.
So okay, I think there is adeserving people that you know,
cannot pay you. And people thatyou're just assuming, cannot pay
you. So they that sort of themindset shift that anyone to
make who's dealing with this isthere's difference between
(01:57):
thinking people can't pay youand knowing and if you think
they can't pay, you actuallydon't know. So don't make the
never make that assumption, it'sa very bad habit to get into
whenever it comes to selling. Sofirst, check your mindset and
make sure. Next up, let's saythat you someone is in your
case, or you let's say are inthis this case where you know,
(02:17):
someone cannot pay, and youreally do want to help them.
Like there are a couple of waysthat you can go at this and
going to that good feelingsthing. One way to think about
this is what non monetarybenefits can you get from doing
this project? We often think ofbusiness very specifically, and
we should because that's whatbusiness says. But we think of
(02:39):
it, and they sort of action oran exchange of value and when
one way or the other. Butusually one way is in receiving
or the exchange of money. Youcan exchange other things as
well. Let's say this friends hasthis friend has chickens. And
you want
Corey Winter (03:00):
why is that the metaphor you're going?
Emily Thompson (03:03):
Oh, no, he just came to mind, I need to do some
grocery shopping. Um, let's saythat your friend does have
something that you should justsay you can't barter. It doesn't
have to be you could be a nicechicken dinner. It doesn't have
to be money, there can beexchanges of other things in
these situations. The ideathough, is to still make it an
(03:25):
equal value transaction and oneway or the other. bartering is
still alive. And well. And Ithink in these times may
actually end up becoming more ofthe norm, which I'm totally down
for. I've always, I've alwaysthroughout my career, and even
now have some relationshipswhere I'm bartering in non
traditional ways. I have somelong term bartering
(03:48):
relationships with some vendorsand things that just work out
really well with everyone.
Because if he is an equal tradeof value, so consider that
consider what other things canbe traded that isn't cash money.
Another thing to consider is toset a specific discount for your
friends and or family. That wayit's just standard, it can be a
(04:12):
standard thing that you justsort of give out. No matter what
it is that you do what it isthat yourself set that rate,
whatever it may be, and eitherthey can make it or they can't.
But choosing a set discount canbe a really easy way to sort of
go at these conversations andsomeone's like, I really want
you to do this thing for me andbe like You know what, you're
your friend. So I'm going togive you a 30% off discount or
(04:33):
whatever it may be as a tip heretoo, is to always invoice them
to show the discount so invoiceas usual, but show them the
discount that they that you'regiving them so that they
understand that exchange ofvalue. This was our this
conversation has been had in thecommunity. And one boss had a
(04:54):
really great idea. She's adesigner and she came in and
said that one way that she'sheard of doing this is to offer
discounts. But say that inexchange for those discounts,
you get 100% creative freedom,which I think is quite an
interesting the I'm not reallysure how that will work. But the
(05:14):
idea here is that you can makethese arrangements look like
whatever you want, especially inthis sort of design realm where
like, I often find thatdiscounted or free design
projects are usually the mostdifficult like these are going
to be the people that are goingto be the most nitpicky, they're
going to come in and have themost edits, more so than any of
your, like best paying clients,or sometimes worse paying
(05:36):
clients, these people are goingto far exceed those. So a way to
combat this is do require 100%,creative freedom, even create
something for them, give it tothem, they like it high five, if
not, they can go pay someoneelse to do it, which I think is
an interesting and interestingidea. I also want to say that if
you are but if you are wantingto do projects like this, it's
(06:01):
very important not to hurt yourbusiness in the process, which
can be a very easy thing to do.
So it's very smart to createsome boundaries around you
offering discounts, ordiscounted services or products
to friends and family. So guesswhat, you have that set
(06:23):
discount, that's a nice littleboundary. And people can use
that as they wish. We've donethis. I've done this with
product things before for sure.
You can also do this withservices. But especially with
services, think about how it isthat you can put some boundaries
on that. So that let's sayyou're only doing one discounted
project per quarter, or port permonth, or whatever it may be so
(06:45):
that you are not sort of workingat a discount always. So if
let's say your mom comes, she'slike, Hey, can you also make me
a website, but like, sorry, mom,or maybe this should actually
let's say you're doing one foryour mom, let's actually not
make mom a part of this at all,at all. Let's see, friend number
one comes around and they'relike, I need a website, you
decide to do it for a discountfor number two comes around, and
(07:07):
they're like, I need one to alsoa discount. Instead of doing
both of those at the same time,push the second friend off to
the next quarter. That way,you're not really taking a huge
hit across your entire businessby doing too many discounted
projects.
Corey Winter (07:24):
For your friends.
My mom comes along I'm notsaying oh my mom.
Emily Thompson (07:28):
I know. I know.
That's why I took mom out ofthis a whole different set of
rules apply to mom, for sure,for sure. And then I also want
to say that if you have if youare struggling with people
coming to you asking fordiscounts, you can say no. You
can say no to any friend, youcan say no to any family member,
you could probably even say noto your mom.
Corey Winter (07:52):
Okay, so quick follow up, man, how do you say
no to your friends withouthurting their feelings?
Emily Thompson (07:59):
You have no control over their feelings?
Number one, that's a veryimportant thing to understand.
You could say yes or no. Andtheir feelings are on them.
100%. I love and this is what Iactually learned from Kathleen,
I love replying with I justdon't have the bandwidth right
now. Or I don't have room for itin my schedule, or whatever it
(08:20):
may be so that you are not it'snot that you're making a
decision is that your businessor your current project load, or
whatever it is, is actuallymaking this decision for you. I
mean, that's probably one of theeasiest tactics. You can also go
further like if it's if you aresaying no, because you don't
think you're the right fit. Tellthem that be like, you know, I
(08:42):
know that I design websites, butI actually have no idea how to
use this platform that you'rewanting to use, or I have no
experience working with yourkinds of businesses, or whatever
it may be, you can actually givethem a good reason why it is
that you're saying no. So Ithink those two things are my
biggest tips. You can also justlike know as also a full
sentence. And then theirfeelings are on them. You can
(09:08):
then buy them a cocktail.
Corey Winter (09:10):
Or you can even once they do go and find someone
else to do the thing for them,you could support it once it's
live,
Emily Thompson (09:18):
for sure. And I mean, that's the thing to feel
free to recommend them tosomeone else, whatever it may
be. Regardless, this can be asticky situation, but doesn't
have to be and I think the keyhere is to be proactive. I think
about any sort of boundaries ordiscounts you can go ahead and a
lot to these things prior tothis. Consider other things in
(09:40):
your life that you would takeinstead of money, whether that
be eggs or art, whatever it maybe, because I think there's some
interesting opportunities thereas well.
Corey Winter (09:53):
Have questions I'm looking for answers. Join bosses
from around the world in thepain boss community and be a
part of an ongoing Congress.
about cultivating a bossmindset, creating healthy
boundaries, some real life,business tactics and more, learn
more and join us at being bossclub slash community.
Welcome to 10 minutes to being boss, a bite
size show for creative businessowners where we give you
actionable insights, tools andtactics. I'm Korea winter. And
here's your host Emily Thompson.
Okay, Emily, I have a questionfor you. And it's something
that's actually recurring in mylife as I've been taking on more
client work. But this isactually a question I got from
(00:23):
the community. And it is how doyou manage pricing for friends,
especially those that you wantto help? But you know, they
can't pay full price?
Emily Thompson (00:35):
Tell us all this time, I daresay. Right, I've
gotten this question a milliontimes. And it is something that
I mean, I think we all strugglewith it. Anyone who has a
business struggles, especiallyanyone who has a business and
wants to help people struggleswith the idea of giving,
especially friends and or familydiscounts to what it is that
(00:59):
they provide. I think with thisquestion, in particular, I need
to start with mindset. Becauseyou said, helping those that,
you know, can't pay full,
Corey Winter (01:13):
like I know. And one example and my personal
life, there's a friend that Iwant to build a new website for,
because she's an amazing artist,and she wants to start selling
her artwork. But she's juststarting out, she has no money
at all. And I know that forsure. So I want to help her. But
I also don't want to spend 4050hours building her website if
(01:34):
I'm not going to get anything inreturn.
Emily Thompson (01:35):
Right? I heard that you did good feelings don't
count. And actually in that,that's even part of my answer,
which I will get to in a second.
So okay, I think there is adeserving people that you know,
cannot pay you. And people thatyou're just assuming, cannot pay
you. So they that sort of themindset shift that anyone to
make who's dealing with this isthere's difference between
(01:57):
thinking people can't pay youand knowing and if you think
they can't pay, you actuallydon't know. So don't make the
never make that assumption, it'sa very bad habit to get into
whenever it comes to selling. Sofirst, check your mindset and
make sure. Next up, let's saythat you someone is in your
case, or you let's say are inthis this case where you know,
(02:17):
someone cannot pay, and youreally do want to help them.
Like there are a couple of waysthat you can go at this and
going to that good feelingsthing. One way to think about
this is what non monetarybenefits can you get from doing
this project? We often think ofbusiness very specifically, and
we should because that's whatbusiness says. But we think of
(02:39):
it, and they sort of action oran exchange of value and when
one way or the other. Butusually one way is in receiving
or the exchange of money. Youcan exchange other things as
well. Let's say this friends hasthis friend has chickens. And
you want
Corey Winter (03:00):
why is that the metaphor you're going?
Emily Thompson (03:03):
Oh, no, he just came to mind, I need to do some
grocery shopping. Um, let's saythat your friend does have
something that you should justsay you can't barter. It doesn't
have to be you could be a nicechicken dinner. It doesn't have
to be money, there can beexchanges of other things in
these situations. The ideathough, is to still make it an
(03:25):
equal value transaction and oneway or the other. bartering is
still alive. And well. And Ithink in these times may
actually end up becoming more ofthe norm, which I'm totally down
for. I've always, I've alwaysthroughout my career, and even
now have some relationshipswhere I'm bartering in non
traditional ways. I have somelong term bartering
(03:48):
relationships with some vendorsand things that just work out
really well with everyone.
Because if he is an equal tradeof value, so consider that
consider what other things canbe traded that isn't cash money.
Another thing to consider is toset a specific discount for your
friends and or family. That wayit's just standard, it can be a
(04:12):
standard thing that you justsort of give out. No matter what
it is that you do what it isthat yourself set that rate,
whatever it may be, and eitherthey can make it or they can't.
But choosing a set discount canbe a really easy way to sort of
go at these conversations andsomeone's like, I really want
you to do this thing for me andbe like You know what, you're
your friend. So I'm going togive you a 30% off discount or
(04:33):
whatever it may be as a tip heretoo, is to always invoice them
to show the discount so invoiceas usual, but show them the
discount that they that you'regiving them so that they
understand that exchange ofvalue. This was our this
conversation has been had in thecommunity. And one boss had a
(04:54):
really great idea. She's adesigner and she came in and
said that one way that she'sheard of doing this is to offer
discounts. But say that inexchange for those discounts,
you get 100% creative freedom,which I think is quite an
interesting the I'm not reallysure how that will work. But the
(05:14):
idea here is that you can makethese arrangements look like
whatever you want, especially inthis sort of design realm where
like, I often find thatdiscounted or free design
projects are usually the mostdifficult like these are going
to be the people that are goingto be the most nitpicky, they're
going to come in and have themost edits, more so than any of
your, like best paying clients,or sometimes worse paying
(05:36):
clients, these people are goingto far exceed those. So a way to
combat this is do require 100%,creative freedom, even create
something for them, give it tothem, they like it high five, if
not, they can go pay someoneelse to do it, which I think is
an interesting and interestingidea. I also want to say that if
you are but if you are wantingto do projects like this, it's
(06:01):
very important not to hurt yourbusiness in the process, which
can be a very easy thing to do.
So it's very smart to createsome boundaries around you
offering discounts, ordiscounted services or products
to friends and family. So guesswhat, you have that set
(06:23):
discount, that's a nice littleboundary. And people can use
that as they wish. We've donethis. I've done this with
product things before for sure.
You can also do this withservices. But especially with
services, think about how it isthat you can put some boundaries
on that. So that let's sayyou're only doing one discounted
project per quarter, or port permonth, or whatever it may be so
(06:45):
that you are not sort of workingat a discount always. So if
let's say your mom comes, she'slike, Hey, can you also make me
a website, but like, sorry, mom,or maybe this should actually
let's say you're doing one foryour mom, let's actually not
make mom a part of this at all,at all. Let's see, friend number
one comes around and they'relike, I need a website, you
decide to do it for a discountfor number two comes around, and
(07:07):
they're like, I need one to alsoa discount. Instead of doing
both of those at the same time,push the second friend off to
the next quarter. That way,you're not really taking a huge
hit across your entire businessby doing too many discounted
projects.
Corey Winter (07:24):
For your friends.
My mom comes along I'm notsaying oh my mom.
Emily Thompson (07:28):
I know. I know.
That's why I took mom out ofthis a whole different set of
rules apply to mom, for sure,for sure. And then I also want
to say that if you have if youare struggling with people
coming to you asking fordiscounts, you can say no. You
can say no to any friend, youcan say no to any family member,
you could probably even say noto your mom.
Corey Winter (07:52):
Okay, so quick follow up, man, how do you say
no to your friends withouthurting their feelings?
Emily Thompson (07:59):
You have no control over their feelings?
Number one, that's a veryimportant thing to understand.
You could say yes or no. Andtheir feelings are on them.
100%. I love and this is what Iactually learned from Kathleen,
I love replying with I justdon't have the bandwidth right
now. Or I don't have room for itin my schedule, or whatever it
(08:20):
may be so that you are not it'snot that you're making a
decision is that your businessor your current project load, or
whatever it is, is actuallymaking this decision for you. I
mean, that's probably one of theeasiest tactics. You can also go
further like if it's if you aresaying no, because you don't
think you're the right fit. Tellthem that be like, you know, I
(08:42):
know that I design websites, butI actually have no idea how to
use this platform that you'rewanting to use, or I have no
experience working with yourkinds of businesses, or whatever
it may be, you can actually givethem a good reason why it is
that you're saying no. So Ithink those two things are my
biggest tips. You can also justlike know as also a full
sentence. And then theirfeelings are on them. You can
(09:08):
then buy them a cocktail.
Corey Winter (09:10):
Or you can even once they do go and find someone
else to do the thing for them,you could support it once it's
live,
Emily Thompson (09:18):
for sure. And I mean, that's the thing to feel
free to recommend them tosomeone else, whatever it may
be. Regardless, this can be asticky situation, but doesn't
have to be and I think the keyhere is to be proactive. I think
about any sort of boundaries ordiscounts you can go ahead and a
lot to these things prior tothis. Consider other things in
(09:40):
your life that you would takeinstead of money, whether that
be eggs or art, whatever it maybe, because I think there's some
interesting opportunities thereas well.
Corey Winter (09:53):
Have questions I'm looking for answers. Join bosses
from around the world in thepain boss community and be a
part of an ongoing Congress.
about cultivating a bossmindset, creating healthy
boundaries, some real life,business tactics and more, learn
more and join us at being bossclub slash community.
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