Mates’ rates.
Ever heard of mates’ rates?
You often encounter people asking for them when you just started a business, or even better, once your business is starting to take off.
“Aw, hey man, could you maybe give me a discount on your stuff?”
“Eh, sis, we’ve been friends for so long, give me a good price on your services?”
“Hey cuz from my distant step-aunty’s brother’s son-in-law, can you give me a family discount?”
Yeah.
Screw that.
You see, I hate mates’ rates.
When a business owner prices their products and services, a lot of thought has gone into the costs involved, the profit margins required and the price of the business owner’s time in creating the product or service. So when some ‘friend’ comes around asking for a ‘friendly discount’ my general response is:
“Sorry mate, but these are my rates,”
Don’t get me wrong, I’m not opposed to offering discounted services for charities or people really hard down on their luck. But what I am opposed to is individuals taking advantage of personal connections to haggle a discount with me. Either respect my prices, or find someone else.
I am however, open to exchanging products and services (of close or similar value) with other businesses – that’s always a great way to generate goodwill and is a win-win situation. But mates rates only result in the seller losing out to retain what may be a tenuous friendship at best.
And please, don’t get me started on ‘friends’ saying if they give you a good price, they’ll pay you back in exposure.
Exposure doesn’t keep the lights on, put food on the table or keep my business running mate.
If you have a friend in business, please respect their prices. Don’t hassle, annoy or guilt them into reducing their prices for you – it’s not cool. If you are a business owner and you get approached by a friend asking for a discount – stand your ground, be respectful and don’t budge on your position. If they stop being your friend because of it, they weren’t a friend worth keeping anyway.
Stay away from mates’ rates!
But definitely Stay Positive!