I have a small company that runs vocational guidance workshops. I'm 31 years old and some friends and friends of friends and family often show interest in participating. I do not charge close friends and family besides the expenditures coverage but I'm really considering what charging policy I should have with people like this girl who's been dating my semi-close friend for 2 months, and my sister's best friend brother etc. Could you offer some advice for both how much and how to present it? thanks!
2007-04-11 03:52:02 · 5 answers · asked by Anonymous in Business & Finance ➔ Small Business
If a relative is sitting in on a seminar you're running anyway for paying customers, then maybe a charge just to cover expenses is reasonable, but otherwise while you might give friends and family a substantial discount, it's not reasonable for them to expect your services for free or for very little, especially since it sounds like you're getting into "friends of friends". For them, a 10% or 15% discount would be generous. If it's an immediate family member, or a very close friend of yours, helping them out and only covering your own costs might be reasonable, as long as it's not taking too much of your time.
You can just tell new people who ask for help that you'd be happy to extend a nn% discount to them on the cost of your services. If they get mad about it, it's their problem, not yours.
For someone dating a not terribly close friend, and for your sister's best friend's brother, frankly it's not reasonable for them to expect any discount. If you choose to give them a small discount, you're really being nice to them. If they expect more, they're trying to take advantage of you.
2007-04-11 04:15:29 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
I'm an IT/Computer (expert?) you might say and basically when I do work for friends (outside of my regular job) I charge them roughly 50 - 60% of the going rate. The Geek Squad charges about $59.xx, so I charge $30.00. I really don't know your business or what the margin is like, but for me it's 90% labor, so it's a fair deal for me. Also consider how much effort it takes you to provide them service - I won't rape someone (pardon the phrase) for something that's really easy.
-J
(Also don't forget, if you give something away for free you are de-valuing it. If you charge, even your friends, you are showing confidence in your product and service - which is 'positive energy'.)
2007-04-11 10:59:45 · answer #2 · answered by Anonymous · 1⤊ 0⤋
To keep your business professional and make profits, you should charge all people the same and keep the same guidelines for all. What you offer is a service and there is something called "perceived value". If someone does not pay for a service then the service may be considered not as good as some they have to pay for. Don't cut yourself short if you want your business to suceed.
2007-04-11 10:58:05 · answer #3 · answered by rusty_fannascar 1 · 1⤊ 0⤋
You sound like a rank amateur to tell you the truth. You charge them the same amount or perhaps do a 20% discount under certain circumstances. No one will value your workshops/product if you don't value them yourself.
2007-04-11 10:57:16 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Tell them that you would love to help them out but you also have to earn a living and charge them 50 percent.
2007-04-11 10:56:29 · answer #5 · answered by Mandi K 1 · 0⤊ 1⤋