by Sandy Weber on Jun 10, 2008 at 12:57:34 am
Hello all you smart business people out there!
I was wondering, in giving a discount, is there any advantage to keeping my full rate and discounting the hours rather than discounting the rate?
I have a client who has introduced me to others who have also become clients, and he continues to do so every once in a while. I want to give him a discount (as a thank you for all the business), but I don't know if I should just discount my rate for him or shave off hours at my full rate. This would be an ongoing situation with this client (at least though this year).
Re: Discounts by Zane Barker on Jun 10, 2008 at 7:02:48 am
I am a fan of showing the correct number of hours on the invoice that way the client does not get the wrong idea of how long it really takes to do things.
I recommend listing the full hours on one line of the invoice and adding a second line sowing the number of hours discounted or not billed for, and then the third line giving the total bill hours and total bill.
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Re: Discounts by Steve Wargo on Jun 10, 2008 at 7:13:28 am
With new clients, if you want to give them a break, give them "free" time, never a rate reduction.
As stated by the other poster, write it out at full price, then, knock off the discount by listing a reduction of hours. If you give them a discount on the hourly rate, that is the rate they'll expect in the future.
This is the most fair way to give them a reduced price.
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What I've done in the past is invoice them for the full amount of hours, dubs, whatever, at the full price, then in another line on the invoice, give a discount, with the reason. That lists your full price, with the full amount of work done, and the actual discount with the specific reason.
I'm with Arnie...I put all the hours at our current rate. The last line is the discount and why we are giving the discount. It is quantity 1 and is just a total amount, depending on what we agreed upon.