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How Should Craftspeople Deal with Friends or Relatives who Want Large Discounts
or Free Merchandise?
What’s your opinion?
Each month, The Crafts Report invites readers to respond to the Public Opinion question. Responses are published in the magazine.
This month’s question is: How do you use a camera in your business, and what type of camera is it?
Please respond by April. 8. Responses to this question will appear in the June 2003 issue.
E-mail: publicopinion@craftsreport.com; or answer online here.
Send responses to: “Public Opinion,” The Crafts Report, Box 1992, Wilmington, DE 19899; fax: (302) 656-4894.
Anonymous responses will not be published.
Friends and relatives should not expect a discount. If they ask for it, they should politely be told you can’t because this is how you make money to live.
Marla Elsner
The Clay Factory
Liberty, Mo.
It depends how close the crafter is to the friend or relative and whether the friend/relative is abusing the relationship (buying a lot and expecting below cost prices). I often want to charge less than my friends are actually wishing to give me. I don’t like to make a profit at the expense of someone very close to me. On the other hand, if they are thinking of using me as their “supplier,” a less endearing arrangement should be made.
Patricia C. Vener
Silver Dragon Creations
Randallstown, Md.
I definitely give discounts and free merchandise to relatives and friends. They are my best customers at times! They wear my products constantly and are a great source of word-of-mouth advertising. I also live by the premise that what you give out comes back to you so I feel it’s a good thing to engage in this type of activity.
Diane M. Zielinski
Custom Jewelry By Diane
Richlandtown, Pa.
That someone would actually have the audacity to EXPECT a “large” discount or freebie for a handcrafted item is beyond me. But I know they are out there and in number.
If the person were able to direct an adequate number of serious buyers to you, then a sizeable discount may be in order, based on sales generated by their lead.
Otherwise, politely, yet firmly quote your customary discount (considered in advance), stating that you are a businessperson and that this is your livelihood. Materials, time and talent are a commodity and you must get a fair return on your investment.
An interesting idea may be to barter ... especially if you can get them to barter their time as an assistant to you. Maybe when they see how much goes into a one-of-a-kind creation, they’ll be far less likely to be so forward.
Judi De Souter
New York, N.Y.
Quote them a higher price so when you do give them a deal you’re still making your money. When making crafts, I will not sell cheaper to friends and relatives … I do not want to be known for that. So even if I keep the merchandise and put it away, I will say I no longer have it. I would rather them think I could sell it for a good price than to give the merchandise away.
Patty Jacobs
Primitive Patches
Snohomish, Wash.
Keep handy a chart that shows the following information for various merchandise you carry: Cost of supplies, labor hours (with $ value), and possibly a certain built-in percentage, which you consider miscellaneous overhead costs per unit.
If you would really like to give certain friends and family members discounts, give the merchandise to them for the price on your Cost of Production list — without the mark-up for profit (although you may want to build a 10 percent hidden inflation/profit amount on these chart prices, probably in the miscellaneous overhead costs section).
If you really feel strongly that you would like to give someone something for free, let them know that you will put it in a closet with their name and birthday on it, and they can count on that as your gift to them when the special day arrives!
Tonya Clifford
Gigia’s Pot Shop
Little Rock, Ark.
We keep it simple and take one of two routes. Friends/relatives tend to be frequent or repeat buyers so, we charge them our regular wholesale rates. If the budget won’t allow for that, we redirect their attention to items that are smaller and less expensive or even liquidation items such as seasonal stock, or dinged and nicked items that are all still perfectly functional.
Georgia
Rainbow Candleworks
Portland, Ore.
-Compiled by associate editor Heather Skelly.