Tonight we are delving into “Why we should not discount our pricing when asked by a prospective client.” Aside from the fact that it’s irritating – like when you’re in Outback Steakhouse and you offer them $15 for their $23 Ribeye. Huh? My mortgage holder, tax collector and insurance men would laugh in my face if I suggested 15% off. When you agree to give a client a discount, you are undermining your business, value and reputation. You are now open to negotiating everything, including the value you place on your time and efforts. Once you know, really know your costs and value, then you set your pricing to where it needs to be at and that’s that.
Entrepreneur Social Club (ESC) gathers here in beautiful downtown St. Petersburg, Florida, aka DTSP, once again, tonight June 9, 2016. Like we do every Thursday night, most always at historic venue NOVA 535. Next week are are offsite, so always take a peek at our ESC EVENTS page for our exact location.
Below is Arthur, Dan Novella, Sara MacQueen of Big Fish Mobile Apps Development, Big Nick Mazeika, Business Consulting for historic venue NOVA 535 (looking for a 5 Star Wedding or Corporate Party?) and the always fabulous Gina Tracy of Imagine Root (designs).
Wants and Needs: Check our Member’s Profile for contact info.
Chris Jenkins: JR Developer, Digital Designer, Digital Content Manager
Bruce Burke: Meeting Space
Gina Tracy: Garage for quite local artist 600 sq ft 3/4 bath $450 47 ave north and MLK
Ricardo Duval: Clients who want a video for an introductory rate with his Red Polar Studios. Rick is offering an incentive. This is a marketing expense and is fine if HE is offering.
Dr. Beau Smith: Giving free massages at their business
Kym Jenkins: Box Printing, Cypress Folding Cartons.
Why we should not offer a discount: (from a customer initiated discount)
- As soon as you’ve given a discount you will be negotiating, sometimes every little thing. Draining and time consuming to say the least.
- You’re devaluing your experience and expertise.
- Now everything is a negotiation vs. an established pricing menu.
- Are your prices published or hidden? At NOVA 535 our pricing menu is for the whole world to see and review. Just like at a restaurant, you don’t negotiate on the salad and dessert prices, do you?
- Why are you discounting? You’re only hurting yourself. You (should) know exactly what your costs of doing business are plus your profit so you can expand and grow. This isn’t a hobby, it’s a business. Treat it as such.
- Is it up to standard or down to price? Do you want the 5 Star Business or the level of business you’d get for your discounted price?
- Volume pricing is different than negotiating.
- If you’ve discount your pricing then that discounted client is not at the top of your “to do” list. Plus discounted clients are most likely your most difficult clients.
- QUICK ESC POLL:
- Is your pricing transparent? 8/33 have prices online, of them 19/33 are a service company.
- Always be ready to walk away from the (low rate) deals.
- When you do give a discount, where is that loss coming from? Not your insurance nor tax man, not your electric, cable nor other utilities, not on your mortgage, etc? So it comes out of the quality, the materials, the service or the owner’s pocket. So you tell me where do you want to cut from? My fee? Do you work for less at YOUR job? Will you take $10/hour less if I ask?
- It’s fine for you the business owner to offer a discount, but always say no to a client trying to bully you into lowering your price. When people don’t want to pay we say FUPM. Just ask Chris Jenkins what FUPM means. Fuck You. Pay Me!
Above we have Kyle Labit, newcomer (welcome!!) Dr. Beau Smith of Hood Chiropractic, Arthur Gueli of Legal Information Solutions, aka Injury Claim Coach, and finally our returning champion CPA Dan Novello.
Below is Bruce Burke, welcome back it’s been way too long Bruce, newcomer Carl Lawson, Jr. of Curious Compasses and another ESC member who’s been away WAY too long, Brandon L Kolb, Esq., along with his friend, realtor and newcomer Kimmi Hunt. Welcome!! (back) everyone!!
(So I asked the group) What’s next after Success? AKA If money was no longer an issue, what’d you be doing with your life?
JULIA – Inspirational Speaking.
CHRIS JENKINS – Doing the next stage after having his company acquired. Want to ultimately mentor and show kids entrepreneurial opportunities.
ESC GROUP ANSWERS: What we’d be doing post success / money is no object: helping kids, consumer advocacy, own strip clubs, traveling, fishing, mentoring at risk youth, writing, eedge manufacturing, eco-lodge for adult volunteer vacation, creating opportunity for your people regarding healthy food, help refugee women make their own feminine hygiene products, clean water is critical, junior achievement, financial literacy.
Tony Michaelides – started selling records out of the back of a van, then to working with U2, David Bowie, until he met a guy, a Bowie fan, who has hired Tony to be the chief evangelist of Magic Leap. All now towards creating a legacy for people via 3 Moments that Rock. What are the 3 pivotal moments in your life? All these things involve storytelling.
Above is Red Polar Studios owner Ricardo Duval, newcomer Justin Bushko of Concise Engineering, and our always fav and hilarious Julia Haddad of Fruityz Organics, Miss $5 Facials herself. Check her out in our suprise ending tonight.
Above is our tech guru Chris Jenkins CIO of Symphoni Media and lovely wife Kym Jenkins, tonight showcasing here new venture Flavor Crate, check it out at TheFlavouCrate.com, Jeff Sassano of Anytime Concierge, and newcomer (welcome!!) Suzanne Siegel of Distinctivegrafix.Com.
Below Mr GateauOChocolate (oh my goodness are his cakes so delicious, all natural and excellent for gifts!) Emmanuel Roux, fashion designers Ann Marie Kriso, d’ Arcy Mueller of Acorn Interactive and finally our legendary rock-n-rolla storyteller Mr. Tony Michaelides.
We always share and most often review business cards, tonight was a full house. The quick on cards: Make sure that they are professionally designed (hire a pro), it’s clear as to exactly what you do (clear and concise pitch) make it easy for me to get into contact with you (phone, email and website – occasionally you might not have a phone number, like for our web only business DowntownStPete.com, but ALWAYS email and website.) Plus you want to use the same business name for your business name, email and website. Name = NOVA 535 Emial = Info(at)NOVA535.com website = nova535.com. You can use Gmail to mask your email, just ask one of our tech specialists in the group.
After the meeting and before dinner Kym, Gina and I were goofing around with some selfies, they kept moving out of frame…was hilarious. Since I’m shooting all the photos on my NOTE 5 Samsung, I try to get myself in at least one shot, for the record books and all.
Dinner was once again held at Brick and Mortar Kitchen, located at 539 Central Ave, St. Petersburg, FL 33701. Call (727) 822-6540 for more info, they don’t take reservations at this time but there is a wait list. Owners Hope and Chef Jason are spectacular people, business savvy and full of great energy. We brought a large dinner group tonight, and after our Tetris like rearranging of the tables, we got settled and continued our expanding conversations and laughter carried over from tonight’s meeting at my event venue NOVA 535. Of course the red wine was flowing, tonight enjoying for the first time a few bottles of Mano a Mano, a delicious Tempranillo. Bottle right is Community Cafe owner Mandy Keys joining us for a nibble and a splash! Love a Mandy, go check out her lovely Cafe at 2444 Central Avenue.
Tonight the special at Brick and Mortar Kitchen from Chef Jason was the tempura softshell crab and squid ink pasta, coddle egg, shaved bottarga roe, and wow it was divine!!
Below their amazing farmhouse salad (about 2/3 eaten by the time I remembered to snap a photo) SO DELICIOUS AND HEALTHY!! Thanks to owner Hope Montgomery for allowing us to hang late and pepper her with our ESC improvements, we just cannot help it. Brick and Mortar is 5 STAR EXCELLENT, and there is very little to improve upon. We suggested that her menus are 2 sided, food/drinks vs 2 separate. Also some auto phone answering (during their 7pm to 1pm rush) and/or an automated table / que system. Whatever they do, we’ll be back REAL SOON for more of their deliciousness! If you haven’t tried Brick and Mortar Kitchen in downtown St. Pete, do it! Tell them Michael of DowntownStPete.com sent you! And please don’t ask them to discount anything. Ha!
After dinner a few of us sauntered down to the east end of Janus Landing, opposite end of our normal venture into Ruby’s Elixir for great live jazz. Tonight there was a band that I saw (or thought I saw) advertised as covering Steely Dan, so I wanted to check them out for sure. Playing was Flat Land Band, out of Gainesville, they were excellent. Playing what they describe as “Ethereal Funk Fusion”, BRAVO! Here’s their website http://www.flatlandsound.com. We enjoyed the music venue, previously nightclubs, restaurants and so many memories, this building now houses the venerable Ringside Cafe. And tonight’s biggest surprise was when Julia covered our final round of drinks! Bravo to all of those $5 Facials!
Join us every Thursday Night, 6 pm to 8:30 pm, most alawys at downtown St. Pete, Florda venue NOVA 535 ** June 16 and June 30 we are OFFSITE **, check http://entrepreneursocialclub.com/events for our exact weekly meeting location. The ESC is always a fun, productive night with like-minded business owners, Entrepreneurs, startups, mentors students – just leave your religion and politics and discount at home. See you Thursday!