Give a discount AFTER having a signed contract? Would you?

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Papa Deuce

DJ Extraordinaire
Aug 8, 2006
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Valley Forge Area
This is a Bubble Party issue, but you can see how this might apply across the board.

I have a contract with a daycare chain for 11 parties in 2009. I have already given them a 10% discount included in the contract price - for booking multiple events. Today, the lady I signed teh contract with called me and asked me if I could lower my price another $20 per party.

She told me that her chain is struggling financially, and that they would really appreciate if I could do this for them.

I admit that I am torn.... but I probably will give in.

Honestly, at the price she would now have, I won't really feel like I was paid what the job is really worth ( GWYW? :sqerr::sqwink: ), but I will still make a reasonable amount. I just won't have that happy feeling when I get paid.

She has indicated that she will live up to the contract if I make her....

WWYD.
 
MBM said:
Would it happen to be the daycare you use? If so work a deal.
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I don't use a daycare... my kids are in 2nd grade.
 
That is tough. I do a lot of work for churches and I know what I have to make per gig to turn a profit. So, for example if I was doing a church gig and they asked me to take $250 off and I could still make a profit, I would probably do it. On the other hand if I am doing a corporate gig and they signed a contract then I am more likely to make them stick to it.

Mike
 
A couple of things stand out for me...
Papa Deuce said:
I have a contract with a daycare chain for 11 parties in 2009. I have already given them a 10% discount included in the contract price - for booking multiple events.
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OK, that's more than fair for multiple bookings... After all, you are recognizing that this is a special client by offering the discount...

Today, the lady I signed teh contract with called me and asked me if I could lower my price another $20 per party.

She told me that her chain is struggling financially, and that they would really appreciate if I could do this for them.
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I'll assume that the client is aware that she is already getting a discount for the multiple bookings. I'll also assume that as a business-person that she should also understand that you are probably ALSO struggling financially (given the economy).

I admit that I am torn
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.... but I probably will give in.
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A question: is there anyone else in your area offering the service you provide with your bubble parties? Unlike DJs (who we all know are a dime-a-dozen) I will further assume that you offer a unique service...

She has indicated that she will live up to the contract if I make her....

WWYD.
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Personally, I would talk to her and explain that in order to provide the level and type of service that caused her to book ELEVEN parties, you need to charge a minimal amount per party. She obviously recognizes the value of the service you provide.

Chuck - I would hold the line, and by way of an olive-branch, offer to hold THIS YEAR'S discounted price into next year, should she be inclined to continue using you...
 
If you are going to give in, perhaps split the difference?
It's tough because with that additional discount you are essentially doing one and a half shows for free.
 
WaydeWest said:
If you are going to give in, perhaps split the difference?
It's tough because with that additional discount you are essentially doing one and a half shows for free.
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Too true!

The original discount alone means that one event is already being done for free... Sometimes there is only so far that you can bend...
 
Zac, someone had a flier up in the grocery store saying they did them, but I have no confirmation that they have actually performed any..... funny enough - :sqmad: - the flier first appeared last year, just 3 months after I started doing my bubble parties....
 
Split the difference would be a good idea.
 
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Disclaimer: This post in no way either purposely or unintentionally is made to represent any organization in existence today. Well maybe PETA, but that's it.
 
Papa,

Follows is my personal opinion only. Some of the folks may disagree with what I'm about to say... but it comes from the heart.

It's not like this is a wedding or other one-shot show. This is a repeat client with 11 shows on your calendar. These are bread and butter engagements.

Your client isn't blowing smoke. People who are laid off don't take their pups to day care. The entire industry is hurting and we haven't seen the last of it. Neither has your client.

A friend in need is a friend indeed. And a client who books several shows at one sitting is a client you want to take good care of.

Bubble Parties are for the little ones. They're not for us older folks. Little children don't have much they can truly call their own anymore. Bending a little today may well mean that the pups can have other activities as well.

In time to come, the economy will pick up and your client will remember how you showed compassion during the lean times. She'll be more receptive to price hikes. She'll book you every year and tell everyone she knows what a great DJ you are.

People in the daycare biz have a lot of professional, upscale contacts. I used to do a Christmas party for a daycare owner every year. They've got the kind of inside contacts you want. They're friends with people in high places.

Here's my reasoning: Plant a seed today, reap the harvest later. :)
 
If you must give in, ask her to meet you in the middle at $10 off. 11 gigs is a lot of work but it is a big seed to plant. The rewards may be great.Also, If you are not already bringing your 2nd grader, ask that as a trade off. Being able to bring your little one with you to a gig that can be enjoyed by both of you... priceless.
 
Fred Stewart said:
Papa,

Follows is my personal opinion only. Some of the folks may disagree with what I'm about to say... but it comes from the heart.

It's not like this is a wedding or other one-shot show. This is a repeat client with 11 shows on your calendar. These are bread and butter engagements.

Your client isn't blowing smoke. People who are laid off don't take their pups to day care. The entire industry is hurting and we haven't seen the last of it. Neither has your client.

A friend in need is a friend indeed. And a client who books several shows at one sitting is a client you want to take good care of.

Bubble Parties are for the little ones. They're not for us older folks. Little children don't have much they can truly call their own anymore. Bending a little today may well mean that the pups can have other activities as well.

In time to come, the economy will pick up and your client will remember how you showed compassion during the lean times. She'll be more receptive to price hikes. She'll book you every year and tell everyone she knows what a great DJ you are.

People in the daycare biz have a lot of professional, upscale contacts. I used to do a Christmas party for a daycare owner every year. They've got the kind of inside contacts you want. They're friends with people in high places.

Here's my reasoning: Plant a seed today, reap the harvest later. :)
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I completely have to agree with Fred on this one. She obviously took a big step in committing to your services for that many events, which was a real nice gesture. I would return the favor and knock of the lousy $20 per gig. It's only $220, and this is nothing. Imagine how much she would brag you up on you helping her out! Just tell her, she is lucky enough to receive the discount, and if anyone else asks...she needs to tell everyone she is paying the original price.

Please here me out on this.....

I had a call from a client, and their concern was my price...$100 more than her other DJ choice..I held firm on my price, telling her what value she was getting. Me and my employees held a meeting, and this very topic got brought up. We all agreed lowering the price is out of line, since we offer more services than the other DJ in check. We all came to the conclusion that if someone is financially having trouble, and they indicate price as a factor, we will now tell them that we are not going to lose a gig for $100. But we said, we will make a judgement depending on the situation and the client...anyways....

This couple calls back and says, the other DJ just doesnt call them back, so she wants to book us. I said you know I said $600, and she was like, yea...I then said..I tell you what, we had a meeting and we talked about this situation, and we decided that if someone is in the position of being financially strapped, we will knock off $100. She was like, you would do that! I was like yea we will. She was so happy, literally crying on the phone, thankful for the kind gesture!

I honestly think we made the right move! I also mentioned, if anyone asks, you are paying $600. And she was completely ok with that. I said $600 is our rock bottom price, and we don't want a bunch of people taking advantage of that deal. She was very understanding. So I really think this will benefit our business, and I think no matter what happens that night, the couple is going to be so thankful for our services!

But anyways...Fred is completely right..knock off them prices, and reap the benefits later! I know money is money, but if you need to worry about $220 you are in the wrong business! If ya catch my drift! Either way, best of luck!
 
Papa,
Are you the only vendor being asked to give an additional discount on services or is this something that the daycare management is doing across the board with their vendors? You seem to want to help these folks out so I think that is a reasonable question to ask before you make the final decision.

Additionally you mentioned that a further discount won't leave you with a happy feeling. For me this would be a big factor in my discount decision. You've got 11 of these shows to do. If you're going to be unhappy after every one of them, that's a lot of unhappiness for a gig that you once thought was fun.
 
lol i would say sorry we are struggling as well - less are getting married

or book me for another 2x years and a certain amout of shows and i'll do a deal...
 
My first choice would be not to budge on the already discounted fee, but offer to let her out of the contract.

You could renegotiate and contract the jobs individually month to month, but that would be silly. What are we all supposed to do? Are we to look into everyone's bank accounts to see what they can afford?

If a job I contract 6 months from now ends up costing me more than it would to do it today, would I be in line to ask for MORE money? No, and that's basically what she's doing in reverse to you.

If you were gouging her like the big egos out there, I would side with her. However, I have to believe that you're being very fair to her.
 
Papa,

Nothing from nothing leaves......nothing.

If they go out of business, you get nothing. If you don't discount, you may get something, but not all. If you discount, you are guaranteed to get ALL OF IT.

I would. However, if it were a bar or hotel, I'd say NO.

Best,

Dave
 
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