Over the years, I’ve given friends discounts on services I charge major corporations full price for. Why? Because they were friends—or so I thought. The older you get, the more cautious you become about who you call a friend. In hindsight, this generosity never worked out in my favor; it mostly benefited them. Now, I respect my friends and business associates enough to keep friendships separate from business. I rarely ask for favors, and never for free. Mixing business with friendship is a recipe for trouble, and you shouldn’t do it either.
Respect your business and your clients at all times. Discounts are fine, but be honest and fair about them. Giving a discount is like telling a lie unless it’s fair to everyone involved. If you offer a discount to a client with a smaller budget, make sure your biggest clients still get their value. Those who pay less should receive less, and those who pay more should get more—but never give anything away for free. Here’s why you need to say NO to discounts, especially to friends and associates.
Friends Will Immediately Take Advantage of Your Relationship
Friends see your generosity as an opportunity, not a favor. They don’t consider how it affects you or your business. You should. When you extend discounts or favors, they’re effectively stealing money from your pocket. It’s not personal; it’s business. Protect your bottom line.
It’s Rarely a Win/Win Situation
Most of the time, your friend benefits the most—especially when you give your services for free. I recently had an associate ask for a free favor that I knew he would get paid for. By doing the favor, I was subsidizing his income. Philanthropy is one thing; running a welfare agency for friends is another. If your friends or associates aren’t willing to pay at least half your usual rate, you’re being taken advantage of. Walk away.
Free or Nearly Free Kills Perceived Value
If friends know they can get your services for free or at a steep discount, why would they ever pay full price? “I’m broke” becomes the go-to excuse, and you can’t compete with free. This erodes your brand’s value and sets a dangerous precedent.
Discounts Spread Like Wildfire
Word gets around. Other clients will hear about your discounts and demand the same. I’ve had clients call me asking for lower prices because they heard I gave a deal to someone else. The friend who got the discount often tells others to keep quiet so they can keep their deal, but this hurts your future business and reputation.
They’ll Come Back for More
People learn how to treat you. Once you give a discount or favor, they expect it again and again. You can ask for money later, but once you give something for free, it’s hard to take it back.
How Does the Favor Serve Your Business?
Remember, time is money. If a favor isn’t paying you or at least covering your costs, it’s costing you. You have bills, employees, and growth goals. Don’t sacrifice those for favors that don’t add value.
Beware of “Carrot-Dangling” Promises
Friends or associates might say, “I’m working on getting you paid accounts,” but meanwhile, they spend money with your competitors and come to you for free. They know what they’re doing. How would your landlord or mortgage company feel about that excuse?
Discounts Can Damage Your Brand
Does the favor fit your brand’s mission and image? If it feels out of place, you’ll pay a higher price than just the money lost. Customers notice when your business behaves inconsistently. Don’t cheapen your brand by doing favors that don’t align with your values.
When You Object, You Become the “Bad Guy”
Once you start giving favors, you’re obligated to keep doing so. If you push back later, you’re the villain. They’ll say, “I’m trying to get you paid business, why complain?” But you can’t blame them for taking advantage—you have to set boundaries.
Learn to Say NO
If a request doesn’t feel right, trust your gut and say NO—plain and simple. No explanations needed. If they push, say NO again. Saying NO feels better than saying YES when you want to say no. If they cut you off because of it, you’re probably better off. How often do those “friends” really check in anyway?
Be Reasonable with Discounts
Respect your business. Offer no more than a 10-20% discount. I once paid my mother full price for a sketch she did for me. If I couldn’t afford it, I wouldn’t have asked. Respect others’ businesses as you want yours respected.
Practice What You Preach
I know a guy who gave a friend full price and was insulted for it. Then, when he needed a favor, he offered an insulting discount and was refused. He called the friend cheap but then complained about paying full price himself. When it comes to favors, don’t expect more than you’re willing to give.
BONUS: Who Are You Keeping Company With?
If you’re constantly dealing with these discount dramas, you’re surrounded by the wrong people. Your business needs
Kevin "KevRoss" Ross is a music and radio industry expert. He is a 20 -plus year entrepreneur with the leading most successful industry trade publication and site Radio Facts (www.radiofacts.com). He has also published various books, magazines, performed marketing and promotions for major corporations and recording artists and he is on the advisory board of several industry organizations. This year Ross introduced his non profit organization LOMARI (Leaders of the Music and Recording Industry) to help teach young minority students how to market and manage their music and products.
