In the rush to get an account, I recall offering my first customers a discount if they ordered gift baskets from me during our meeting.
Most of the time the strategy worked, but you can guess what happened after that. Yep, those same customers expected discounts every time they called to place additional orders.
When I didn’t provide the requested discounts, those customers neither called again nor did they order when I sent literature to them by mail.
There are also customers who say they won’t order without some type of concession. One person called me and demanded that her chocolate, cashews, popcorn, tea, and coffee gift basket cost $30.
I declined the order. I can’t imagine where she went to get such a basket for that low price.
When customers ask you for discounts on their gift baskets, what’s your response?
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{ 3 comments… read them below or add one }
My response to people who want extremely low-priced baskets is to buy from the companies where they are able to get these deals.
A hotel once wanted me to create honeymoon-themed basket for newlyweds who booked the honeymoon suite. They wanted to pay $25 and planned to buy about 3 each month. The lady who had been providing these baskets with chocolate, snacks, and more had gone out of business. Surprise!Surprise!
To create the look and contents they wanted would have resulted in me running a charity, not a business.
I declined their order, and they convinced one of their employees to create them added on to her other duties. She was duped. Now they didn’t have to pay any labor, just provide the contents and container.
Hi Flora,
What you share is a great lesson for new and aspiring gift basket designers.
Discounts and low prices just to get orders aren’t the way to build a profitable business.
In addition, the dissatisfaction from such practices quickly sours you and, like the woman who was making the honeymoon baskets, puts you out of business.
I’m so glad you commented on this subject.
In the long run it is not worth it. If you create a high value there is no need for discounts.