17th February 2020
17th February 2020
When was the last time you asked for a discount?
There's an old adage: 'don't ask, don't get...' and I never really paid it much attention (probably because my parents said it and ... what would they know!)
Then one day, one of our businesses was really struggling. I mean going broke struggling. And as part of a last ditch effort to keep it afloat one of the things we decided to do was go to all our suppliers and ask for a discount.
I was as shocked as anybody when most of them offered an average of 10 to 15% off the price we were currently paying!
One of them even cut his rate by 50%.... can you believe that! 50%!
That experience taught me a few important lessons:
1. Some businesses are working with better margins than others and can afford to give a bit of a discount off their rate.
2. They are NEVER going to tell you that, or offer the discount for no reason.
3. If you ask for a better rate, you can often get it.
4. Most people just never ask.
Now - I always ask!
If you'd like to give it a try, here's the approach I like to take:
"Hey Bill/Tim/Sharon, we've been buying off you for a while now and we love your product. We really want to keep doing business with you but things are just a bit tough at the moment because of (insert feasible reason). Is there any way we could get a bit better rate on (insert product)? I really want to keep selling (insert product) because our customers love it and I love it too, it's just that things are tight and we could really use a bit of a break. What's the best rate you think you can do?"
Don't feel guilty about this. The fact is, things are tough right now for most businesses and if they aren't for you, they could get that way any time without warning.
If your supplier can afford to give you a discount, they will. If they can't afford it, they won't. But you will know either way.
I've had several clients save literally thousands of dollars a month by just asking a few of their major suppliers for a better rate.
It could be the easiest money you ever earn.
Give it a try and let me know how you go :-)