[bps092]

Well, ive been thinking about this for as long as I can remember and I thought I would finally make a discussion out of it. It would seem obvious that if you are in any business that provides products or services to the general public, your friends and family are bound to ask for what you provide at one point or another. With me, I co-own a webhosting company and it's always on monthly or annual payments, not products individually. One big thing I have found is it's very hard to judge how much you are supposed to charge friends or people you know well because you know, I've got bills to pay but I want to retain the self respecting image I have with my "peoples." Imediate family of course I will give them everything for free because its the right thing to do.

I suppose this is probably one of the toughest challenges I have had to (yet) overcome. Charging people you grew up with or know fairly well. It just doesn't seem right, but its business. With some people I know, they are hosted by us but they pay me cash since they are local and I setup their account pretty casually (not so macho business man on the phone.) But when it comes time for payment sometimes I have had to put down the foot on people because I think I let my friends or people I know walk all over me and took advantage of my kinder side. I suppose my real topic question is if any one else has encountered problems like this? Dealing with people you know?

For a last note, I suppose the most important thing that business has taught me is not how to sell someone, but how to understand who even your best friends are, and that things aren't always as they seem; meaning that even your best friends may have a shady side that a business transaction will bring out.

Random thoughts, anyone have similar experiences? Thanks.

[mediad]

In the company I currently work for (it's a small Audio-Visual company), I typically give close friends and relatives cost + 10% to cover the cost of actually making the sale. (taxes, etc) For casual friends or people that I know that want a "hook up" I gently explain that we charge what we do because thats what it takes to stay in business, if they wish to support our business that is their choice. Probably our biggest source of begging comes from non-profits, they want everything for free. For those people, I tell them we have to charge the rates we do to stay in business and provide the services they are asking us to provide. Most people understand and the ones that don't, well, we are better off not having them call again to beg.

[mpnetwork]

I dont offer a specific rate, sometimes I'll knock $100 or so off the price.

I also reward everyone, even family, for referrals. Usually $100+, it is an easy way to encourage referrals and grow my business.

[Karen]

Here is what I do.

I don't charge immediate family. I host my husband's site and my two sisters sites for free.

My brother-in-law, my sisters clients, my friends etc pay my normal rates.

No, I don't give discounts to friends. For three reasons. First, I have bills to pay and business is business. Secondly, if you start to give discounts then they expect discounts ... give in once and you start a slippery slope where they will ask for more and more. And thirdly, family / friends ask for more than normal clients. For example, a paying client who doesn't know me will log into his control panel and set up his email accounts. My family on the other hand will simply pick up the phone, call me, and give me a list of what they want me to do.

The third point is the most important one, because I value my time. If I have to spend alot of time assisting family and friends (simply because it is easier for them to call me then it is for them to learn how) then my time is being redirect away from my path.

I don't mind taking the time to do what my family or friends need me to do, not a problem. But if I gave free accounts to all of my family and friends and then spent as much time as I do helping them with every little thing, I would get nowhere really fast.

If you establish your rules up front and everyone is happy.

Karen

[GSchubert751]

^Just what Karen said. Sometimes i give people discounts that give me hookups on other things, i gave a friend of mine a hookup on a lot of DVD's but she gave me a hookup on some clothes (she works at foleys). The only other people i give disocunts are family

[bps092]

That makes sense Karen. I was a little too nice to some people I know that I hosted and as you would say they would call me even if it was as simple as logging into their webmail or pulling the pop3 into outlook when all of those answers can be found on our website. A lot of our clients and customers come to us because we are indeed small and more friendly than bigger companies that sign you up and go on to the next person. It's more personal, but that too can lead to problems. Some people I barely know and with all do respect, many call me personally and talk to me like I have known them my entire life. It's kind of strange sometimes, but thats the reality of the situation. From now on I have really set the foot down. It's just interesting how a business transaction can shed light on an individual's side that you normally aren't aware of even if you grew up with them.

[focusben]

Giving people discounts usually stems from the fear of being rejected - hence, no business.

But if you go ahead and find people looking for your services, they will gladly pay what you're asking for, even if you think it's too much.

Be sure to put out the value that you want your customers to have. Some people take up a lot of time in terms of "customer service" and hence, they should be charged the full price.

However, if this service you're giving is somehow linked to your own accountability, then at least, there should be a plan to follow through with.

Not everyone is going to like your prices. So they can go elsewhere. It's called free enterprise.

I charged my sister for building her computer. And if she wants me to fix anything, I'll charge the normal rate. At least she has her own buinsess in which she can claim as an expense.

Small business owners have a great advantage over everyone else who's not. I do more business with business owners than consumers - and it's more lucrative.