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Price reduction for good customers?

post #1 of 9
Thread Starter 
I have a very good customer who orders from me relatively frequently for different family or friends birthdays, my question is, that since I recently raised my prices (by a paltry sum) and I know that he does not have a lot of money should I still charge the old prices to him or explain that I have gone up and hope that he stays with me?
post #2 of 9
This is entirely up to you, but I would worry that he would let others know that he gets a discount. Then anybody he refers would be asking for the same treatment.

I have charged my repeat customers the old prices once, while telling them that pricing has gone up but I'm not raising theirs until the next order. I haven't had any issues as yet.
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post #3 of 9
I would raise them, even for him. If he complains, then you may be able to negotiate. I will admit, I'm not a price expert, though.
post #4 of 9
Thread Starter 
Quote:
Originally Posted by karateka

This is entirely up to you, but I would worry that he would let others know that he gets a discount. Then anybody he refers would be asking for the same treatment.

That is my worry.

I have charged my repeat customers the old prices once, while telling them that pricing has gone up but I'm not raising theirs until the next order. I haven't had any issues as yet.



That's a good idea, thank you icon_smile.gif
post #5 of 9
I've been a loyal shopper at my local supermarket for years. When they raise their prices, they don't exclude me from the increase. Nor do they give me anything special for being loyal.

Anyone who walks in for the first time and gets a "savings card" receives the same benefits and sale prices that I do. The theory being that the store does things to encourage future loyalty in ALL of their customers rather than rewarding loyalty of just those who have already been loyal.

This way everybody knows what to expect and stays with you because they know you treat them well and fairly. If you give this one customer a loyalty reward, no one else will know about it. So it gives no one else any motivation to become loyal like he is to get the same reward. Whereas occasional deals and sales that everyone is eligible for give ALL your customers a visible incentive to remain your customers.

In other words, the "encouragements" become the "rewards" for loyalty and you don't have to keep making these tough little one-by-one decisions to reward this one or that one.
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post #6 of 9
Thread Starter 
Thanks for all the input, I think I will do as Karateka suggested.
post #7 of 9
My most loyal clients get free cupcakes not discounts.
post #8 of 9
Thread Starter 
So if they call for an order of cupcakes do you give them for free or only if they order a cake do you add some cc's?
post #9 of 9
The freebies are not typically tied to an order. Sometimes when I have a cake to bake I make a couple extra cupcakes to give away. Other times I bake specifically for that purpose. This Wednesday I'll be baking a few cuppies for my most loyal customer. There's a flavor I introduced recently to my menu and she's been so eager to try it. My minimum order for cuppies is 2 dozen, I'm not going to make her order 24 just to try the new flavor when I can whip up a few for her so I told her to forget about ordering, it's on the house. To me good business is more about building relationships with loyal customers than making a particular sale. She's shown from her past actions that she supports my business, I'm giving up a sale but I know it's an investment.
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