Consistent or Different Rates For Business Size
Business

Consistent or Different Rates For Business Size

This made me think as the other day a person was telling me not to accept an offer from a company that wanted to offer a contract they would be significantly less than what the industry average was with their rationale being they are offering a longer term contract and would like a discount I suppose. So nothing unusual about that as people want to try and maintain a consistent rate. But just today the same person was asking me to accept an offer that was extremely below standards. I suppose the reason for it was that this was for a small local company and they don’t normally have big budgets. So it made me think, do you actually charge the same rates regardless of who the customer is or do you tend to price things differently depending on the size of the company?

Usually, companies give discounts to non profits or schools as an example. But if you were say a plumber I don’t normally see people charging more or less based on the client’s net worth versus the actual job difficulty itself. I know for certain products such as high-end sunglasses companies often stipulate retails must charge a certain price as to not devalue the brand or they risk losing the ability to sell it. So in many ways even for service based businesses that is why one tries to be consistent and not devalue their own worth.

I can imagine the potential conflict if you clearly offer one group of people a different rate as your other clients could then demand those same rates or they will go elsewhere.

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