'Mates rates'

[caulioccolii]

Have recently started a small business making bits and selling online.
You can probably guess what.
Friends, family, as well as people in the local area interested which is great- actually I'm a bit snowed under already!
So AIBU to charge family the same rate as people ordering online? Friends are okay to pay, I really think they wouldn't have asked if they didn't want to pay- though do I charge full price?
Family on the other hand- they are so generous and lovely and give us hand me down bits when they can. To ask them for any payment atall would make me feel super awkward but I've spent a day keeping up with family orders and without getting a return - it's just not viable.
Need new resources tomorrow and will therefore be in negative profit without getting some income.
What's reasonable?

Depending on various factors, I'd agree that 10-25% discount is reasonable. Less than 10% seems a bit "nothing" and more than 25% is very generous.

If you want to be very generous just charge for materials, but otherwise 15% perhaps.

For More info- small Items £10 or less.

If it were your sister/ brother in law/ MIL etc making the item- would you expect to have to pay?

How extensive is your family? Say it's face masks: I'd probably make a couple each for immediate family members for free, but then tell them it's X discount but they can only order for themselves - not for their friends. Every one else you charge full price.
Also while some may pay more for pretty fabric ones initially, they will probably end up buying in bulk the blue ones which are on sale everywhere now (if it is face masks...).

If anyone asks you to work for free, say no. Only time it's acceptable is for example "Can you please make your x as my -insert occasion where you would bring a present of similar value- present instead of something you would buy?" Unless it's a massive wedding cake👀

I agree with 10% off for family.

If you're making stuff, discount the materials but charge for your time (or the other way round). But don't do it for free or at an extreme discount. You're running a business not a charity and if spending time on family and friends' "freebies" or heavily discounted goods means you haven't got time to work on the proper orders that will give you an income, it will become an expensive hobby.

@caulioccolii

For More info- small Items £10 or less.

If it were your sister/ brother in law/ MIL etc making the item- would you expect to have to pay?

Not only expect, but also insist. If I asked for it.

Could you give the item to them as a gift for their birthday or Christmas whichever is closest. If this is your income then doing it cheap or free for them all won't really work. Or can they reciprocate in some way?

Tell them you'll have to ask for costs, and they get 2 or 3 each but not immediately - so maybe tack then on a day's work one family member at a time?

And be very specific about costs - elastic especially has tripled in price since February

Same as @SchrodingersImmigrant, I’d actively support a friend or family member’s small business, especially for smaller value items. My cousin is a kitchen fitter and he knocked a bit off the price when he fitted the kitchen, but that’s different.

I would ask for the full price tbh.

I think it depends if you want to use them as free advertising. So maybe don't charge them if you want them to put it on facebook and tell all their mates for example. Or work out how many free you are going to do and first however many dont pay.

@RaininSummer

Could you give the item to them as a gift for their birthday or Christmas whichever is closest. If this is your income then doing it cheap or free for them all won't really work. Or can they reciprocate in some way?

That's the thing- they have 'sort of' reciprocated first- in that they pass us things we need for our DS. Nothing that takes their time , just bits and bobs they no longer need. I don't feel like I owe them necessarily as they'd not offer if they didn't want to. To provide freebies would be taking my time away from potential customers and they might be few and far between, who knows! I don't want to cut off their generosity but I can't afford new stock without a payment.

It’s making masks isn't it....

Most of my family and friends refuse discounts but I offer one for family and friends at 15% off.

Charge them of course. You are running a business. I don't have to give a discount but it makes me feel good. You're friends and family may be the best form of marketing as they are likely to post pics online too!

Definitely charge them for materials but I'd give up your time for free. Agree with others though that you should only do it in spare time rather than taking the time you'd be using for paying customers, so tell them that you'll do it but they'll need to wait.

Thanks everyone - just don't want to be seen as cheeky for expecting payment. I'm not a 'grabber' in anyway- but as PP's say, a business is a business . Thanks

@caulioccolii

Thanks everyone - just don't want to be seen as cheeky for expecting payment. I'm not a 'grabber' in anyway- but as PP's say, a business is a business . Thanks

It's not cheeky to expect to be paid for a product you make or service you provide. It's business. So don't stress it

I have run my own business for 10 years now and it's a slippy slope with mates rates. Some people go on to expect it time and again and people you've not heard of for years suddenly come creeping out of the woodwork if they think they can get it cheaper from you.

Immediate family & best friends only would be my advice. Anyone else, full price.

Certainly not for free. You have to cover material costs at least, even for family. Friends... perhaps costs plus a discounted rate for your time? For me, it depends on how close they are really.
It can be awkward but don't devalue your efforts. If what you're making is worth what you are charging, that should be the price, whoever is buying.

If I was making something as a hobby I would give them to family and friends, completely different if I was trying to get a business off the ground I would offer a discount.

I pass clothes to younger cousins frequently and I am glad they are getting reused, it saves me going to charity shop and nice to see them on nephews. It is lovely the family passes on clothes and of course be grateful, but you don't owe them free work.

Just be honest and tell them you cannot afford to give them free or heavily discounted products

If it were me I’d give them one face mask each (only parents/siblings and in-law equivalents).
I’d make it clear I was utterly snowed under, how pleased I was to be busy, etc.
If they wanted more, then I’d then make it clear Id need to charge them full price but would be making them to the same standards.
For all you know, they’re trying to be supportive when they say “ooh, that’s nice, would you make me one?” rather than being grabby.

Ok. So I'm going to be honest and explain that I can't afford to Do it for free. (It's not just a hobby, a way back into work )but I'll offer a discount, and that it's not just the materials but my time and effort.

I think that's fair.