Mates Rates?

[kensington09]

Hi,

I have recently started up a small business from home. A family member (keeps on) asking if I am charging family / friends full price.


Does everyone give family / friends 'mates rates' while you are still trying to build up a decent profit?

[VladmirsPoutine]

@candycaneframe

I think it depends on what your business is

Cleaners etc. I'd not expect mates rates

A nail technician then yeah I'd be surprised if friends charged full price, same applies to waxing, general beauticians. As the paying for time element doesn't really wash as it sometimes forms part of our general catching up

Pretty much this. My good friend is a beautician and gives us about a 30% discount and unreasonably timed appointments. I don't think I'd want a friend to clean for me but this logic applies; I'd pay full rate - say if my friend was a lawyer.

[Kite22]

I have friends who started their own business (as decorators if that is relevant) and they rather cleverly IMO worked out what hourly rate they would need, then added some extra on for what their fictional hourly rate was, and told everyone they knew they could do them "mates rates" which was the actual amount they needed to charge to cover their time.

I thought it was genius. All the customers were chuffed they were "getting a bargain". Friends had lots of business, and still made the hourly rate they wanted / needed.

Is there scope for something like that ?

[Puzzledandpissedoff]

Although it’s not being said I’m being made to feel stingy for charging the set prices

Too bad - for them, not you

As so many have said, once this starts it never ends and the group of those expecting freebies will just spread as others join the "me too" brigade.
Far easier to say no in the first place than try in vain to drag it back once done - less potential for upset too, as favours of this sort can easily lead to entitlement

[kensington09]

It’s discounts for returning customers and also freebies for someone providing materials (that I pay for) that are now being asked for. I’m just going to stick to no, we need to become established and making a decent turnover, I don’t want to work for free

[SirCharlesRainier]

@Wonnle

Depends on whether they have any skills/services that they could repay the favour with

In that case I'd rather just charge full price and pay full price tbh

[TokyoTen]

Just reply breezily "ha ha sorry, no mates rates at the moment, I'm still trying to get going!" And then never give the CF anything!!

[GonnaGetGoingReturns]

I'd say from family/friends who have/have had businesses, they rarely do mates rates, if they do they're purely a one off and kept quiet and if anyone asks they say no.

You should say no too.

[RealBecca]

Can they give you anything back, like a good 5 star review or clear images of the product in use? Are they friendly with your target audience and able to get it seen?

[LovelaceBiggWither]

Once a friend came over for dinner and we were just chatting. I started talking about some of our son's medical difficulties and she very dramatically said Stop! I do not give free medical advice. I was all oooooooookay, you're not even remotely expert in the area of his issues and it was just chat about the family.

30 minutes later she started talking about her father's memoirs and how fascinating they are. Apparently though they need a lot of editing as English is his second language but surely we would be so interested in helping get this fascinating story in front of publishers that we'd do it for free. How I laughed.

[LiesDoNotBecomeUs]

Just tell the CF that your very fair prices are 'mates rates' 🙂(and you are friendly to all customers).

[Gerdticker]

I have a small business.

My rule is - Free or Full price.

So occasionally I do a favour to a friend and give them a freebie. This is very rare though! Generally I politely decline any requests for discount; my prices are well considered and I haven't got room to discount.

I also never ask any one for a discount.

This keeps things simple for me, and causes less heartache/resentment/misunderstandings. I actually try not to work with friends/family if I can avoid it!

[Whichwhatnow]

I don't have a small business but a weirdly high proportion of my friends and family do (proper businesses, not MLMs!).

I'm often offered mates rates and always say no - I know how hard it has been (and continues to be) for most of them to build up their businesses, and I want to show them that I value their work.

[Suzi888]

DH always gives friends a discount and has done things for free- it’s not his full time income though. It’s very niche.

[candycaneframe]

I think it depends on what your business is

Cleaners etc. I'd not expect mates rates

A nail technician then yeah I'd be surprised if friends charged full price, same applies to waxing, general beauticians. As the paying for time element doesn't really wash as it sometimes forms part of our general catching up

[HunterHearstHelmsley]

I have one friend who gives me mates rates. I would never have asked her to though! It's quite high profit work she does and she gives me a 15-20% discount.

Otherwise I always pay full price.

[myleftventricle]

If they're a fantastic person in your life, fine. If they do stuff for you or someone you care about and don't charge you, fine. If it's a great cause, fine. But if they're generally a scrounger or there's any remote chance they'll be back again for repeat freebies then say no. Mixing business and pleasure does not always work (in my experience never). People take the piss, make you jump through hoops to actually get the job done, take their time about paying (assuming they even do), and don't bother to say thank you. Save your discounts and freebies for the really good paying customers. I'll do free bits for a really good customer of mine because I know it's appreciated and they're lovely people. I've been treated appallingly by 2 people who were supposed to be friends.

[Lastqueenofscotland2]

My friend does my nails for me and I’d not dream of asking for a discount!

[AloysiusBear]

Im not a believer in mates rates.

However, I do think its worth being aware that lots of people asking for discounts etc can indicate that they don't perceive your pricing as representing good value, in which case you might want to rethink what you offer, whether the demand is there at a price point that makes you a decent profit.

[2bazookas]

Don't do mates rates. Charge the same rates for all.


If you offer variable charges, you'll then have the embarassment of people you don't even know introducing themselves as a friend of your friend/brother/work colleague who has told them you only charged £100 and did a great job. When you reply, the charge to you will be £120 then you immediately have a disgruntled client who thinks they've been overcharged or taken for a ride.

Even worse, is offering a one-off freebie rescue to some poor deserving person .......who then tells her pals that if they play their cards right they can get the same at no cost :-(.

[AuntSalli]

It’s actually taken me ages to get my father-in-law to come round and quote me for a bathroom because I think he thought I wanted him to do it for free where as I’m actually perfectly happy to pay, I just wanna keep it in the family and of course I can trust him to do a good job.

[KassandraOfSparta]

Agree with everyone else - full price.

The only caveat would be if you were doing something like baking cakes and you typically added in a bit of "profit" to buying the ingredients as well as the labour costs. I probably wouldn't charge a premium for materials I had bought to a close friend but labour would be full charge.

If your business is a service one where in essence people are paying for your time and expertise like a dance teacher, website designer, artist, then there are no materials to be bought and everyone pays full whack.

[MotherOfWhippets]

I always think it must be a right pita to have a business like this or something like hairdressing - where everyone who has the slightest connection to you expect a discount.

I have a friend who is an artist - he doesn't do mates rates but for friends he will do a slightly bigger piece or help you frame it or whatever. That's nice enough.

[Alwayswonderedwhy]

No. If they value what you do they won't ask.
Do employed people sometimes work below their hourly rate? Nope

[chipauchoc]

If you offer then mates rates or gift, if they ask then they pay the same as everyone else. Amazing how many 'friends' you'll have wanting things on the cheap. I've been stung many times and then don't hear from them until the next time they need your product/service. I've also had friends cut me off because I've said I can't do it for them at less than going rate. People are CFs

[Wonnle]

Depends on whether they have any skills/services that they could repay the favour with