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?

[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.

[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.

[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

[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.

[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.

[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!

[LiesDoNotBecomeUs]

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

[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.

[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?

[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.

[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!!

[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

[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

[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

[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 ?

[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.