How do you handle customers asking for a price discount?

CannaBusiness
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Recently I’ve been selling my products for cheap to get my brand awareness up. I.e. one item that I sell I make $3 per unit while the retailers make $10… (I know I know)

Anyways, recently I’ve been selling them this new product where they are still making a decent profit (100 percent markeup). However they are complaining they’re not making enough! I guess they got used to making more from the other items I sell

How do I handle these customers and how do I explain to them that they’re getting a great deal…

Literally I’m taking a loss sometimes, considering I got bills to pay like insurance and rent.

Any advice?

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I guess，if your product is competitive then you can reason with clients，if it is NOT competitive ，I mean，your client can make more money selling same quality products from others. Then there is literally no way around it.

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Yeah it’s very competitive, thing is they can get the same product (much shittier quality) for better pricing…

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I know how it must feel.
What by-the-book is，you need game up your marketing，so that the general does not know they have the option for a better quality product. Good Marketing helps your resellers to do his job better，so they tend to be more loyal and less complaintive， otherwise it is BAD MONEY DRIVES OUT GOOD situation.

Plus，it is always the “cheap” that sells more.
So，just try to reason with your reseller that you are doing the best you can.

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You should have framed it as a price promotion outside of book value. You can’t raise the price on customers. They will even belly ache about inflation/cost of goods price increases every year.

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Ask for a tip instead.

Kidding.

You gotta rework the value / brand / packaging maybe to represent your price. If the product speaks for itself when tried. Give samples free.

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You get what you pay for. When someone tells me they can get it cheaper I tell them to go there, they come back a week later for the good stuff…

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Im under the impression retail markup is way over 2x. Isnt cbd like 40 cents a gram? Do you have very expensive packaging and labels? That cost way more than the cbd.

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How much does it cost you to make that $3

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I had someone try to hit me with $150 for an ounce of cbd… I laughed out loud, and declined. Don’t know what baring this has on anything… Just thought I would share

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Diversify by crushing pavement

Aka hit all the retailers in your area and then venture outside your zone

Many industries take aoss until they establish brand recognition…then they charge a premium when demand for their product is established.

I know it’s tough with ever-shrinking margins but if you’re not an already established business in the food chain of CBD/ hemp commerce, and you don’t have a serious marketing budget or some disruptive new product you should be happy to make any profit at all

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And this is crucial but it’s one of the hardest things to do when you are hurting for cash.

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Yea but often times when hurting for cash happens it just compiles and gets worse. It’s better to hurt for cash fo ra week than hurting for three months so to speak.

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Absolutely. It’s hard to drill that into entrepreneurs sometimes though

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Good book On the subject of how to handle customers. It’s a book called “how to keep a customer for life”.

An excellent excellent book. It is written by a car dealership family in Dallas Texas. Sewell auto group.

IMO One of the Bibles from the world of selling.

And As always good luck and good selling!

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Anyone who is good at business knows that you have to be able to say no. The customer isn’t always right, and they are sometimes an asshole.

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“sometimes”

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There’s a reason haggling over prices is called “beating him up”

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Also people have this disease feeling that takes over their better sense of judgement. They literally think the less they spend on everything allows them to spend a fortune for a 15k or more glass piece made by some wookery over a period of four weeks but four hours of work…but they want the deal for the hardware that makes them money. Literally the mentality of some of the canna industry folks is like a widespread disease that even a pill won’t cure. Some of the people are Eve the heart of negligent litigious actions that make a stain on the industry.

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