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How to respond when a customer asks for a discount

Discount requests are normal. A planned answer keeps you from agreeing out of nerves.

  1. Know your floor. Decide ahead of time the lowest price that still pays for labor, parts and overhead.
  2. Explain what the price includes. Walk through the scope, materials and warranty so the value is visible.
  3. Offer scope changes, not price cuts. Removing an optional item lowers the total without lowering your rate.
  4. Offer fair, written incentives. A repeat-customer or pay-on-completion rate is easier to defend than an ad hoc cut.
  5. Be willing to walk away. Some jobs cost more than they earn. Decline politely.

Common questions

Should I ever discount?

Sometimes, for a clear reason such as repeat work. Keep it written and consistent.

What if a competitor quoted less?

Ask what their quote includes. Scope and warranty often differ.

See also the contractor guides and free tools.

General information, not legal or financial advice. Verify with your attorney or accountant.

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How to respond when a customer asks for a discount