Discounts and taxes

Comment by Walt Bennett on July 29, 2010 at 2:07pm

Don't even dare not charge tax, unless you do like we do and will tell a customer paying cash that we'll pay the tax ourselves because we don't want to carry small change around. About two years back it turned out the 'customer' was from the state revenue commission and if we hadn't said that, she would have hit us with a fine. Most states are revenue hungry and looking for any way to collect fees and taxes, so I wouldn't be surprised if there isn't an increase in auditors floating around at just about any venue.

When someone asks for a discount, I ask them what their profession is and if they give discounts regularly. People asking for them are stuck in retail shopping mode and don't understand that you make what you're selling. If they get obnoxious, I'll go so far as to refer them to Walmart.

Comment by Larry Berman on July 29, 2010 at 3:10pm

This probably should have been posted to the business section of the forum instead of a blog.

You don't say what your medium is and whether you offer multiple piece discounts. All of that is part of how to answer people asking for a discount. But as for charging tax, we don't charge tax, we collect it. If you respond that way to your customer, they can better understand.

Larry Berman
Digital Jury Services
http://BermanGraphics.com
412-401-8100

Comment by Jackie Russo on July 29, 2010 at 4:32pm

Thanks Larry, I'm new to the site so I apologize for posting in the wrong area. My medium is contemporary glass wall sculptures. I love the answer about collecting tax!
Walt, I would never not pay the tax, it's just another way of the customer getting another 6-10% off. An out the door price. I think I'll use your line about if they give discounts in their business.

Comment by Warren Townsend on July 29, 2010 at 5:04pm

I too get asked all of the time for discounts. I just tell them that they are asking for me to cut my wages and do they like to have their wages cut. Some items I put in a little extra though for bargaining. Customers think they are getting a deal, well really they are getting one heck of a deal.

I was Ann Arbor art fair visiting, looking at one guys booth that had some metal, he looks wore out, but kept repeating "hey folks everything is 70% off". Now I think that might be against the rule because some shows you are not allowed to advertize discounts. I guess he really needed to make a sell.

Comment by michele norman on July 30, 2010 at 8:07pm

Hi there! I think that is sooo difficult for them to understand our effort, and the hours invested in a project, that if I give discounts is like not giving my work the value that deserves...maybe I´m wrong, but is hard for me even to say goodbye to a piece!
Taxes? I think it makes me feel more serious about my Art.

Comment by Diane Wright on July 30, 2010 at 8:47pm

I have occasionally been asked what kind of discount I can give someone if they buy more than one piece of jewelry. I have given 10% - 15% off but I don't like it. I thought I might tell people that I will give a 15% discount if the total amt bought was over $200 or $250 I have not tried that yet.
As far as tax, I add tax on because I sell at different venues with different tax rates. Some colleagues I know increase prices to include the tax and round the price so that they don't have to deal with change. They just tell customers tax is included in the price. They then back it out and pay the tax when they file. I have never had anyone ask not to pay tax. I did have one person who was surprised that tax was added - I just said that I had no choice.

Comment by Jackie Russo on July 30, 2010 at 9:52pm

Thanks Diane and Michele for your input. It's good to know how others are dealing with these issues.

Comment by Ann Marie Crosmun on August 1, 2010 at 12:34pm

Hello Jackie,
What I learned long ago, was to say when they come to 'check out'; "Is there anything else you would love to have? (that usually gets a chuckle, & a lighter mood) They'll say 'no', then I respond "That'll be 'x' dollars, plus tax". Very rarely, (and I think that that is because of my 'light & jovial' manner at check out), does any one ever complain. If they do, I tell them that that is (whatever state I am in)--it's the states' policy. If they insist, I then say that I don't want to get into trouble with the IRS. By then, the topic is dropped and the item is paid for.
As for discounts, my husband gave me a great idea; when they are purchasing a necklace, I tell them that I will add the earrings at no expense (not for 'free'--that cheapens it). Most of my necklaces have a pair already with them, and I have already factored in that cost. So, everybody is a winner. If they say that they don't wear earrings, I suggest that the earrings would make a great 'thinking of you' gift to a friend. With your product, is there a tiny piece of glass (like a mere flattened marble---you could call it a lucky rubbing glass stone---I have one, and it makes a great 'worry' stone)--that you could give them as a 'purchase' gift? And, maybe, only people who purchase, can have that 'gift'.Your version of my 'earrings' gift......
Sorry if I ran on a bit. This is my first post.......
As you may have guessed, I am a jeweler. I carve fine silver and make woven bead elements.
Ann Marie

Comment by Barbara Nelson on August 1, 2010 at 2:27pm

The question of a discount for a purchase of more than 1 piece always brings out the smart _ss in me. Luckily I get a hold of myself and politely explain that I make each piece one at a time with out the benefit of a discount. If they persist I explain that if I were ordering this stuff from China I would be glad to discount it and pick up the phone to order more. Other discount requests get met with "you are asking me to discount my labor because I can't discount the cost of materials. That being said, if I am absolutely sure that a discount will make the sale I take control of the dollar amount. I never let the customer tell me how much they would consider an appropriate discount. If the sale is in the hundreds, I hem & haw then offer them a 3 or 4 dollar discount. I do not say another word until the customer responds. I stand there and look them in the eye until they respond. Usually the sale is made without the 3 or 4 dollar discount. On occasion I have to give up the discount but I don't loose any sleep over it.

Comment by Jackie Russo on August 1, 2010 at 3:00pm

Thanks Anne Marie and Barbara for your input, really good stuff. Hearing from other artists who also value their work gives me the confidence to stick to my guns. I did have one customer walk away because I didn't give him a discount. He came back three times that day to see if my mind had changed. Eventually he came back to pay the full price but by that time someone had bought the piece. His wife was livid, I think he spent a long time in the dog house!

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