I don't give discounts. It cost the same to make the hay whether they buy 1 or 1000. The inputs are the same. When you buy fuel ,fertilizer , or equipment you don't get a discount. Walk in the store and tell the clerk you want a discount for buying 100 gallons of fuel or you are going to only buy 10 and go down the road and buy the other 90. They will laugh at you. If they buy 100 bales at a time ,does that hay have any less inputs , NO. The money has already been spent long time ago on fertilizer, lime, fuel, equipment and time . Don't forget all of this just because it was a few months ago. When you were working your ass off they were out trail riding and having a good time saying " That old dumb farmer down the road will have my hay for me this Winter".
Not exactly.....I do get discounts for quantity buying regularly. When I buy net, I buy by the pallets. Twine by the pallets. When I buy chemicals and NPK i always get a discount for pre-pay. So yes, I do receive discounts by the way I do business. So I offer discounts to people that buy in quantity all day long. It’s just smart business....it’s also smart to not discount hay if you don’t have to, but there is a point in which you will have to “discount” hay. My very best premium hay, barn stored in bundles and rounds are subject to the same rules. I have a customer that buys 8k small squares a year....do you really think he would buy from me year after year if I didn’t offer him a discount for his hard earned money when buying hay for the last 5 years? Moreover, why would you not want to give that guy a discount? Do you not appreciate him? He expects quality, on time delivery and he gets that....I expect payment on delivery and I get that....both parties are happy and I’m on my way with a check.
Now a lot has to do with your starting price...if you’re in the high “average” or in the low “average” price to start with....I happen to start high and then I have some wiggle room. Now if you were making something like ditch hay or mushroom hay, there’s no room to work....
Another example, I have a guy that I have to stop what I’m doing and load him one round bale at a time....he pays $60 for that bale of hay. I just delivered 640 bales to a customer, do you think he should pay the same? He didn’t, he paid $50......but I got a check and he was happy and I was happy.
So, while it may seem the best thing to do is never discount anything, that would be the perfect scenario....in most situations, it only prudent to offer discounts to loyal volume customers.