What do I do when asked for a vendor discount?

Vendor discount: The unspoken rule

It creates a sense of community

One of the reasons that I like to offer vendor discounts is that it creates a sense of community amongst the stallholders. It also puts you in the good books with other vendors, which is a nice bonus, but not the reason I give discounts.  Having a staff discount is just a habit from my many years working in retail.

How will I know when to offer someone a vendor discount?

You won’t always know when someone is a fellow vendor to offer them a discount. Don’t feel bad if your store does offer vendor discounts and you unknowingly forget or don’t know to offer one. It’s happened to me, and it happens to me when I buy from other vendors.

I usually get lunch from a stall a few lanes away from me. They are quite busy and have a few different staff. If I am served by the owner, or if the owner is present, I am given a discount. If the owner is not there and there’s a new staff, I pay full price. It’s never an issue for me either way.

I was present once when another well-established stallholder was in line in front of me at this food outlet and wasn’t offered his usual discount from a newer staff member. He got quite snappy and offended, asking for his discount. Which was just not at all necessary. His entitlement was off the charts.  The poor staff was frazzled by the time they served me. Of course, I never brought up any discounts.  Vendor discounts are a privilege, not an entitlement and you should never demand one.

The downsides of offering a vendor discount

While I generally prefer to offer vendor discounts, there is a downside when a vendor brings their family and friends to visit the markets. I feel obliged to give the entire group a discount. This may work out well in bonus sales, or it may be lost profits if those people were going to shop from me anyway. It’s a bit of a double-edged sword to think about.

Vendor discount reciprocity scenario

There’s also the vendor discount reciprocity scenario. There’s a stall where I sometimes get my lunch, and as they are very affordable, and very tasty. They don’t do discounts of any kind, which I wholly respect.  If they ever buy from my stall, it will put me in an uncomfortable position.  I would want to offer them a discount but would not want them to feel obliged to return the favour.

Never ask for a discount

The one thing that I don’t like as a vendor is when other vendors straight out haggle me or ask for discounts. I find it plain and rude. Other vendors should support each other and try to raise each other’s businesses, not ask for discounts.