Don’t Allow Mate Rates In Your Business!Back
Here you are.
All your hard work has finally paid off and you are the owner of a successful business. It’s time to pop the champagne and go on that well-deserved holiday break, right?
But then just as you’re heading out the door, a friend or family member calls. Could you please do them this ONE TINY favour. And you won’t charge too much, right? After you’re best friends, family, thick as thieves, and whatnot.
Unfortunately mate rates are a huge problem in start-ups and even established businesses and cause entrepreneurs to lose out on big profits. And this simply because they don’t want to ‘offend their family and friends.’
Where is the support?
Ask yourself this question: Are your friends really your friends if they expect you to discount costs for them while putting in the same amount of work you do for a full-paying customer? Or ask yourself this: Is your family truly supporting your dream if they want you to charge them next to nothing for their ‘little favours’ that always turn out to be a lot of work.
Surely if they respect your hard work and your dream, they will contribute to it fully and in any way they can?
What do I do when someone asks for a mate rate?
When your best friend or family member approaches you and starts asking for discounts, simply cut them off in a gentle manner and remind them that you worked non-stop to get where you are and you certainly didn’t become successful by approving mate rates left, right and center. Of course, not everyone will take kindly to this, but if they are truly invested in your ongoing success they will understand and respect your decision.
More than 80% of people expect discounts from friends who own businesses
If you have been asked to apply mate rates, you are certainly not alone. A survey done in the UK in 2020 revealed that over 80% of people in the country expected discounts from friends who are plumbers or electricians. The survey results also showed that while tradespeople love helping out their friends and family it meant them missing out on crucial work hours and of course profit.
Mate rates are a limiting belief that could be detrimental to your business
Allowing unnecessary discounts often come as a result of a negative money mindset. As soon as you start turning things around and being positive about your goals, it will become a lot easier to see that your friends and family should in fact be your cheerleaders and not just expecting favours all the time.
Never undervalue yourself and the progress you’ve made through sheer hard work, and certainly do not let anyone undervalue your business.
Stop playing small and you will see huge results.