TLDR: Before you open, Otherwise – never.
Hi! I’m Garrett and I run a coworking space called Hygge.
Recently, I received the following questions:
“We have been getting a number of visitors / leads trying to ask for discounts on our rates, do you get these in Hygge? How do you deal with these requests? We did check around and confirmed that our rates are still competitive.”
Let’s break the questions down one by one.
Do you get these type of requests at Hygge?
Yes, we do – in couple different forms.
- Nights & weekends
- “I’m only coming in once a week”
How do I deal with these types of requests at Hygge?
I remember the early days when we had slow growth at Hygge and I was feeling a little nervous. We would get an occasional ask of “Can I get a discount?” or “Can I trade you for membership?”. My response has always been no. Here’s why.
The risk in discounting is:
- You devalue what you have built. If you’re confident in your pricing and offering then stick to it.
- You alienate current paying members. No one wants to find out they signed up first and are paying more than someone else.
I only advocate for two discounts: Pre-open or founder discounts, and long-term membership or contract arrangements.
Our monthly membership is currently $124/month. Members who joined within X months of Hygge opening were offered $99/month founder membership for life. It’s not a huge discount but it’s enough to get new people walking in the door.
Long-term Agreement Discounts
In a business that is dominated by month-to-month membership options commitment is a big deal and should be rewarded.
Here’s what I do: For flexible and dedicated desk memberships, every six months paid up front I give a month back. For private office space, every twelve months paid up front I give a month back.
Use discounting very sparingly. Be confident in what you built and the price you put on it.
If you’re discounting memberships differently and it’s working (or not) comment below or send an email to [email protected].