Okay, I've teased you long enough.  If you remember I asked in a previous post what the welder who built my father-in-law's trailer should do when I bring it to him for "refurbishing."  I told you it was twenty-plus years old and that it has been a great tool. I asked if he should do the repairs and charge me full-cost, half-price, or repair it for free.

Well, most of you seemed to lean toward the half-price option. Why?  Because it somehow seems fair or just? Perhaps I led you astray (purposely) by mentioning the welds and you assumed that there was some poor workmanship involved?  Far from it in my opinion. It is a quality job that has simply succumbed to the aging process (I can relate!).  

The key, therefore, in my estimation is in the question I asked. What should he do from a business perspective?  From a business perspective I think it is only fair that he charge the full cost of his services. After all if we assume that the job was done well in the building phase and the deterioration is simply due to time and use, then he holds no responsibility to discount his prices.

In fact, he should not discount the work because the cost of his labor and overhead (see my name plate . . . an overhead expense) have not diminished.

Uncomfortable yet Mr. Do-gooder?

I say he should not reduce the price from a business perspective and I believe this to be true.  However, that is not to say that he cannot reduce his price for some other reason. Many times those of us in business do this and for good reasons. We deliver services below our costs or even pro bono.

So, if you feel like the welder could "cut me a break" on the price what would be some valid reasons for deciding to offer a less than full-price option?

I guess on reflection I'm not yet quite done holding you in suspense.  Next, I'll tell you what I think some good reasons to give away services.

Bryan

Available eBooks:

Private Practice through Contracting: Decreasing dependence on insurance.

Engaging Your Team: A framework for managing difficult people.

Family Legacy: Protecting family in family business.