Pricing strategies in commission work often balance foresight with flexibility, especially when supply chains signal trouble ahead.
A department manager crunched the numbers last fall, factoring in warnings from vendors about shortages and hikes, then set bids to secure a modest profit margin. Most clients accepted the adjustments without fuss, recognizing the value in quality and speed.
One affluent regular pushed back hard on a major project, leveraging past deals and threats to shop elsewhere. The owner overrode the manager’s calculations, demanding cuts to match lower-grade rivals.
Invoices arrived months later, devouring nearly the entire payment before labor even entered the equation. Scroll down for the boss’s stunned reaction, the quiet reminder of ignored alerts, and Reddit tales of billionaires who still haggle over pennies.
A forward-thinking manager raises prices for looming inflation, but the boss slashes them for a whining VIP, forcing the project to be done at cost or worse
Discounting services for affluent clients to undercut perceived competition often erodes profitability, especially when informed pricing accounts for rising costs.
In this department manager’s experience, forward-thinking bids incorporated supplier warnings about inflation and shortages, targeting 8–10% margins.
Yet, the owner’s intervention, slashing quotes for a high-profile, financially secure customer, reduced the project to break-even or loss once materials hit 90% of revenue, excluding labor.
This validates the manager’s caution: selective concessions attract price-sensitive buyers while alienating those valuing quality and timeliness.
Pricing strategy experts stress aligning rates with value delivered, not rival undercutting.
According to a Harvard Business Review article, relying on reactive discounts can undermine a firm’s value positioning and erode long-term pricing power. Maintaining premium positioning and limited discounting helps protect margin integrity.
Similarly, the Professional Pricing Society advises cost-plus models incorporating subcontractor forecasts, as ignored in this case, prevent margin compression, evident when actual invoices shocked the owner. Supply chain disruptions amplified the misstep.
A recent McKinsey analysis of the materials industry highlights rising price volatility across supply chains and custom-manufacturing sectors, showing how early cost alerts and proactive strategy moves by managers can build operational resilience.
The owner’s oversight, dismissing warnings until bills arrived, exemplifies confirmation bias, where client complaints override data. For managers, documenting rationale via email or memos creates accountability trails, shielding against reversals.
When overridden, compliant execution with gentle reminders, like quoting prior discussions, fosters learning without confrontation.
Owners benefit from delegated authority on bids, coupled with quarterly reviews tying discounts to metrics: require approvals only if below 15% margin, per Deloitte’s governance frameworks.
To rebuild, revise contracts emphasizing fixed pricing amid volatility, notifying clients of adjustments. Train sales on value articulation, highlighting superior standards and faster turnarounds, to deter tire-kickers.
This incident transformed skepticism into deference; sustained listening ensures viability. Ultimately, equitable pricing sustains operations, rewarding expertise over expediency.
Wealthy clients, capable of full rates, respect firms that uphold them; discounts breed entitlement, not loyalty.
Check out how the community responded:
These Redditors share tales of billionaire clients or key accounts getting kid-glove treatment, losing money to “keep” them despite no real flight risk
This user notes their boss inflates quotes for wealthy contacts, turning “deals” into easy sells without pushback
Commenters suggest getting boss directives in writing and spot a fun spelling swap of “bass” for “boss”
This Redditor marvels that the boss actually learned, boosting company longevity odds
Users recount new bosses ignoring veteran advice, wasting resources on doomed ideas
Redditors advise preemptive client calls on price hikes and warn of ongoing 8–13% supply jumps.
Boss’s bargain blunder boils down to a pricey pedagogy: discount a diva, devour your dough. Community swaps similar sagas of spineless concessions, but cheers the wake-up win. Was the manager’s mic-drop reminder genius or just desserts?
If a VIP griped at your gates, would you hold the line or halve the fee? Dish your deal-gone-wrong dramas below, we’re popping corn!
