A client asked for 10% off my quote; how do I work out the new total and show it?
On a 4,500 quote the discount is 450 and the new total is 4,050. Do not change the line prices themselves: keep the original total and show the discount as its own line beneath it, so the client sees what they gained and the value of your work stays visible.
Work out the new total
- Open the Discount calculator and type the quote total, 4,500 in our example.
- Type 10 as the discount.
- The final price is 4,050 and the saving is 450. Those are the two figures your reply needs.
If your quote includes tax, take the discount from the amount before tax and apply tax to the discounted amount. That is also how our quotation generator does it.
Present it in a way that protects your rate
Quietly cut every line and the client concludes your original prices were padded. Keep each line at its price with the discount as a separate line and the message is: this is what the work costs, and this is a concession to you. In the Quotation generator, choose 'Percentage' as the discount type and enter 10, and the quote shows the subtotal, then the discount, then the total.
When the client comes back for another 5%
It happens a lot. Note that an extra 5% on the already discounted amount is not the same as raising the discount to 15%. Enter both discounts in the calculator to see the gap:
10% then 5%: price 3,847.5, a saving of 652.5, equivalent discount 14.5%.
15% in one go: price 3,825, a saving of 675.
The gap is 22.5, small, but you should know exactly what you are agreeing to. Because the quotation takes a single discount, enter the equivalent 14.5% or a fixed amount of 652.5, not two separate discounts.
Before you agree to any discount
- Know the lowest fee you will accept before the negotiation, not during it.
- If you pay a subcontractor for part of the job, check the discounted total still leaves you a profit in the Profit margin calculator.
- Instead of a discount you can sometimes trim the scope: one fewer round of revisions, or a later delivery, at the same price.
- Tie the discount to a condition where you can, such as upfront payment or sign-off by a date, and write the condition in the quote notes.
Common questions
Should I send a new quote or edit the old one?
Sending a new quote with a new number or date, discount shown, is clearer, so nothing gets mixed up if either of you goes back through the emails later.
The client wants the discount on one line only. How do I work it out?
Enter that line's price alone in the discount calculator, then take the saving off the total, or enter the saving as a fixed-amount discount on the quotation.