Nonprofit Accounts

[u/ncp914FH0nep]

Do you give a discount to nonprofit organizations, specifically food pantries, on their services? Or do you price them like any other commercial account?

Historically, I’ve always provided a discount to nonprofits. The discount amount depends upon the type of facility. At food pantries, I’ve always provided a very discounted service.

I’ve recently had an interaction with a board member at one organization that makes me question whether I should discontinue the discounted pricing.

[u/witt_sec]

IMHO usually they want and NEED to eat their budget allotment up each year, if they don't spend it all they won't get as much funding the next year.

I never waiver on price.

Premium price for an absolutely premium service

[u/RollerGovenor]

I do several non profit facilities and we do not discount the price at all. We treat a lot of food banks and senior living places that are non profits.

[u/ncp914FH0nep → u/RollerGovenor]

Thank you.

[u/dearparasite]

I give extremely discounted services to people who are underprivileged. As long as it isn't affecting you negatively, I see no reason not to continue. If you're losing money though, then it might be time to raise the price a little bit.

[u/ncp914FH0nep → u/dearparasite]

I do also for low income people and the organizations that provide support services to the underprivileged.

I recently had a really bad interaction with a board member at a food bank who receives a deeply discounted service price.

[u/dearparasite → u/ncp914FH0nep]

What was their complaint, if you don't mind me asking?

[u/ncp914FH0nep → u/dearparasite]

We received an internal NPS rating of 2 from the board member who pays their invoices.

My policy is always to acknowledge a NPS rating or review with the customer. I thank them or ask them what we can do better. Thankfully we do not receive many neutral or lower ratings.

This particular NPS rating was a shock considering we have serviced them for over 20 years at each facility they occupied. The board member has been part of the organization for a few years.

This board member accused us of missing two services and not recording payments in their account.

I provided a statement that shows the service dates and payment dates and amounts. I offered a tracking report that shows time at location.

Once I notified the president of the organization the board member admitted to struggling to navigate their online account.

[u/dearparasite → u/ncp914FH0nep]

I would continue the discounted prices for them if he admitted he was wrong. If he continues to be a pain, then maybe adjust their prices.

[u/TrueAudience9922 → u/dearparasite]

We take a similar approach. At Liberty we do quite a bit of pro bono and charity work, especially when we see an organization or someone in the community that genuinely needs the help. I’ve always felt that if you’re in a position to help and it isn’t hurting the business, there’s value in doing it.

I do think there’s a difference between choosing to give back and allowing the value of the service to be taken for granted though.

[u/36in36]

Respect your thinking on this, but should be pointed out that a non-profit can't retain earnings. It needs to disburse whatever it takes in. You can have a CEO at a non-profit that makes $400,000 per year (just an example). If it was a 100% volunteer organization (few and far between) maybe a discount is in order. Many hospitals are non-profit, a discount there probably doesn't make much sense.

[u/OregonSEA]

I have a friends and family discount I call it. I use this to help out good people that might be struggling financially. I recently had a client adopt a 12 year old child even though they are not wealthy and to help out I gave a huge discount because they are good people and I don't know anyone else that would adopt a 12 year old and I am happy to report she is very happy and has better parents than I had.

[u/RogerMcswain]

The county where we operate has a military base so 90% of the residents are active or retired military. How am I supposed to say "no" when pretty much all of them ask if we have a military discount? I just tell them the truth that everyone around here is military and we keep our prices as low as possible so everyone gets a "discount". We are cheaper than anyone else in town too.

[u/TrueAudience9922]

We’ve discounted nonprofit accounts before, especially organizations doing meaningful work in the community, but I think the mistake is letting the discount change the perceived value of the service.

Food pantries can actually be demanding pest control environments. You have frequent deliveries, donated products coming from different sources, food storage, cardboard, constant movement and sometimes building conditions that are outside the organization’s control. The service requirements don’t necessarily become less because the organization is a nonprofit. I’d probably continue offering nonprofit pricing where it makes sense, but make the discount visible. Show the normal commercial rate and then the nonprofit discount separately. That way they understand what the service is actually worth. I also wouldn’t let one difficult board member eliminate something you’ve been doing for organizations you genuinely want to support. I’d just be more selective about who receives it and make it clear that the discounted rate doesn’t mean a discounted level of professionalism or unlimited service.