When asked for a price cut, instead try to offer the customer an alternative lower price in exchange for him picking up his order (price drop for freight cost cut). Offer a slight price cut if he does not require any packaging (price drop for material cost cut). Instead of giving up on price, ask for a larger order which will for you as the manufacturer cut down on freight costs (i.e. one load versus three over the quarter, larger material orders may yield price cuts from the vendor). In exchange for dropping the customer’s price, convince him to accept a cheaper grade of material, cheaper finish or less expensive packaging. When you are asked for price cuts, counteroffer to the customer optional changes in cost structure (you give on price and the customer gives a little on the product so both are happy).