That depends on several factors, its an awakward situation because if you say no you risk losing the business, if you offer too little you also risk losing his purchase.

Vice versa if you offer too much you will lose out on potential profits.
With so many risks i think i'd be cheeky and ask how much discount he is looking for. Set yourself a limit, sometimes people will push and push until its barely worth doing the deal for yourself.

No-one can really tell you what to do here, it depends on a lot of thinks and i hope my opinion helps you a little

Thanks,
-Michael

You leave too much unanswered here - is it a physical product? What is your margin at $100/per? What about returns? How much of a discount? What is your sales volume now? Is 1000 items at one whack a big deal, or just a couple of days' worth of sales?

Is it a physical product? That really answers your question.

Give them a 10% discount and mention if they become a consistent customer you will consider a higher percentage. My 2 cents.

Just do your math. I always give volume discounts. But never free... it takes a lot more sales to make up for one free product given away than you might think.

Yeah, give a 2 step discount. Of course if they are looking at 1000 products then I would offer them a % of your margin. So say the proiduct costs you $50 to make or whatever then I would offer it for $80 and then once they get over a certain amount then go down to $75 or something like that.

It does somewhat depend on the products ongoing sales/subscriptions etc as this would affect my decission.