Yes, but I'm sure it brings up a sex option with him. Either way there's no option for Discount for me
did you give glafire yet? that scene is only unlocked after you give him it and he starts making Glafire gear and says "you know I heard a rumor the blacksmith can be convinced to give a discount..."
you need around 10 glafire and give him 5 and it will unlock the dicount option i think