View Full Version : does any one discount?
Frontier-Lawn
09-11-2005, 11:22 PM
i have a min price of $25 for small yards. i did one est today for a guy that called me sat. i gave him the price of $25wk, he asked if he got me 5 others next door if i could do them for $20 each? does anyone here do this?
hole in one lco
09-11-2005, 11:27 PM
id do his for 20.0 but everybody els for the 25.0 . He who brings the business get the discount. I offer a ten percent discount for referrals
CrewCutEnterprises
09-12-2005, 12:00 AM
We tried this same approach, Went into a neighborhood that had similar sized lots and bid all properties, large and small 27.00 Mow trim edge blow, so we should average about 3 lawns an hour. Well it works nice, we average about 2.5 an hour so we dont make $35.00 hr like we try to. But there is no drive time, we are there for 4 hours and we do 12 to 14 properties. but even on a good...
8 working hr day. 3 an hour. 24 lawns at 27 dollars = $648.00 would be nice for a 2 man crew
it really works out to
8 hr, 2.5 hr = 20 lawns or $540.00 a day. Still not terrible for a 2 man crew.
So If you are mowing all 5 at 20.00 and it takes your 2 man crew 1.25 hours to do them all. thats still what. $40.00 hr for 5 lawns. It depends on trimming edging blowing and your crew. Its your decision
QualityLawnCare4u
09-12-2005, 07:48 AM
No, I would not discount any of them. I might would have last year but not with todays gas prices and all other increased cost we have incurred recently. I used to try things like this and offer "incentives" to get new clients and it bit me in the arse just about every time.
topsites
09-12-2005, 10:57 AM
No, I would not discount any of them. I might would have last year but not with todays gas prices and all other increased cost we have incurred recently. I used to try things like this and offer "incentives" to get new clients and it bit me in the arse just about every time.
First off, I would say if you have to ask, then the answer is no. Reason I say this is it should come to you naturally, I don't mean this in a bad way but as to say having doubts is not good for business, it is like a type of omen.
I agree for the most part the above is also true. I did it once and what a friend told me holds true: One or the other will leave and you're stuck with the other(s) AT the discount rate, and it is true ESPECIALLY with 2 yards I had that and then one left and finally after the year was OVER I was able to restore the other's price. But this was THEM swinging the deal, I'll get back to this in a minute.
I have ONE situation where 2 elderly ladies have 2 yards next to each other and I treat them as 1 lot but I get ONE check per visit: One pays me once, the other the next time and it is understood I do them both at the same time.
That one was my idea and not theirs because as a rule I don't look too kindly upon customers trying to swing deals for me, that's just another version of them taking hold of the rudder and I don't care for it when ppls attempt to drive my boat.
work_it
09-12-2005, 11:13 AM
I totally agree with topsites. On the other hand, I did make a deal like that a month ago with 3 properties, but I added my own stipulation. I told them that if one person stops service, or asks me to skip a week, the others will be billed at my regular rates. I don't expect for this to work out well in the end, but if it does...that's cool.
HOOLIE
09-12-2005, 12:35 PM
I wouldn't give a $5 discount per lawn...that's 20% off the original price, a little too generous. You should BENEFIT, dollar-wise, from having multiple lawns at a stop. At 20% you're most likely getting the short-end of it. I find 5% is a fair percentage.
BSDeality
09-12-2005, 02:27 PM
i like to know ahead of time if they're plannin on doing this sort of tactic, this way you can build it into the price. I have a "cluster" package I offer for 3 or more neighbors who sign up together (new only), 5% or $5 off each week. Of course you know this ahead of time and charge them $33 instead of $30 and then with the discount you're down to $28, so they think they're making out on the deal.
Frontier-Lawn
09-12-2005, 03:11 PM
well i mowed 2 reg Clients, today, and just picked up 4 more (these don't know the dis count guy) on the same street. I got these for $25 each and for $5 more, I'm doing the community grass (15'x75') that now the home owner has to cut up to a lake. And it takes me no more than 10-15min per lawn.
daveintoledo
09-12-2005, 09:46 PM
form me, i say, one neighbor signs up for the year (offer only available in the spring or early summer), you get one free cut.....
bobbygedd
09-12-2005, 10:06 PM
sure, i'll meet you halfway, $22.50, ONLY IF, you all sign up for a fert program. then, just hump them on the program. you are going down $2.50 per property x 30 cuts= $75. you sell them a program at $40 an app, and use invisible fert on two of the apps. this brings you +$5
daveintoledo
09-12-2005, 10:16 PM
but getting it this winter.... ok bobby, what is invisable fert?????? its not being dishonest right...that i WILL NOT DO.... and i dont think you would either, i think your alot smarter then most here give you credit for...
topsites
09-14-2005, 05:44 AM
but getting it this winter.... ok bobby, what is invisable fert?????? its not being dishonest right...that i WILL NOT DO.... and i dont think you would either, i think your alot smarter then most here give you credit for...
Just to back you up, you are 100 percent right by not being dishonest, for doing so can and will come back on you in a very bad way (i.e.: the customers will start being dishonest as well).
Far as the other part, I'd like to know that as well but you asked first :)
Gr grass n Hi tides
09-14-2005, 06:36 AM
i have a min price of $25 for small yards. i did one est today for a guy that called me sat. i gave him the price of $25wk, he asked if he got me 5 others next door if i could do them for $20 each? does anyone here do this?
No.
I never bid against myself. Ever. People either want the service or they don't. Anyone looking for a discout before you've ever worked one minute for them is not the kind of client I want.
sheshovel
09-14-2005, 12:31 PM
Agreed NO would be my answer.
TripleT'sLawnCare
09-15-2005, 01:59 PM
I can tell ya'll what I do. I have be offering everyone of my customers a mouth for free if they are able to get me another yard in there neighborhood. I have done this since I started. I have one lady who only owes me every other month. Word of mouth is the best way to get accounts. I do have some clauses.
1. The new account as to be comparable to the customers account in price. I am not going to give someone who pays 200.00 a month for services a free month when they get me a 100.00 account. I might give them 100.00 off the next month.
2. They original customer has to pay for the first 3 months of service, if they get me accounts right off the bat they do get credited later. This just insures they can and are willing to pay me for services.
A lot of you guys I know don't like doing deals like this, but it has worked well for me so far. payup
topsites
09-17-2005, 08:39 PM
No.
I never bid against myself. Ever. People either want the service or they don't. Anyone looking for a discout before you've ever worked one minute for them is not the kind of client I want.
Hey I LIKE that attitude, it makes a LOT of sense and explains why I don't like them influencing the price (meaning they don't SAY it outright but in not so many words they throw hint after hint that they don't want to pay a lot).
No wonder that stuff makes my mind reel when they do that crap, I'm bidding against myself.
So, you are right: You want a discount right off the bat?
Time to go.
prizeprop
09-17-2005, 10:56 PM
How long will it take you to cut the six lawns? Do you currently have a full route(40+ hours a week)? Since your profile says 1/2 year in business, You probably have a short week,I'd jump all over it! You can't make $120 sitting at home. Even if it takes you 2 hours, thats $60 an hour.
prizeprop
09-17-2005, 11:11 PM
No.
I never bid against myself. Ever. People either want the service or they don't. Anyone looking for a discout before you've ever worked one minute for them is not the kind of client I want.Yes, but this guy is doing business with you and offering something to you as well.Anyone of us if we were looking for a service and had a package deal to offer would do the same thing. were not pita's, were smart.If he said $25 is to high, i'll only pay $20 and didn't offer you this group, I'd agree to also walk away.
twj721
09-18-2005, 12:10 AM
The only discount that I give is to the church I give them a $5.00 per hr discount and it has worked out great have 3 that I do and they are on a 2 week cutting schedule . everybody else pays my normal rate . except my mom and I do it for a pineapple upside down cake
Roger
09-18-2005, 05:51 AM
I never have offered a discount plan with multiple properties, and nobody has ever asked for one. I don't use an annual contract, so I can leave the customer any time I wish (never happened), or the customer can leave any time they wish (only happened twice in eight years).
My best sales persons are satisfied customers. I have had several new customers as a result of neighbors encouraging others to ask me to do their work. Last Thursday, a woman asked for an extra business card to give to a new owner that is moving next door in a couple of weeks. She said she wants to be sure I get the mowing work for this new owner. Good! Thank you very much. But, she has never asked for a referral fee, or a discount. Maybe my prices are too low ....?
Gr grass n Hi tides
09-18-2005, 07:10 AM
Yes, but this guy is doing business with you and offering something to you as well.Anyone of us if we were looking for a service and had a package deal to offer would do the same thing. were not pita's, were smart.If he said $25 is to high, i'll only pay $20 and didn't offer you this group, I'd agree to also walk away.
I've learned not to discount, and also at the outset when I hear the words "I can offer something to you" or "I can hook you up" - to find a polite way not to do business with that person. That's just me though. There are many ways to approach things & different methods work for different people. In my mind, if a business relationship grows into a situation where you're getting referrals because they appreciate the work you do - that's great. that's the goal. You're in position of not having to discount your own work. You created value. It all comes back around to the type of work we want to do. Somebody that wants me to "discount" before I've ever set one foot on their property though........again, no thanks. Their goals & my goals don't match.
topsites
09-21-2005, 01:31 AM
I've learned not to discount, and also at the outset when I hear the words "I can offer something to you" or "I can hook you up" - to find a polite way not to do business with that person. Somebody that wants me to "discount" before I've ever set one foot on their property though........again, no thanks. Their goals & my goals don't match.
You got it, I'm just learning the true benefits of this lesson, you really need to LISTEN for those keyphrases ALL of which translated mean: I don't intend on paying a lot.
Schitt like this:
- When they ask you to come over to estimate something and then you get there and they start talking about a LOT of other (of course expensive) work (which is actually designed to make YOU fall for the temptation of GREED which in turn clouds your judgement so YOU will find yourself WANTING to give them a better price in HOPES that you get to do ALL the work huhuhu) I hate this one a lot, do NOT pull the money-flaunter on me.
By the way, if you DO quote them a good price to GET the job, you WILL get the job and you will work your azz off and rest assured they will NOT hesitate to call a PRO and pay the PRO mega-bucks for ALL that expensive work they made you believe YOU would get to do... sorry to be harsh guys, it's a dog eat dog world...
- Again like what you said, WE own the business and it is NOT their job to be pulling together deals for us! What they are doing is they are test-driving your boat, I do not know why ppls like to do this but I do know ppls LOVE to test-drive someone ELSE's business at OUR expense.
- Is cash better than check? (is a foot in your mouth better than one in your azz?)
- Can you go any lower? (NEVER bid against yourself)
- I got someone else coming to give me an estimate (another version of bidding against yourself). Well, that someone ain't there now is He?
- We had a guy for x-years did it for y-amount (x is always an impressive number, y is always LOW).
- My FRIEND said blablabla - bs. My attitude: If THEIR friend is so smart, why am I here? b-bye!
The list goes on and it is a fairly lengthy repertoire they got but there IS good news: They ALWAYS try the SAME things and the NUMBER of things is LIMITED! Learn them over time as you get skru'd remember how they 'got' you because it WILL come around again and again, it repeats itself like a show and soon you can SEE the schitt coming from miles away. More good news is that MOST can't stop themselves with just ONE of these lines, they think we are STUPID so they keep throwing HINT after HINT almost to the point where you got to be virtually BLIND not to see it coming but unfortunately it does take TIME to learn, took me 2-3 years so don't feel bad even in my 4th year somedays they still get me even thou I SHOULD've seen it.
...
Back to the money-flaunter when they pull that one I get going good because NOW I think they need to put their money where their MOUTH is (and when I quote them the price their face about looks like they're going to have a heart-attack and I hate to say it but I REALLY like doing that anymore).
Soupy
09-21-2005, 02:05 AM
This type of offer needs to be addressed case by case. If they are small and you can knock then out fast then go for it. It might just benefit you more then if you past it up and only did the one lawn.
I have a $30 minimum and this year a lady asked me to cut her townhouse which is only a couple thousand sq.ft. Since I already cut a few larger lots a couple streets away I gave her a break and quoted $25 (she didn't ask, but this lawn is small). Anyway I soon started getting neighbors signing on left and right. I now cut two townhouses (2 sides each) and two other townhouses (one side each) and it's my most profitable stop. I am there about an hour and i'm bringing in $125 (I ended up dropping a couple to $20, to gain them). I'm thinking about flyering the whole area for $20 a pop. Oh I forgot to mention that this price doesn't get you invoiced, you must pay weekly (still gets claimed, but no office work to add to the cost).
So if this guy guarantees you 5 others right next door then I say jump on it, as long as your not already under bidding. Some people on this forum just can't see for enough past their pride/ego to make wise business decisions.
LB1234
09-21-2005, 09:31 AM
We offer discounts to lawn customers who sign up for the seasons lawn care. Our discounts are on leaf cleanup and mulch. They save $10/yd installed on mulch and $5/hr on leaf cleanup (assuming they are under the per hour deal for leaf cleanup).
It intices some people to stick with us year after year. Generally, our residential mulch jobs are between 7-8 yds. So they save 70-80 bucks. They like it and we get the account.
Gr grass n Hi tides
09-21-2005, 06:03 PM
This type of offer needs to be addressed case by case. If they are small and you can knock then out fast then go for it. It might just benefit you more then if you past it up and only did the one lawn.
I have a $30 minimum and this year a lady asked me to cut her townhouse which is only a couple thousand sq.ft. Since I already cut a few larger lots a couple streets away I gave her a break and quoted $25 (she didn't ask, but this lawn is small). Anyway I soon started getting neighbors signing on left and right. I now cut two townhouses (2 sides each) and two other townhouses (one side each) and it's my most profitable stop. I am there about an hour and i'm bringing in $125 (I ended up dropping a couple to $20, to gain them). I'm thinking about flyering the whole area for $20 a pop. Oh I forgot to mention that this price doesn't get you invoiced, you must pay weekly (still gets claimed, but no office work to add to the cost).
So if this guy guarantees you 5 others right next door then I say jump on it, as long as your not already under bidding. Some people on this forum just can't see for enough past their pride/ego to make wise business decisions.
Lol. And you can cut all the $20 lawns you like.
If you intended to put me in the group you're talkin' about.....I can tell you most definitely that ego has zero to do with it. If cutting $20 lawns is good for your set up then go for it. I know my niche and you know yours. Like I said at least twice in this thread, different things work for different people. I repeat- different things work for different people. I don't see how you or anyone else can possibly be confused on this point.
A quick example 180 degrees from what you're talking about. I've got a client that gives me an open check book. On top of that I do installs for him, fert, and other extras. I see something that needs done I do it & bill him. That's what he wants. We have great rapport & have built trust. I know what he wants done on his property.
One day while I'm working his neighbor asks me if I can mow for him too. This neighbor said the guy two doors down is also interested. He started to mention "the last couple lawn guys they had", too. Anyway, I talked to him a little while and before I could even think about working one minute for those guys, the one that initiated started talking about "will you drop prices for all three of us?" Lol. He claimed to be speaking for my client as well as himself and this 3rd guy.
I told him thanks but no thanks. Politely. Told him my route was full. I also mentioned the encounter to my client and he laughed. Said he never once talked to them about a "group rate" and could care less...."I love the work you do, keep it up, the place looks fantastic."
Well........those two guys are on their 2nd lawn service for the year now.....that I'm aware of. Had at least two others before this year by his account too, lol. I'll see them out there doing it themselves every now and then as well. I don't know if that's when they're inbetween LCOs or maybe when they "put them on call" to try and save a couple bucks. I also don't know what they pay & I don't care. Neither does my client. Even if it came to the point of my own client wanting to get in bed with his neighbors on lawn care & hire one of the many LCOs that come & go for for them vs. keeping me at my rates/service.........that would be fine. I would part ways with him if it came to that because his goals & mine would no longer match up.
So instead of working cheap for those two, I get in the truck when I finish with my client & drive 5 min. down the road to an equally profittable maintenance job. If I took them on I'd have been decreasing the value of my own service. Different strokes for different folks. There's an LCO for every client & a client for every LCO.
Hope this clears up any confusion.
Soupy
09-21-2005, 10:03 PM
I wasn't putting anyone in a category. What I meant was everyone is saying no way, when they don't know the particular situation. I used to think the same way. But like with my example of the townhouses, I cut both sides for $40-$45, but only get $30-$35 for the same size lawn on a regular house. It didn't take me long to figure this out. I knew right away that if I told each side $30 ($60 for the whole lawn) I wouldn't get very far. My average cut price is $40, I cut all other customers at $30-$90 a cut (residential). These $20-$25 clusters are my most profitable stop hour wise.
Gr grass n Hi tides
09-22-2005, 04:19 PM
After re-reading this stuff, I think we're comparing apples & oranges. In the example I gave, the two neighbors' yards are worth every bit as much as the one fella I do take care of. Similar in size & also in needs. I'm talking just straight up maintenance (even though my guy gets all the extras). So for me, the way I look at it, I will not drop rates within the market on like-jobs just because somebody wants me to bulk discount. Like I said I'll just move on down the road to another like-job who will pay appropriately for service on that type of property. For me, the 5 min. drive to get there far outweighs the bulk rate props. in close proximity (next door neighbors = zero drive time). That's what this boils down to - pricing our time. Also there's the headache factor........exactly like the guy I was telling you about. i don't want a business relationship with him.
It sounds like these postage stamp yards are smaller than your average ones there? Yes? If so, then yeah it makes sense the rates ought to be different & it's not as though you're bulk discounting your average sized yard there. It's the same way here & most everywhere else I'd imagine. Different size & different needs type properties. Still......at $20 a pop I doubt you'll have to advertise (flyer) b/c you'll have everyone in the neighborhood referring you to other people based on price alone. I'm not raggin'.......I'm just saying that's awfully low. The number of referrals you're getting in a real short time frame is evidence of that. Again, whatever works go for it. It all comes back around to the type of client/provider match up we want. For me, the clients I have refer more of the same type clients my way. That's what I want. That's the way it works.
When you get into the bargain game though I'm wondering what happens long term. I mean that, genuinely. Volume is one way to go. It's a thought. Indication is that what primarily drives these type clients is price above other considerations, and if that's so, what stops them from going with a guy that shows up bulk rating for $17.00 per job? it's not a question that needs an answer. Just a hypothetical.
Soupy
09-22-2005, 09:31 PM
When you get into the bargain game though I'm wondering what happens long term. I mean that, genuinely. Volume is one way to go. It's a thought. Indication is that what primarily drives these type clients is price above other considerations, and if that's so, what stops them from going with a guy that shows up bulk rating for $17.00 per job? it's not a question that needs an answer. Just a hypothetical.
I agree completely. I'm starting to realize that my scenario is different then what the thread starter stated. None of my smaller properties actually asked me to lower my price. Price never seemed to be an issue with them. I lowered the price because I knew my minimum was way to high for these small properties. I didn't get all these properties at once either. I got half last year and the other half from my yard signs that were displayed in the last season customers lawn. I am thinking about hitting the neighborhood with $20 flyers. Almost all of these properties are mowed by owner, probably because most have a minimum that is just to high for these 10 minute jobs.
I won't mess with price shoppers either, and I don't know why I ignored the fact this thread was about price shoppers. I mentally blocked that out and focused on the issue of lowering price for quantity.
These townhouses have made me a believer though, that sometimes a low price (small lawn) can be very profitable. Some of these customers are on weed/fert program, and get 2 hedge trimming a year. One lady just got her second hedge trimming at $180 for 1.5 man hours. So the profit is there for sure.
OK, back on topic.
Gr grass n Hi tides
09-24-2005, 09:49 AM
Yep, bigger properties doesn't necessarily mean better. In fact, too many eggs in one basket is a real bad idea. My smaller properties are just as worthwhile as the larger ones, too. Sure, they don't fetch as big a fee but I also spend far less time on them. Naturally. I don't have a big bunch of the small properties all grouped up though. Mine happen along the route, so it's still good for me. I don't have to drive out of my way to get to a small job (even though the rate for work itself might be good a 30 min. round trip windshield time would kill that). But yeah, definitely, I wouldn't turn down a bunch of properties lined up all the way around the block just because they're small.
M RASCOE&SONS
10-21-2005, 09:36 PM
"discount" No Way- Notta - We Work Way Too Hard These Days Boys,no Discounts!
work_it
10-22-2005, 12:06 AM
It's good to read so many different opionions on this subject, and some very good points brought up by so many of you.
As for my little package deal, it's working out well. I charge $30 for each of them, and they only take me 75 minutes. When it comes down to it it's all a numbers game.
On the other hand I ended up dropping my largest residential customer earlier this season. Originally I was cutting 3 acres for $200/wk, but they would pay me to clear out some of their land each month. After 2 years I had cleared 2 acres, but then they expected me to cut all 5 acres for the original price. When I gave them their new price of $300/wk they tried to tell me that so-and-so next door only pays $x/wk for his 5 acres. I said fine, then hire his lawn crew to do yours too, and walked away. By dropping them I was able to take on a lot of smaller jobs, free up some extra time, and make a heck of a lot more $$$ over the course of a season.
When it comes right down to it you need to decide what is going to make you the most money. After all, it is your business and your success/failure is solely on your shoulders.
PurpHaze
10-22-2005, 10:57 AM
Real kickin' avatar!!!
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