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View Full Version : Lower prices for multiple houses on same street


stevenf
03-26-2008, 12:12 AM
The other day I picked up another bi-weekly account that is 8 miles away for $45.00(10 minute job)
The reason I took this one is because I have two more in the same area. Well, the two accounts ended up being on a different schedual than the new one so I am going to have to pick up some more accounts around that area.
Question: When you want more houses on the same street, do you guys advertise or quote them a cheaper price, or do you get them at regular price and lower your current customers price and do this for each new customer?

CreativeEdge
03-26-2008, 12:23 AM
You can always explain to your customer that you are already doing work in the neighborhood and can offer a discount. The only problem w/ that is the neighbors might talk and one guy might have a great price and the other guy may feel hes getting screwed...so make sure your prices dont differ more than 5 bucks or so

stevenf
03-26-2008, 12:34 AM
Thats why I was thinking of lowering the current customers price. So there is an explanation that they have been a customer longer and to try and get them interested in refferals.

apolooza
03-26-2008, 02:59 AM
I have never lowered my price for a current customer. The job is already sold, so don't lower your profit - remember your costs will remain the same, so if you lower your price you have just lowered your profit by that amount. I have a minimum price that I charge to cut any lawn. I tell the prospective customer up front that x is my minimum, I say it with confidence and I stick to it. Initially I may not sell as many jobs, but in the long run the jobs I have acquired are more profitable.

Also, you mentioned that the jobs that are close together are on different schedules. I obviously don't know your routing, but my advise is to group jobs together. For me, efficient routing is key in this business. Your travel time and gas is expensive. I have a service area that I stick with - if a prospect is in that area I will consider it, if not I move on. Even the travel time and expense of bidding can be a drain. I understand when you are starting out you need every job you can get, but as you grow keep this in mind.

Paulup
03-26-2008, 03:02 AM
Depending on the customer you already have, you might mention in passing that if you could get a couple more jobs in the area you could afford to work at a lower price. I know if by signing up my 2 neighbors for lawn care i could get a discount, I would at least mention it to them. The only down side is that if he thinks you could do it cheaper, he might try to find someone else already working his neighborhood.

cpel2004
03-26-2008, 04:17 AM
Dont give same street, same neighborhood, a relative discount. They hired you because you do good work. Do not do this. Hell get out of the mindset of giving discounts, charge them more if you can.

Sunstate Lawn
03-26-2008, 07:08 AM
One of Sean Adams recent reports talked about this. Something about signing up 23 people and giving a discount for it.

Budget
03-26-2008, 11:31 AM
Maybe if you had like 10 on the same street close together, but not much of a discount. What if 3 of them drop you? Now you are stuck with one on that block that you gave a discount to. I never gave a discount to any of my customers, but i never rounded up more then 3 on one block. Sometimes when i show up to cut properties there are two other Co. mowing right next to me. Competition seem's to be stiff around here.

TheLawnWarrior
03-26-2008, 01:06 PM
I don't see how they are on different schedules. If the one is every week and the other two are bi-weekly, why do you not offer some insentive to make the other two weekly accounts.

Elden
03-26-2008, 01:35 PM
I think that he's sayin they are all bi-weekly. I've had this problem I just talked to the customer and worked it out to get them on the same week. Either do them a week early or a week late. Most will go for the week late. Don't charge extra as it will leave a bad taste and offer to come by the normal scheduled time to do a little trimming in the front so it still looks nice. In the long run it will be worth your time to change, even it you have to make one more trip for free. Good luck

Weekes
03-26-2008, 01:45 PM
I never gave a discount to any of my customers, but i never rounded up more then 3 on one block.

Here is the tell all. Never give a discount never get more than three on the same street.

I give a discount and I work neighborhoods mostly. Can someone please explain how it is profitable to move your truck more than a mile to a new neighborhood as opposed to offering a $1-$5 discount in hopes of getting the whole street. Even if I have to load my truck to roll over to the next street. I will save more time and money, than someone else who rolls up does a lawn then moves over to the next neighborhood or even another part of town.

stevenf
03-26-2008, 01:59 PM
I don't see how they are on different schedules. If the one is every week and the other two are bi-weekly, why do you not offer some insentive to make the other two weekly accounts.


Because the other two are these two old ladies that I have had for two years now and can no longer afford weekly so they want every 10 days.