Would you offer a discount?

[Lawn-Scapes]

I got back from a meeting with one of my clients attempting to get an "agreement" signed..

They may be interested in full service which includes: weekly lawn maintenance, landscape maintenance, fertilizing, mulching, 2 aerations, and an overseeding.

Thier total for the year will be $4830.00

There also may be the possibility for extra work such as some landscaping...

This account is in a rather nice neighborhood in which I have only 2 other accounts..

I'm hoping they will play a role in acquiring new clients..

Would a discount help? How much.. 5%? 10%? None?

What has your experience been?

[KirbysLawn]

Would all depend on how much of the $4830 is expense and how much is profit.

[HBFOXJr]

Depends what's the hold up in making the decision. If it is not price then discount won't help. If they are procrastinating, money won't help. Just working on them for a decision. This business of discounting all the time just leads to bad trends. A discount should be something special for a reason, not an everyday occurrance.

Discount 5% for pre-pay for the year.

[ladibugg]

I agree. Discounts do not motivate. If you want to motivate it has to be something people can touch, not a number on a peice of paper. Offer a special planting somewhere on the property if they sign now or offer a big office plant as a bribe. Take them out for a liquid lunch and keep your pen handy. If you have profit in the bid price use it to motivate. You said it could lead to more jobs in that area, make your profit on them. If there is not profit in the bid retract it and rethink it.

[LAWNS AND MOWER]

TSG-- How bad do you want this account? You could just raise the price to $5,100 and then give them a 5% discount. I'm with ladibugg and HBFOX on this one. If you give them a $$$ discount then they will come to expect one each year. I prefer to give freebies such as a free mowing or free fert. app if the customer prepays a large chunk of $$$$ or if they refer me to new customers.

LAWNS AND MOWER

[kutnkru]

You might want to consider something like offering them a yard of mulch if they will be buying more than 5 for their site.

Even before the "added" labor costs, most associate the higher tag of $40(+) with the product.

And for a product that many buy for approximately $9-13/yd it can often be viewed as giving something tangible back to the clients.

Just my .02

[Lawn-Scapes]

I think I will throw the discount idea out the window... I've been more than generous with my services/prices to many in the past.. it's time to take care of me

Kris.. you lost me with the mulch. I couldn't tell whether you were saying to discount only the cost of mulch or both mulch & labor. I wish my costs were $9-13. I'm in the $18-20 range here. I charge $55-60 installed.

Thanks again

[Atlantic Lawn]

No discount on this one,his payoff will be the best lookin' yard in the area !

[Todd Cannon]

We offer a 5% discount for prepayment of entire contract. We never discount services because of potential clients. Each account must stand on its own merit.

[kutnkru]

Tom

I meant the entire sha-bang!!! Give them ONE FREE YARD installed. Then the remaining 40 will be adjusted somewhere into your bid down the line Im sure -LOL!!!

I dont like to come across as dishonest, just creative salesmanship is all. If its an account that you really want its items like mulch or fert (depending on lot size) that can be "freebies" and used as sentiments of gratitude for the clients.

Should we have to give anything away for our services ABSOLUTELY NOT!!! But there is nothing wrong with creative sales tactics that make us look like we are. Its no differenbt than car dealerships and whether you buy foreign or domestic, you still get NOTHING for FREE - regardless of the promotions.

Hope this clarifies some.

[David Haggerty]

It reinforces something my wife's been trying to tell me for years.
"Money is not a motivator"
This makes it clearer in terms I can understand.

Dave

[G & S LANDSCAPING SERVICE]

I agree with the gang on this one, I might give them one free cut , in return I would ask if i could place my sign in ther yard.

[naturescape]

I offer a 10% discount if they pay in advance for the year. That money up front helps to buy new equipment and gives you a safety cushion for repairs, etc. And you don't have to keep billing the customer. You are not losing anything by offering a discount if it is invested properly.

[LAWNS AND MOWER]

Prepays come in handy in March when your cashflow has been reduced to a trickle.

LAWNS AND MOWER