View Full Version : Who Gets The deal
02-17-2004, 11:42 PM
I know this has been discussed before but I'm looking for any new advice.The nursery I buy most my plants from gives discounts for the amount of plant material I buy throughout the year. Would you pass the savings on to be more competitive or is that money made?
02-17-2004, 11:55 PM
If it was me i would still charge regular retail price if it was just a few plants, and pocket the savings. If its a big order i would pass on some savings.
You are in a constant battle between being competitive and making money. If you are selling jobs, there is no reason to pass on savings. You earned the savings by the volume of business you generated. Your individual customers did not.
The only good reason to pass this savings on is if it is going to make you more money. That can be because you can undercut your competitors or land a client that is on a small budget. This only makes sense if there is dog eat dog competition for jobs and people are getting multiple bids to find the cheapest. I have not seen that since the late 80's early 90's.
Usually a customer's confidence in you is going to make the difference on getting the job or not, although over pricing can break deals. If you are considering passing this savings on, it tells me that over pricing is probably not a problem that you have.
02-18-2004, 07:19 AM
Set your prices and stay with them.
If you pass the savings,keep it to yourself,figure it in the bid
but don't tell the client.
Remember you have a business,consistency is the best method.
To do something extra like labor,is good once in a while, but material costs should be set.
02-18-2004, 11:09 PM
Do what (really) feels right. I think, at least for me - sometimes I do what I have to do (within reason of course). The real determination is the actual project at hand - take in ALL the issues then decide which way to go.
Above all - be flexible!
02-19-2004, 06:21 PM
I personally would not pass the savings, or at least not much of the savings. This is in my opinion is a bonus for being a pro and being able to get the discount from the supplier. But then again you need to stay competitive.
Hope this helps!
02-19-2004, 06:29 PM
I offer an option of a 25% discount on plant material with no warranty or full retail with warranty.
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