Would you give a 5% price reduction to renew a contract?

[grandview (2006)]

Originally Posted by ndr_lawn_care

I ate at one of my favorite steak houses yesterday, and the "2 for $20" special is now 2 for $22. Maybe you should have told them you are not in a cost cutting mode and said you would provide fewer services for a reduced rate. What happens at next renewal based on this?

For what they charge you for a drink,the meal should be free.

[Will P.C.]

No.

Sounds like they hired an efficiency expert who sent this generic letter out to possibly hundreds of suppliers, vendors, and service companies.

It is just a quick swoop to save as much money as possible and a common tactic. They know many places will say yes without blinking an eye. If their have been no problems and you are fair on your prices, I doubt they would spend the time and effort to look for a new company if you declined.

[slowleak1]

Originally Posted by KrayzKajun

Good one Doug.
Posted via Mobile Device

The "profesional" letter said it first...they are analizing all their clients. That right there would have made me go up on my price

[Toro 455]

I considered this might be a pfishing expedition too, if they hadn't just been bought out by some holding company. So I thought I'd better go along at least for now.


They have to be only hurting themselves with this. More of an insult to me than an injury.

Being a solo operator I can't save any money by doing 5% less work. Might save myself a little time but no money.
The only way to save money is on out-of-pocket expenses like fertilizer and herbicides. The one place you don't want to skimp.

[slowleak1]

Originally Posted by Toro 455

I considered this might be a pfishing expedition too, if they hadn't just been bought out by some holding company. So I thought I'd better go along at least for now.


They have to be only hurting themselves with this. More of an insult to me than an injury.

Being a solo operator I can't save any money by doing 5% less work. Might save myself a little time but no money.
The only way to save money is on out-of-pocket expenses like fertilizer and herbicides. The one place you don't want to skimp.

Time IS money.

[MJB]

Sure no problem, I wont be raising my price this year by 5%. There is your 5% reduction.
Otherwise I take it off my services somewhere, if they complain tell em thats what they get for less.

[Dragon Rider]

never wrong to reduce price as long as three is a reduction in service somehwere, "What part of our service do you feel you don"t need." Put the ball back in their court. Also need to consider, were you making or losing money on the job.

[Marek]

So lets say the job wasnt a big money maker. Are they giving you ANY extras ? If not then where do you make up the discount you gave them and better yet do you really think your cost are going to go down? Your insurance and taxes are going to go up a lot this year and into next. You can do work for free for anyone.

[branchoutshrub]

We wouldn't reduce the price by 5%. Other industries are raising prices weekly to keep up with their costs. If your company is doing quality work, no need to reduce price.

[weaver]

Originally Posted by Toro 455

That's what the letter in front of me says. To quote it goes like this:

""Our company has recently merged with CPG International. As a result we are undergoing a cost reduction program. As part of this program, we are examining all of our expenditures and analizing each of our strategic vendor relationships to identify opportunities for improvement.

Our relationship with you has been identified in this process and is currently under review. We request that you reduce pricing by 5% on all future transactions."


Would you go for it? I did! E-mailed them back today with an "OK I'll do it."

I figure 95% of something is a heck of a lot better than nothing!

Are you seeing request like this?

Not being nosy, but what is the final cost you'll be out for giving the 5% break? $50 $100 bucks? Just make it back up somewhere else with them...