Knock off a percentage?

[sharperimagelawns]

I am trying this for the first time this year as well. I have offered a 5% discount to all customers who pay their yearly balance up front. If its a new customer I would do what some of the rest have said, mark up the original quoted price a bit then discount it. If its a returning customer i would just discount last years price by 5% or so and still be thankful to have gotten paid up front.

[sildoc]

Originally Posted by JasonsLawnCare1

that's where you mess up. you don't tell him the original cost. all you tell him is what you will charge. $3000

he has no idea how much of a discount he is getting if any at all. if he asks how much of a discount did you give me you can just say 10% or something. how is he gonna know?

This only works if you think you have them signing now. If they are price shopping they will know the difference and it still comes down to quality and a decent incentive for them to go with you. I could say 3000 and were giving you a 50% off. They are going to think, Holy crap next year is going to be a huge price increase.

[sildoc]

Originally Posted by sharperimagelawns

I am trying this for the first time this year as well. I have offered a 5% discount to all customers who pay their yearly balance up front. If its a new customer I would do what some of the rest have said, mark up the original quoted price a bit then discount it. If its a returning customer i would just discount last years price by 5% or so and still be thankful to have gotten paid up front.

While this is great you don't want all of your customers doing this. Kind of like your stock portfolio or IRA, never have all your ducks in one basket. Unless you are really good at managing your money (most aren't) this will cause you heart ache towards the end of the year.

[weeze]

Originally Posted by sildoc

This only works if you think you have them signing now. If they are price shopping they will know the difference and it still comes down to quality and a decent incentive for them to go with you. I could say 3000 and were giving you a 50% off. They are going to think, Holy crap next year is going to be a huge price increase.

price shopping is never gonna equal out. here where i live i charge $50 for a yard for example. another guy will do it for $40 and yet another will charge $60. the pricing is all over the place. some would even do it for $35 and others would shoot for $65. there is no standard price that everyone charges.

there should be no price increase or only a very little. you would still give him a discount the next year if he paid upfront. if he didn't pay upfront you would then charge the normal rate or a little more which would be a 3-5% increase. you don't tell him the percentage of a discount he's getting the first year. although at $3000 it would be in the 3-5% range.

[dc33]

Originally Posted by grandview (2006)

Check or cash?

^ theres your answer

[Exact Rototilling]

Posted via Mobile Device

[weeze]

are you talking about someone that takes bids each year? if so i wouldn't even fool with it to begin with. no loyalty in those types of accounts so why fool with them just to be underbid the next year? waste of time if you ask me.

i don't want price shoppers i want loyal customers.

[weeze]

$3000 isn't that much for 3 properties.

i have 2-3 accounts where i make $2000 a season per property.

[weeze]

Originally Posted by dc33

^ theres your answer

not sure what you mean by this. care to enlighten me?

yeah i didn't think so.

[DCMmmkay]

are you talking about someone that takes bids each year? if so i wouldn't even fool with it to begin with. no loyalty in those types of accounts so why fool with them just to be underbid the next year? waste of time if you ask me.

No this is just a person that I've known for quite a few years. He works in the same business as my dad. The properties I'm looking to mow are his rental properties. They are small residential properties that will take me 30 min max on each one solo. One is just an open lot.