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Old 05-31-2013, 03:45 PM
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gcbailey gcbailey is offline
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Location: southern WV
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Do you give multiple property discounts (commercial and residential)

May has ended up being a good month to us, really wasn't hoping for anything out of the usual, but we've been blessed. To get to the point, do you all give discounts for multiple properties either commercial or residential... Here's what I'm facing, and I want to be fair to all the parties involved because both situations can be really long term.

I will say we currently have a couple commercial properties now that have multiple locations, but they have always been on a bid basis and they cover about 4 counties and no one else wants to do them or travel, even though they pay well.

We picked up about a 6 acre commercial from a large regional business (they called us for a price), and gave him a fair price, which apparently he thought was dirt cheap. This company owns several properties and businesses and have presented us with the opportunity to do 2 more with the possibility of more to come... one is 1.5 acres, easy mow, about 45 minutes of trimming. The second is about 4 acres, easy mow, probably 1.5 hours trimming (lots of burms, mediums, that such).

The residential side is a home owner with a great home on about 3 acres, about a $150/week property... 2 guys, 2 hours, have to use a ZTR and WB both, lots of trimming, pool area, lots of blowing... Well, the family also has several rental properties and they want us to take them over too, all of them city lots (5 total). He also owns a construction business and he wants us to take care of it, about an acre w/trimming.

My question as somewhat stated before, at what point, if any, would you start giving discounts? Like I said, I don't want to screw the people (business) and this be a one season thing, but this is somewhat new territory for us after 8 years in the business.
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Old 05-31-2013, 04:01 PM
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clydebusa clydebusa is offline
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I give no discounts, price fair and go on. If one already thinks you are dirt cheap, sounds like you are leaving money on the table.
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Old 05-31-2013, 04:02 PM
Stillwater Stillwater is offline
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Their is no reason to discount. Why would you?.....price each property as you normally would.
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Old 05-31-2013, 04:25 PM
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gcbailey gcbailey is offline
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Location: southern WV
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Quote:
Originally Posted by clydebusa View Post
I give no discounts, price fair and go on. If one already thinks you are dirt cheap, sounds like you are leaving money on the table.
I think it's because this company can pretty much price as they want, because they are a service provider, so they can ream a new one as they wish. I priced it fair and making enough to cover all and then some, but yes, I probably could have went $100/week more on the commercial, but still...

What I was thinking of as a "discount" on the residential side was basically, we don't unload for less than $35, which these city lots would fall in that category.... I was thinking of doing them for $30 each... Showing him what would basically be a $25/week discount for all the rentals combined... $150 vs. $175. In all honesty a 2 man crew can be in and out mow, trim, blow and go in about 15 minutes each and they are all within a 8 mile radius and can be done on the same day, same route.

Just thinking out loud....
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Old 05-31-2013, 04:31 PM
Stillwater Stillwater is offline
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Stop thinking out loud......
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Old 05-31-2013, 04:43 PM
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gcbailey gcbailey is offline
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Quote:
Originally Posted by Stillwater View Post
Stop thinking out loud......
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I've been told that more than once...
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  #7  
Old 05-31-2013, 04:51 PM
GrassGuerilla GrassGuerilla is offline
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Substitute "giving away the profit" for "discount". Still sound like a good idea? You got his business based on fair pricing. It's called profit. It's not a bad word.
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Old 05-31-2013, 05:05 PM
kawakx125 kawakx125 is offline
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i'll offer a bit of contradictory thinking...it sounds worthwhile to give him the discount on those, it sounds as though the customer is well connected and could potentially lead to more business down the road. i'm not about leaving money on the table, but also think of the money you are leaving on the table if he goes elsewhere.
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  #9  
Old 05-31-2013, 05:06 PM
TCW TCW is offline
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Location: West Texas
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Another way of viewing multiple property discounts is that you are pricing these properties as a group. If for some reason they discontinue service at one or more properties, you are left doing the remaining properties at a lower price than if you priced them individually. Some people think that since they will already be in the area, or since that company is already paying the $XX per week they should give them a price cut. However, what if the existing properties or clients don't continue service? Can you still make money if you only service that one property at a discount?

We have a group of regional banks that we service weekly. It started out at 16 locations, and over the last year and a half they have consolidated some branches in smaller towns and we are down to 11 locations. If we would have priced them all together based on drive time, labor, and equipment costs, we would be losing money on each mow. We priced each one as if we were starting at the shop, driving to a location, mowing, and coming back to the shop. As a result, we are keeping our margins in our budgeted range and can keep that customer.
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  #10  
Old 05-31-2013, 05:31 PM
Joey waid Joey waid is offline
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I give multiple property discounts as long as all properties are paid with one cheque, I also give referral discounts. Why not reward people for helping you, what do you have to lose other than more work.
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