discount for "full service?"

Discussion in 'Lawn Mowing' started by bobbygedd, Feb 3, 2003.

  1. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Posts: 10,178

    in previous years we have given a 5% discount for "full service" customers. that is, for the customers that had us provide spring and fall cleanup, fert program, weekly mowing. we just sent out contract renewels. we did not give the 5% discount this year. im assuming the crap will hit the fan once everyone has read them and realizes this. do u guys offer a discount for full service?
     
  2. devildog

    devildog LawnSite Senior Member
    from sc
    Posts: 270

    No, our employees don't work for less money on "full service accts", why should a customer pay less ???????? With Regards... devildog
     
  3. Mark P

    Mark P LawnSite Senior Member
    Posts: 352

    It all depends, on some of my clients who have been with me from the start, sometimes on those clients i do give a small discount for full service, and it works out just fine, in the long run i make that money back with the tips and gifts i get on Christmas/Thanksgiving..........Marks Mowing Service
     
  4. Randy Scott

    Randy Scott LawnSite Bronze Member
    Posts: 1,915

    I've never offered any discount for people. Maybe I should, maybe I shouldn't. Anyways, I guess you just need to give them an explanation as to why no discounts this year, if you have an explanation. Otherwise, I suggest coming up with one. You already put down the groundwork by giving them one initially, so naturally they will expect one again. I'm sure some will be concerned and some may not.
     
  5. cklands

    cklands LawnSite Senior Member
    from MA
    Posts: 360

    I use discounts. I always have and always will. The more work you can get from a single customer the better off you are. You can make more money on all of the "enhancement" services over the course of a year than you can if you are just mowing them. If they are willing to spend the money for the complete package then why not give them the 5%. For every $1000 all you are giving back is $50. And let's be serious...can't you just add that $50 into the estimate to begin with. Then you really aren't losing the dough and the customer doesn't know any different.
     
  6. dougaustreim

    dougaustreim LawnSite Senior Member
    Posts: 488

    People love discounts. Set your overall pricing structure so that you have in enough in your overhead to cover the breaks you give out. Our local K-Mart parking lot has been deserted for months. This weekend they started the going out of business sale. 10% off is all their offering so far. The parking lot is packed.

    Also it costs less to sell more to existing customers than to go find new customers. Think of it this way, the discount is offset by having to buy fewer fliers etc to find new customer.

    Doug
    Austreim Landscaping
     
  7. Gravely_Man

    Gravely_Man LawnSite Silver Member
    Posts: 2,075

    Dougaustreim nailed the reply on this one. People love to think they are getting a "deal." Just mark your prices up so that if the customer goes "full service" they are getting the "deal" but you are still making a nice profit. That I the way I run things here.

    Gravely_Man
     
  8. xpnd

    xpnd LawnSite Senior Member
    Posts: 378

    When I add a major service to the business I will discount that particular service the first year however it's a 2 for 1 deal. For every dollar I give them in a discount I take two dollars from the customer. The next year the discount goes away.
     
  9. bubble boy

    bubble boy LawnSite Bronze Member
    Posts: 1,020

    when you say renewels, you mean customers from last yr?

    does that mean before this yr you gave 5% every season? so $1000 acct you knocked off $50 bucks the first season, then you gave 5% off $950 the next yr?

    in other words do people expect another 5% every yr? is that why they'll be mad?

    seems way to much to be doing. 5% one shot discount not bad, but every year not possible.

    we avoid discounts of a $ figure. i may throw in something, like a free fert, if they are full service and/or pay with post dated chqs.

    but as stated above, i just hide the cost to them in the full yr price.
     
  10. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Posts: 10,178

    no, its not a "snowballing" 5% discount. most of my full serves are around 2000 a season. so i was giving 5 % of 2000, or $100 discount. the next year, prices would increase like 3%, so it would be $2000 + 3%, then minus 5%. ah, anyway, for those who call and inquire i may just offer them a one time service on us, or a discount on mulching the beds or something.
     

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