discounts

Discussion in 'Lawn Mowing' started by HOMER, May 21, 2001.

  1. HOMER

    HOMER LawnSite Gold Member
    Posts: 3,183

    Gave an estimate the other day for a lawn renovation so to speak. Aerate, fertilize, fill divoted areas with top soil, mow, edge, trim. Customer also wanted price on yearly maintenace package so I quoted him $1200.00 for the year, $100.00 per month. He calls today to give me the go ahead on everything but asks this question, if he paid everything up front, which he would rather do:blob3: (me too at this point) would I offer him a discount. This is not a common question for me so I told him I would be interested but would get back with him soon...............after I talked with all my buddies on here!:p

    I can always use lump sum money, how much of a discount is customary for pre-payment. I was thinking 10-15 % How bout it?
     
  2. kris

    kris LawnSite Bronze Member
    from nowhere
    Posts: 1,579

    Only you know if you can discount 10% and still make your money...Sounds okay to me...think I would start at 5%,,,see how he reacts
     
  3. Charles

    Charles Moderator Staff Member
    Posts: 7,950

    Ya i agree with the 5% at the most just to make him think he is getting something off and not hurting your bottom line that much. Since this doesnt happen to you often and the drought may continue and the up front money will come in handy. But bringing in topsoil and areating, spending money on fertalizer all that doesnt give you much room to play with.
     
  4. Barkleymut

    Barkleymut LawnSite Bronze Member
    Posts: 1,117

    7.5%, is my vote. Still haven't had anyone take me up on it.
     
  5. LoneStarLawn

    LoneStarLawn LawnSite Bronze Member
    Posts: 1,415

    I wouldn't give anything over 9%...it is typically around 7% to 8% in our area for that type of discount.
     
  6. Holloway Lawns

    Holloway Lawns LawnSite Senior Member
    Posts: 253

    He has already said he wants you to do it and that he would rather pay up front that is great. I would almost bet he will take any discount you offer him. I would probley offer one free month so take an even $100 off the total. That is about a 8.4 % discount.
     
  7. Randy Scott

    Randy Scott LawnSite Bronze Member
    Posts: 1,915

    What happens down the road when the money is spent and you're buying gas and doing maintenance and wondering where the money went? Not that you will, but it is possible. I prefer my people on monthly payments, gives me a little more of a steady income. To each his own though. The thing about this deal is it costs you the same to do your job whether you get paid up front or not. That $1200 is not going to go in the bank or wherever and make you any kind of money, like they are doing you a favor or something. I had one customer offer it and I said the price is the same either way. Still got the account! I know every situation is different, but when I shop once a week or once a month for groceries, the price is the same.
     
  8. Lee Homan

    Lee Homan LawnSite Member
    Posts: 163

    Sounds like you may want him to sign a contract so that down the road say in july and august when your not mowing his lawn that often he doesn't expect some kind of refund.
     
  9. AndrewLawn

    AndrewLawn LawnSite Member
    Posts: 92

    percents,decimals,fractions of numbers......why don't you just make it simple and take a month off(in other words,first maintenance month is free).
     
  10. GreenQuest Lawn

    GreenQuest Lawn LawnSite Senior Member
    Posts: 822

    Hey Homer,

    I give 5% off for pre-pays. Saves time & stamps.
     

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