Have you ever cut your price to keep a good customer

Discussion in 'Lawn Mowing' started by Bassman, Mar 30, 2013.

  1. Bassman

    Bassman LawnSite Senior Member
    Posts: 270

    Scenario..I have a great paying customer that wants to go from a yearly rate to a per cut basis probably cause he thinks he will save money, we all know it works out the same over a calendar year.

    I've explained this to him. He may want to save a few bucks by going with a low baller. I would normally say adios amigo no big deal BUT he is in the middle of 5 other customers that I have a long term business relationship with, I'm afraid if I lose his business the word will get around and the dominoes will begin to fall.

    I would hope the loyalty of my other customers over the past 12 years would prevent this from happening but one never knows.

    Would you give him a discount in order to not rock the boat in the neighborhood? How would you know he wouldn't keep his mouth shut about a special deal? That's the dilemma.
     
  2. DEPENDABLE LANDSCAPING

    DEPENDABLE LANDSCAPING LawnSite Bronze Member
    Posts: 1,343

    I think you nailed it with your last sentence. If you are treating those accounts fairly you should be fine. I understand your dilemma but I wouldn't cut his rate in order to keep him.
    Good luck with your decision.
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  3. greenstar lawn

    greenstar lawn LawnSite Senior Member
    Posts: 648

    Well if you've been in this business for 12+ yrs you know neighbors talk
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  4. dwlah

    dwlah LawnSite Senior Member
    from Argo Al
    Posts: 558

    Make the deal and I doubt you will get to the truck before he tells your other customers
     
  5. Bassman

    Bassman LawnSite Senior Member
    Posts: 270

    I'm not so sure, I picked up another customer because of his recommendation, this is an upscale area with very well to do clients, at this point I'm not quite sure why he wants to be billed per cut after years of faithfully paying a set yearly rate.
     
  6. grandview (2006)

    grandview (2006) LawnSite Gold Member
    Posts: 3,466

  7. Bassman

    Bassman LawnSite Senior Member
    Posts: 270

    Exactly right, that's what I have done with the most current statement. I have inserted a note explaining it in detail. He is well off and owns multiple homes, he should be able to figure it out, he will pay slightly more for 7 months growing season and less in the off season, comes out the same in the end.
     
  8. Greg78

    Greg78 LawnSite Silver Member
    Posts: 2,010

    I know what I would do, no special deal and no per cut billing. We only offer year round service with level billing. Do you offer per cut service? If some of the other 5 customers come to you and want the same type of per cut billing then what? Once he gets the 5 week invoices coming in he'll want to switch back.
     
  9. orangemower

    orangemower LawnSite Silver Member
    from pa
    Posts: 2,773

    You already explained everything. He should be fine with it. Maybe he wants the extra cash in the winter months. You said "at this point I'm not quite sure why he wants to be billed per cut " so why not ask?
     
  10. Bassman

    Bassman LawnSite Senior Member
    Posts: 270

    Good point! I thought I would wait until I billed him to see what his response is if any. He will be paying less this month but more the next 7 months. I should have hashed it out as soon as he asked to go to per cut basis to understand why?
     

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