Knock off a percentage?

Discussion in 'Lawn Mowing' started by DCMmmkay, Feb 27, 2013.

  1. sharperimagelawns

    sharperimagelawns LawnSite Member
    Posts: 80

    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.
     
  2. sildoc

    sildoc LawnSite Silver Member
    Posts: 2,925

    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.
     
  3. sildoc

    sildoc LawnSite Silver Member
    Posts: 2,925

    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.
     
  4. weeze

    weeze LawnSite Fanatic
    Posts: 8,512

    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.
     
  5. dc33

    dc33 LawnSite Member
    from Indiana
    Posts: 240

    ^ theres your answer ;)
     
  6. Exact Rototilling

    Exact Rototilling LawnSite Fanatic
    Posts: 5,359

    Posted via Mobile Device
     
  7. weeze

    weeze LawnSite Fanatic
    Posts: 8,512

    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.
     
  8. weeze

    weeze LawnSite Fanatic
    Posts: 8,512

    $3000 isn't that much for 3 properties.

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

    weeze LawnSite Fanatic
    Posts: 8,512

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

    yeah i didn't think so.

     
  10. DCMmmkay

    DCMmmkay LawnSite Member
    from Indiana
    Posts: 57

    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.
     

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