Offering discount Incentive

Discussion in 'Business Operations' started by C Cutters, Feb 12, 2007.

  1. C Cutters

    C Cutters LawnSite Member
    Posts: 33

    I was just wondering how all of you out there feel about offering incentives to new customers (for when I pass my door hangers out.) I had planned on offering new customers 15% off the competitors price. To be worded in the door hangers as "We'll beat our competitors price on our weekly mowing service by 15%" Good idea or bad idea? Thoughts appreciated


    P.S. "Our competitor" is a specified list of other companies that we have



    Thanks
     
  2. sildoc

    sildoc LawnSite Silver Member
    Posts: 2,925

    Bad Idea. It brings up that you are cheap. I would offer something more like 25% off aeration or 10% off bark or mulch. Something that lands you more work. You don't want to lower the price in an area as it will bite you in the @ss later if you do.
     
  3. Woody82986

    Woody82986 LawnSite Silver Member
    from DFW, TX
    Posts: 2,128

    Not only no but hell no! If you are going to offer something like that, I agree with sildoc that it should be some sort of percentage off an add on service. That way you get more work and you aren't being yanked around based on what your competitors charge.
     
  4. LawnGuy73

    LawnGuy73 LawnSite Bronze Member
    Posts: 1,945

    I was thinking about offering like a twenty five dollar gift card or something with a signed contract this year but who knows...
     
  5. zz4guy

    zz4guy LawnSite Senior Member
    Posts: 901

    I dont' see how it could really be considered a "cheap" company just because they offer a sign up incentive. A lot of companies do this just to get their customers hooked. Cable companies, phone companies, almost every service out there really.

    BTW I am going to offer 10% off to my new customers. 15% seems a little high.
     
  6. Kickin Your Grass

    Kickin Your Grass LawnSite Senior Member
    Posts: 479


    I would say no! Lets say you price the yard and you say to yourself its worth $50 per cut but it turns out your competitor is doing in for $40.00. Now your going to do it for $32? No way!

    Why not word it 15% off any extra services?
     
  7. Kickin Your Grass

    Kickin Your Grass LawnSite Senior Member
    Posts: 479


    I would say no! Lets say you price the yard and you say to yourself its worth $50 per cut but it turns out your competitor is doing in for $40.00. Now your going to do it for $34? No way!

    Why not word it 15% off any extra services?
     
  8. C Cutters

    C Cutters LawnSite Member
    Posts: 33

    It seems for the most part though in my past experience, I have ALWAYS come in uder the competition. I am just a one man crew right now without any overhead. I do want to become large and frankly would not mind doing a yard for a FEW dollars less. And I think I might switch back down to 10% off a yearly contract, as opposed to 15%.Good Idea??

    As well, I know some peoplefeel this might attract cheap customers, but the other guy brought up a good point, about how many other companies offer incentives. Would, perhaps, now that I think about it, it be better to offer 10% off a yearly contract as opposed to 15% off the competitors price....that way I'm only pricing against myself.. What do ya'll think?
     
  9. d&rlawncare

    d&rlawncare LawnSite Senior Member
    Posts: 741

    1st-Are you sying you get gas/insurance/truck payment/blades etc for FREE??
    You have overhead you just dont know it.
    2nd-Its a good idea to make it 10% off if you FIRST mark it up 10%!!!!!! Make the costumer THINK its 10% off.

    3rd-You want to grow? Might want to look into that overhead thing.

    4th Incentives are good IF you can get a SOLID yearly contract. Again mark up 10% then offer that 10% off. Or offer 15% off all other services as the other post said.

    A friend of mine is a used car salesman. Ever hear of that push/pull/drag your car in and we will give you $2000 min trade in? Thats because they have marked up there used cars to cover that cost.

    Just my opinion(s)..by the way what do you charge for an average lawn? What do YOU make an hour gross?
     
  10. Vikings

    Vikings LawnSite Bronze Member
    from canada
    Posts: 1,657

    This is why I never offer such deals, even for the elderly. It's dishonest and I don't even believe it when I am offered deals like that unless its at a store where you purchase items and I have an idea how much they cost.
     

Share This Page