what are your thoughts discounting clients next to eachother?

Discussion in 'Lawn Mowing' started by BadRancher, May 5, 2011.

  1. BadRancher

    BadRancher LawnSite Fanatic
    Posts: 5,887

    I just want your thoughts on discounting when you have clients next to eachother. Example: you have 3 customers next to eachother, normal price is $35, but since they are grouped up, you cut them for $30 maybe even 25? I haven't done this yet, but I am trying to line up business close to existing customers. I mow PT in the evenings, so the closer the better. I'm also trying to think of win-win ways to offer deals that are beneficial to me.

    Your thoughts please...
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  2. TuffWork

    TuffWork LawnSite Senior Member
    Posts: 507

    Whether you are big or small close together is an advantage. Driving time is a killer. Especially if you have someone in the truck making an hourly wage to sit there. I try not to give a discount if I can get away with it, but sometimes customers are smarter than you think and will try to get a discount from you for referring their neighbors. In that case I try to discount the one who is the referrer and not the referral. Incentives for customers who get you customers can be worth it. Often times I'll say, "Now don't tell everyone I'm cutting you a deal, because I can't do it for everyone but..."
     
  3. knox gsl

    knox gsl LawnSite Platinum Member
    Posts: 4,851

    I don't discount any current service for a referral, but will discount an upsale.
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  4. BadRancher

    BadRancher LawnSite Fanatic
    Posts: 5,887

    Not really talking about referrals, but lining up new clients on the sides or across the street of existing one.

    The only way it would work out is if I didn't have to reload the mower, lock down equipment and drive down the street. Say I lined up 3 next to eachother @ $30 each, and it only takes 1.5- 1.75 hours to do them, thats $51-60 an hour gross and no drive time... But mowing three yards and drive time, unload/load equipment drive & mow time together @ $35 could be up to 2.5 hours which is $42/hour gross plus vehicle gas.
     
    Last edited: May 5, 2011
  5. Hawkshot99

    Hawkshot99 LawnSite Senior Member
    Posts: 945

    Have done it in the past and it was great. 4 houses right together. Mowed all four real quick with no drive time. When I was pricing them this was considered.

    Then 1 moved away, and another decided to start mowing his own lawn for the exercise, and now I only had 2 of the 4 lawns but they were still discounted. So now how do I tell them I am raising your price because the neighbor moved away?
     
  6. TuffWork

    TuffWork LawnSite Senior Member
    Posts: 507

    I have ten within about 2 blocks of eachother. I only move the truck 5 times, and usually only a few houses down. I haven't raised my prices on the ones that have referred new ones. I guess that's what I'm saying. As you grow, so do prices. Don't bite the hand that feeds (in this case customers that refer others and don't add unneeded overhead)
     
  7. topsites

    topsites LawnSite Fanatic
    Posts: 21,654

    You have to be real careful how you do it, otherwise what's going to end up happening is one will drop you
    (for w/e reason) and you'll be stuck with the other at the discounted rate, and don't think it won't or can't happen.

    That having been said, I do it but it's my decision and it's always on a case by case basis.
     
  8. nobagger

    nobagger LawnSite Gold Member
    from Pa
    Posts: 3,065

    Yes we do, you don't have to go crazy. People are ecstatic to save even a few bucks these days (like everyone). It just makes sense and is a good selling point. The most we ever did in a row was 4 upscale homes. One was a friend of mine who lined these up for me so his was dirt cheap but we made good money and the customer saved a few bucks, it was a win-win for everyone.
     
  9. ALC-GregH

    ALC-GregH LawnSite Fanatic
    from PA
    Posts: 7,053

    I totally agree. Having a group of customers all right next to each other is the fruit of the business. It's where you can actually make good money IF you don't go and discount all of them. Price them right as if you only had the one.
     
  10. Golfpro21

    Golfpro21 LawnSite Senior Member
    Posts: 563

    we had 4 properties lined up.....gave the entire group of owners a nice sicount because all properties were full service (fertilzing,seeding,aeration,grub control,cutting) then one old lady went nuts and tried to tell me I promised her bi-weekly cutting (which we don't do) and expected the same price, so we dropped her, but yes you still have to offer the original price to the others, so just think out all the scenarios
     

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