Would you offer a discount?

Discussion in 'Lawn Mowing' started by Lawn-Scapes, Jan 23, 2002.

  1. Lawn-Scapes

    Lawn-Scapes LawnSite Silver Member
    Posts: 2,810

    I got back from a meeting with one of my clients attempting to get an "agreement" signed..

    They may be interested in full service which includes: weekly lawn maintenance, landscape maintenance, fertilizing, mulching, 2 aerations, and an overseeding.

    Thier total for the year will be $4830.00

    There also may be the possibility for extra work such as some landscaping...

    This account is in a rather nice neighborhood in which I have only 2 other accounts..

    I'm hoping they will play a role in acquiring new clients..

    Would a discount help? How much.. 5%? 10%? None?

    What has your experience been?
     
  2. KirbysLawn

    KirbysLawn Millenium Member
    Posts: 3,486

    Would all depend on how much of the $4830 is expense and how much is profit.
     
  3. HBFOXJr

    HBFOXJr LawnSite Bronze Member
    Posts: 1,712

    Depends what's the hold up in making the decision. If it is not price then discount won't help. If they are procrastinating, money won't help. Just working on them for a decision. This business of discounting all the time just leads to bad trends. A discount should be something special for a reason, not an everyday occurrance.

    Discount 5% for pre-pay for the year.
     
  4. ladibugg

    ladibugg LawnSite Member
    Posts: 79

    I agree. Discounts do not motivate. If you want to motivate it has to be something people can touch, not a number on a peice of paper. Offer a special planting somewhere on the property if they sign now or offer a big office plant as a bribe. Take them out for a liquid lunch and keep your pen handy. If you have profit in the bid price use it to motivate. You said it could lead to more jobs in that area, make your profit on them. If there is not profit in the bid retract it and rethink it.
     
  5. LAWNS AND MOWER

    LAWNS AND MOWER LawnSite Bronze Member
    Posts: 1,129

    TSG-- How bad do you want this account? You could just raise the price to $5,100 and then give them a 5% discount. I'm with ladibugg and HBFOX on this one. If you give them a $$$ discount then they will come to expect one each year. I prefer to give freebies such as a free mowing or free fert. app if the customer prepays a large chunk of $$$$ or if they refer me to new customers.

    LAWNS AND MOWER
     
  6. kutnkru

    kutnkru LawnSite Silver Member
    Posts: 2,662

    You might want to consider something like offering them a yard of mulch if they will be buying more than 5 for their site.

    Even before the "added" labor costs, most associate the higher tag of $40(+) with the product.

    And for a product that many buy for approximately $9-13/yd it can often be viewed as giving something tangible back to the clients.

    Just my .02
     
  7. Lawn-Scapes

    Lawn-Scapes LawnSite Silver Member
    Posts: 2,810

    I think I will throw the discount idea out the window... I've been more than generous with my services/prices to many in the past.. it's time to take care of me

    Kris.. you lost me with the mulch. I couldn't tell whether you were saying to discount only the cost of mulch or both mulch & labor. I wish my costs were $9-13. I'm in the $18-20 range here. I charge $55-60 installed.

    Thanks again
     
  8. Atlantic Lawn

    Atlantic Lawn LawnSite Senior Member
    Male, from Outer Banks NC
    Posts: 940

    No discount on this one,his payoff will be the best lookin' yard in the area !
     
  9. Todd Cannon

    Todd Cannon LawnSite Member
    Posts: 8

    We offer a 5% discount for prepayment of entire contract. We never discount services because of potential clients. Each account must stand on its own merit.
     
  10. kutnkru

    kutnkru LawnSite Silver Member
    Posts: 2,662

    Tom

    I meant the entire sha-bang!!! Give them ONE FREE YARD installed. Then the remaining 40 will be adjusted somewhere into your bid down the line Im sure -LOL!!!

    I dont like to come across as dishonest, just creative salesmanship is all. If its an account that you really want its items like mulch or fert (depending on lot size) that can be "freebies" and used as sentiments of gratitude for the clients.

    Should we have to give anything away for our services ABSOLUTELY NOT!!! But there is nothing wrong with creative sales tactics that make us look like we are. Its no differenbt than car dealerships and whether you buy foreign or domestic, you still get NOTHING for FREE - regardless of the promotions.

    Hope this clarifies some.
     

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