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Discussion in 'Lawn Mowing' started by qualitylawnmanagement, Nov 29, 2006.

  1. qualitylawnmanagement

    qualitylawnmanagement LawnSite Bronze Member
    Messages: 1,000

    Anyone give discounts for people who sign up for the whole year that includes a full property service and covers spring clean, mowing fert/ weed killer, aeration, fall clean up, and snow removal? If so how much much of a discount do you give them? What % do you take off? And how do you go about giving them their discount do you just take a certain amount off on each bill?
  2. rodfather

    rodfather LawnSite Fanatic
    Messages: 9,501

    %'s I have seen in the past range from 5 - 10 max for payment in full upfront.
  3. LwnmwrMan22

    LwnmwrMan22 LawnSite Platinum Member
    Messages: 4,373

    I agree with Rodfather, but I'm at no more than 5%, and that's if it's upfront.

    If the customer is going to make equal payments monthly, then they're just sold on the fact that they can figure their budget for the entire year.

    Most businesses like it, once they see the numbers.

    I DID have one guy yesterday though that said no way is he going to pay $150 / month to have his lot plowed.

    It was 2 guys that have identical lots next to each other and I told them $300 for the two of them on a flat monthly fee, or $150 each.

    He said absolutely no way, that he was going to get ripped off.

    It'd be about an hour to get the two done, along with the sidewalks, based on 18 snowfalls / year divided by 6 months, at $100 / hour.

    He said that last year the guy did the two of them for $50 / time, together, not each.

    I said, "where is he now?"

    He said the last guy took a job out of state.

    The guy 2 years ago quit showing up 1/2 through the year and the guy before that never showed before noon.

    I said, "well, you're getting what you pay for and left."

    Some people just don't get it.
  4. gravedigger5

    gravedigger5 LawnSite Senior Member
    Messages: 505

    I offer a 5% discount to all my fert customers if they prepay the entire season. It helps generate cash flow early in the spring to help pay those fertilizer and chemical bills. But offering that to sign up for a full package of services might be tempting to help sell to customers that are not already get the full package.
  5. topsites

    topsites LawnSite Fanatic
    Messages: 21,653

    H3ll no, right now the IRS sure isn't giving me no discounts!

    Only thing that's almost reasonable is fuel, I'm doing the best I can to keep prices where they are, and I don't go down.

    But ok, IF someone wanted to pay for the entire year upfront, 5% is fair, that's how much I would get once I put their money in my money market acc't, I can live with that. Sorta, there's still a pro-rating issue here, but first I need to see someone forking over a grand or so upfront.

    Otherwise forget that noise of 'but I'll be your customer all year...'
    That promise is empty and their loyalty means little, at least that's been my experience.
  6. carcrz

    carcrz LawnSite Silver Member
    Messages: 2,085

    5% discount if paid in full before services start.

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