Group Rates

crazymike

LawnSite Senior Member
Location
Ontario
For those doing high production residential homes.

Have any of you had any luck offering group discounts?

ie, if you can sign up 3 neighbors you will all receive 5% off of seasonal contracts. 5 neighbors, 10%

Signing up multiple people in the same area allows the crew to bang through without loading/drive time.

One guy whips through all the properties on the stand-on while the other guy trims and then operator one helps finish trim and blow. It also makes it worth while for a 3 man crew on smaller properties because they are not tripping over each other.

Another advantage is people tend to trust their neighbors. A neighbor trying to convince them to spend X dollars a month is received better then you interrupting them while knocking on the door.

Thoughts? Opinion?
 

Glenn Lawn Care

LawnSite Silver Member
I tried doing that in a new housing development 2 years ago and it didn't work.
A few years ago I aerated a guys yards and two of his neighbors wanted theirs done also and they asked for a group rate and I gave them one. All 3 year small yards, real easy to do, took me 45 minutes for all 3 and walked away with $150 cash.
 

Big C

LawnSite Bronze Member
Location
Gonzales, La.
I choose not to do the bulk discount for multiple residentials....what happens if 3 of 5 customers break their contracts and bolt, now you're stuck with 2 customers that you are giving a 10% discount for nothing....you can't raise their prices mid season and you can't increase it 10% when the contract is up for renewal or they will bolt too. In this situation I would give each of the 5 customers 1/2 off of their 1st mow and charge them your regular rate for the rest of the contract, that way if the "package deal" breaks up you are not screwing yourself.
 

JBNC

LawnSite Member
I think it could work, but some problems could come up if you're not careful. What if 2 neighbors quit, are you still going to offer the one customer a discount? Or raise the price for the one guy who is sticking with you? I would write it out really detailed in a contract If you do try it. Personally I think I would stay away from it for seasonal contracts. For a one time thing like aerating or something, sure.
 

Exact Rototilling

LawnSite Fanatic
Location
Zone: 5B
I think it could work, but some problems could come up if you're not careful. What if 2 neighbors quit, are you still going to offer the one customer a discount? Or raise the price for the one guy who is sticking with you? I would write it out really detailed in a contract If you do try it. Personally I think I would stay away from it for seasonal contracts. For a one time thing like aerating or something, sure.
Yeah that can work out great if they all stick it out for mowing all season.
Zero plans on doing it ever again.

For one time gigs like aeration yes works great but only on the medium to smaller lawns.
 
OP
C

crazymike

LawnSite Senior Member
Location
Ontario
Yeah, I'm still trying to figure out how to deal with customers bolting.

Perhaps the discount is a credit at the end of the season.

That way only the customers that stuck with you get the discount. If some of the customers bail, you will still lose 5% on the one customer, but not 5% across the board.

If it's a $150 a month client, they sign up 3 neighbours.

$1050 each for the season.

5% discount for all 3.

They each save $52.50 on their last bill.

If all 3 stick it through, it costs me $157.50 in potential earnings.

But if only 1 sticks it through, it only costs me $52.50

At $100 an hour, that house now costs me an extra 3 minutes or $5. $150 for the season I will lose on that account. Plus their discount, so $200 in potential earnings.

Have to think this one through. Or my math is really wrong in my tired state
 
OP
C

crazymike

LawnSite Senior Member
Location
Ontario
however, first mow free, or 25% off the first month, works better.

Then maximum I'm out is $100 if all quit after the first month. That I can swallow.
 

Exact Rototilling

LawnSite Fanatic
Location
Zone: 5B
Okay ....in regards to aeration neighborhood discounts. I've gone back and forth on the aspect that ANY discount can cheapen your service.

So....has a same day as your neighbor discount ever back fired on you?

I am NOT getting 3X the mow rate here. In fact when I get busy with mowings I basically bag chasing after.aeration and focus on my mowing route and I only work.in aerations.when.I can.
Posted via Mobile Device
 

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