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How about a discount?

Discussion in 'Lawn Mowing' started by Illini_Fan, Mar 14, 2008.

  1. Illini_Fan

    Illini_Fan LawnSite Member
    from IL
    Messages: 126

    Do you ask the grocery store or gas station for a discount? I would guess that you are a more frequent customer there, than you are at a power equipment dealer. How about the party store where you regularly purchase your beverage of choice, do they offer a fleet discount? I doubt it.

    Do any of you, mow for free? Do any of you, offer a discount, to those who purchase your services for a certain consecutive number of weeks or months?
    Do you give them a discount, just because they ask for it?

    Why would you give up your profit?

    What do you think of price chopping LCOs?

    Don’t you think a dealer has enough to do, just to stay competitive with other dealers?

    Planning their marketing strategy, store layout, inventory, and expenses keep them pretty busy, as well. And then there are employees and many other things. Please, don’t forget, that things come up in their lives too and they need a little more money than they thought.

    Now, visualize this.

    The dealer has been waiting for this season to start, so he can have a boost in cash flow, along with some profit to buy his family some things he promised them when business got better. And then it happens. The F250 supercab diesel rolls in, Joe Mower gets out and comes into the store. The dealer and Joe look at a few pieces of equipment (some that was carried over from last year, due to lack of rain that interest was paid on). Knowing his competition, the dealer either gives Joe a price or he has preprinted tags on the equipment. Joe looks at the dealer and asks, Can I have some of your profit? It sounded like “Can I have a discount, if…?”

    I would like to ask each one of you, that reads this, to go and look at your business plan (Do you have one?) and highlight the part where you planned to give up profit. Then, if you have an accountant, make an appointment with them. Go in and ask them this question.

    How wise is it, to give up profit?

    Their answer might be something like this “No, that will be $50.00.”

    I hope you all have a profitable 2008!

    I will close with this. Not one of you own a lawn/landscape business or an outdoor power equipment dealership. You all own an investment company. You invest your money, your time, and your knowlege into it. Why?

    To make a profit!
  2. joshco84

    joshco84 LawnSite Senior Member
    Messages: 411

    I agree with you for everyday once or twice customers, but giving a small price break to a regular is a good business strategy in my opinion. It keeps them coming back and buying lots of equipment/service/parts. Also dealers can afford a small break to big customers because lets face it, there is a pretty good markup on outdoor power equipment. Not saying you should get a huge break, but i think a small one is not out of line.
  3. Flex-Deck

    Flex-Deck LawnSite Silver Member
    Messages: 2,845

    So it goes without saying that you give discounts to your loyal customers also? It goes without saying that there is a pretty good markup on mowing fees also! Are you willing to be beat down to 10% profit margins?
  4. TomB

    TomB LawnSite Member
    Messages: 60

    Just curious - what do you think a dealers profit margin is on equipment?
  5. Flex-Deck

    Flex-Deck LawnSite Silver Member
    Messages: 2,845

    joshco84 - are you there?
  6. joshco84

    joshco84 LawnSite Senior Member
    Messages: 411

    I have a brother in law that owns a dealership, i know what have a possibility of making. And my good customers, i will skip on increases when others do get them.
  7. joshco84

    joshco84 LawnSite Senior Member
    Messages: 411

    sorry i was typing
  8. Frue

    Frue LawnSite Bronze Member
    Messages: 1,472

    Minium of 10%. I dont pay retail just will not do it when it comes to lawncare equipment. You know this going in thats why when it comes to certain open houses things seems to go up. For example I went 2 weeks before the show to a certain dealer and the price for the blower was 149.99 day of the show 159.99. Yea Johnny I will cut you a break. Please I am not stupid.

    This is part of my business plan never pay retail for the equipment.
  9. joshco84

    joshco84 LawnSite Senior Member
    Messages: 411

    also notice how i said small discount in my post? i didnt say give them 10 percent off, just let them know you want them to come back
  10. kensmobile

    kensmobile LawnSite Member
    Messages: 1

    Why don't you purchase from your brother in law, won't he sell you at wholesale?

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