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Just a thought

Discussion in 'Irrigation' started by Mark B, Feb 7, 2006.

  1. Mark B

    Mark B LawnSite Bronze Member
    Messages: 1,020

    Has anyone ever offered a discount coupon when handing out flyers in a new neighbor hood? I'm thinking sumin like a start up, along with a shut down coupon. Maybe a $15.00 discount for using both coupons?? That would be a grand total of $30.00 savings for the homeowner. Just a thought.

    Here is the other. Has anyone ever tried to finance there on irrigation installs? Maybe set it up with a down payment to cover the materials, then have a 30 day no intrest. Then the interest goes to 8-12% till it is payed off?? I would think if you could pull it off like the credit card companies do you could make some $$$. I'm sure there could be some headaches along with it.

    Now this is only a brain fart. So don't give me to much crap about it.
  2. kozmo

    kozmo LawnSite Member
    Messages: 70

    hey sleepy we run coupons all the time it is amazing how long people hang on to a flyer with coupon. I have people had me a flyer that we delivered that are over a year old. Just make sure the mark-up price as much as discount.
    As for financing great idea but you should never be the bank we use john Deere and they offer 180 days same as cash and 8.9 for four years we get our money in 3 days. Great sale booster.
  3. YardPro

    YardPro LawnSite Gold Member
    Messages: 3,570

    john deer will finance our jobs for the customer.... we get our money, and JD deals with the payments..
    thier rates are: 90 days same as cash
    48 months at 7.5%
  4. PurpHaze

    PurpHaze LawnSite Fanatic
    Messages: 5,496

    Sounds a lot like many years ago when the auto manufacturers started setting up their own finance companies. They found out they could make even more money if they also handled the financing on their own vehicles. :)
  5. Mark B

    Mark B LawnSite Bronze Member
    Messages: 1,020

    That is what I'm talkin about Hayes.. What if you could make an extra grand through the financen? I"m not sure how much it would be but do you think the payment thing would be that bad?
  6. SprinklerGuy

    SprinklerGuy LawnSite Bronze Member
    Messages: 1,778

    I think to do the financing there are some laws....federal laws!

    Better look into that first eh?
  7. JimLewis

    JimLewis LawnSite Fanatic
    Messages: 6,872

    See, I think that's about one of the sleeziest things a contractor can do - entice someone in with a coupon or "discount" that really isn't saving the customer any money at all because the contractor is just going to mark the price up to cover the supposed discount.

    It's this kind of crap that gives contractors in general a bad name.

    If you're going to offer someone a coupon or a discount, make it real or don't do it at all.

    The usual objection to this is "Who is going to pay for it then? I'm going to take a hit???" YES! You are. In economics we call that an opportunity cost. You are paying something for the opportunity it provides you. In this case, by offering a coupon or discount, you are theoretically going to get a lot more new customers than you would have without the coupon or discount. And each new customer leads to future work, referals to their friends, etc. So while you may make $15 or $30 less on the first job you do for them, theoretically you more than make that up in the long run with future work you'll be doing for them, their friend, and their family. If you don't agree with that theory, fine. Then don't offer a coupon or discount.

    But to offer some fake coupon or discount that isn't really a discount at all is just dishonest and unprofessional.
  8. kozmo

    kozmo LawnSite Member
    Messages: 70

    your view of coupons surely entertaining to say the least.I would call it great marketing, as well as smart business. Seeing that i consider myself a very good contractor as well as a reliable one. I would also agree that that it could be called sleazy if your customers were not receiving value for there money. which a lot contractors have a problem with. Usually the contractors that complain are the ones we work circles around.
  9. Ground Master

    Ground Master LawnSite Senior Member
    Messages: 505

    I gotta agree with Jim Lewis on this one.
  10. sheshovel

    sheshovel LawnSite Fanatic
    Messages: 5,112

    I also totaly agree with Jim Lewis on this topic also he is right on in his reply and point of view.I feel the same way.

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