Knock off a percentage?

Discussion in 'Lawn Mowing' started by DCMmmkay, Feb 27, 2013.

  1. weeze

    weeze LawnSite Fanatic
    Messages: 12,348

    either one. i'd make sure the check cleared before i did the first cut though.

    if it bounced i'd say $3250 cash or find someone else. :laugh:
    Last edited: Feb 27, 2013
  2. StanWilhite

    StanWilhite LawnSite Silver Member
    Messages: 2,380

    One thing I tell new (or prospective) customers is that "I price my jobs at a very competitive rate to start with, so I can't discount the price for multiple jobs very much at all and still stay in business". Not only do most people understand that, but the fact is, in my case at least, it's true.

    In addition, you can make the statement that (when it comes to giving discounts for multiple accounts) "if you see people taking 10 to 20 % off of their regular price for multiple accounts, I would ask myself what kind of mark up are they initially dealing with that would allow them to reduce the amount by that much and still stay in business"?

    Last edited: Feb 27, 2013
  3. Nate'sLawnCare

    Nate'sLawnCare LawnSite Bronze Member
    Messages: 1,001

    Did you factor in the possible price of fuel by mid-summer? If it happens to go toward $5.00/gallon, can you absorb that and still make a reasonable profit?
  4. sildoc

    sildoc LawnSite Silver Member
    Messages: 2,925

    I would approach it differently. I would bid it out at my normal prices and if paid in full cash/check would offer a 5% discount for not having to bill or hassle with collecting. If they bock at your pricing you know they are just price shopping.
    Quality first then price.
  5. herler

    herler LawnSite Fanatic
    Messages: 5,139

    Two percent net 10
  6. weeze

    weeze LawnSite Fanatic
    Messages: 12,348

    i hate to point this out but 5% of $3120 is $156. so you would be giving more of a discount than if he charged $3000.

    i have no idea what this means???
  7. sildoc

    sildoc LawnSite Silver Member
    Messages: 2,925

    I understand that. However from a marketing stand point it is a even %age. People relate to percentages rather than an amount off. If you said I will only give you 120 off he is going to say really? only 120 for 3000 worth. Now if you say I can give you 5%, either they do the math and renegotiate or sign. Marketing!!!
  8. Will P.C.

    Will P.C. LawnSite Senior Member
    Messages: 966

    If you really want the properties, I don't think padding your bid to adjust for discount is good advice. Chances are he is getting multiple estimates since he is already looking for a discount.

    For the made up number of 3120, 3k is fair. Gives the guy a weeks worth for free.
  9. weeze

    weeze LawnSite Fanatic
    Messages: 12,348

    that's where you mess up. you don't tell him the original cost. all you tell him is what you will charge. $3000

    he has no idea how much of a discount he is getting if any at all. if he asks how much of a discount did you give me you can just say 10% or something. how is he gonna know?
  10. sildoc

    sildoc LawnSite Silver Member
    Messages: 2,925

    We have actually started using fuel surcharges if it goes up x percent. Nearly all have understood and take it well. Only a couple have griped about it, but knew they would bock at any price change what so ever.

Share This Page