Knock off a percentage?

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

  1. DCMmmkay

    DCMmmkay LawnSite Member
    from Indiana
    Messages: 57

    These are small residential yards. I have accounts that exceed $8000 a season, but I'll take these small accounts all day long.
  2. shovelracer

    shovelracer LawnSite Silver Member
    Messages: 2,008

    General industry discount is 1 mow with full season. That mow will be the last so it will likely be a joke anyways since the grass will be going dormant. So that puts you at your $3000. On your end it eliminates processing 75 invoices, a bunch of checks, envelopes, stamps, and there is a benefit to getting your money up front. Add in fall cleanup and spring cleanup and go 10% and you'll still be alright. It's a cash infusion, your profit margin will be low, but you'll have a decent part of your seasons fuel bill covered which makes up for the deadbeats that forget to pay in July before they go on their 6 week vacation.

    Most of us forget we are working most of the year to cover our expenses. It's only the end of the year that we make our profit.
  3. herler

    herler LawnSite Fanatic
    Messages: 5,139

    I don't understand, if you're such a big shot, why you're in here asking us this first week on the job question.

    Something I learned in later years, something that took me years to get, how we come across...
    The questions we ask, the things we say, how we carry ourselves, all of that and more...
    We inadvertently tell each other and the customer, how long we have been in business.
    Straight up, there's nothing doing, just have to put in the time.

    So if the man asked you a question, give the man an answer.
    Discount or not, yes or no.

    Honestly I would give the man his discount but play it safe, stick to small percentages.
    Last edited: Feb 28, 2013
  4. sildoc

    sildoc LawnSite Silver Member
    Messages: 2,925

    I was thinking about this more last night. Thinking if it were me and my company not just someone I don't know.
    First off we have several prepay customers each January I get a big check for the whole year. Did I offer them a discount? No they still prepay cause it is easier for them. If they asked me for a discount would I? Yes probably up to 10% Maybe 15% but I would do this only knowing they fit into our route, and knowing they are great customers.
    Now if I had a prospective customer as for a prepay discount would I? Yes. It takes too many man hours to gain one account and the average cost per new account for us range from 40-70 dollars pending the year and approach.
    Thinking after the first year and the guy not being a PIA you will come out a head and possibly pick up more of his rentals or new customers from this guy.
    I know people that buy rentals and they usually just don't buy one, when they can they will buy another and so on and are usually in touch with people similar to them that own businesses and or rentals.
    This could be a good in, but keep in mind you still need to make a profit to stay in business and don't put all your eggs in one basket.
    Good luck.
  5. KnK

    KnK LawnSite Member
    Messages: 128

    I would be careful of the 26 cuts , cut 32 last season, saw a national company on a HOA down the road from my house on the 26 cut a year program, I saw them cut 8 inch grass 3 times and triple cut it once , I would not offer the discount and bill monthly, easier on both of you

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