I've been in business 10 years. I do not understand why I discounted my services in the beginning nor do I understand the concept of discounting now. If you can discount your services and still make a reasonable profit then your desired profit margin may be too large for your market. There is just as much work and it is not any easier with prepay and a discount. The only result I see is a degree of resentment while you are out working a job later in the year for less than you should. It has been my experience customers looking for these discounts have as much loyality as you can fit on a pin head. They are like rats jumping ship the next year if you don't offer it again. My philosophy on pricing has dramtically changed in the last two years. No matter how small your lawn I have a minimum to drop my gate. I don't care if it is a zero lot line with 2K of front lawn. It is still the minimum. Jobs up to 20K have a per KSFT price and it is what it is. Between 20K-42K they are either priced at the KSFT or equivalent hourly rate, which ever is more favorable to me. Above 42KSFT and they are priced at my hourly equivalent. By having a structured rate and not deviating from it I do not have to remember as many lies at night when I go to bed. Every new customer gets charged the same-no favorites. IMHO the only customers that deserve a discount are the loyal ones. Customers with a longevity of 3 years or more have their prices frozen until they are 8.25% below my current market prices. These are dollars I do not have to chase with the "free estimate". They come back year after year. If they discontinue their service even for one month to "check out the cheaper competition" they come back under the new customer price structure. When queried about the price increase I tell them upfront I reward customer loyality not lack thereof. Running the numbers reflect this to me. A 5% discount on 50K gross income is equivalent to 2.5K lost income, 10% is 5K. I don't know about the rest of you but I'm not willing to let that cash on the table. Look at from a different perspective. If you increase your price by 5% in terms of hard incoming dollars you can afford to lose 5% of your customers and still break even as compared to your old price structure. If you raised your prices would you lose more than 5 customer. Maybe but probably not if you're good at what your doing. Once a customer gets comfortable with a LCS they won't drop and take a chance on an unkown quanity. Use that to your advantage. Better to pay a buck fifty more per service to a guy you know is dependable with high quality and no headaches then go back to what they used to have. But going back to the beginning of this paragraph the 5% loss is actually misnomer. You can actually lose closer to 13% of the customer base when all factors are considered. You can now do 95 jobs in place of 100. Thats 5 stops eliminated, ~ 1 less hour of labor to pay for, by my mowing schedule that is 160 total annual services avoided or the equivalent of 5 years wear and tear on a mower. During the year you will replace those 5 jobs with 5 new ones at the new rate. Now you have increased you gross revenue by 5% and the labor is back where it was with your old prices before you increased your rate. Here are the hard numbers 100 jobs @$30.00 per job = $3K. 95 jobs @ $31.50 per job =$2992.5k less ~1 hour weekly labor, equipment wear and tear, and 5 extra stops per week 100 jobs @ $31.50 per job = $3150. You are now making $150.00 per week or by my mowing schedule $4.8k more a year and not expending any more labor as when you were charging $30.00. Maybe that much is chump change to everyone else but not to me. Another more extreme example is at the $25.00 rate which seems to be popular. 100 jobs @ $25.00 = $2.5K 83 jobs @ $30.00 = $2490 100 jobs @ $30.00 = $3K or an increase of 20% income with no extra labor or time as the first example. Would you lose 17 customers, I doubt it. Sometimes the answer to making more money is not increasing the customer base with discounts but rather an insignificant price increase to cull low profit margin customers and make room for new ones at a new price rate. I experience an average of 3-7% turnover each year depending on the economy and corporate relocates. However I force a minimum of 10% when I review my lower profit margin jobs. Also I keep myself in the 70th percentile as far as rates. For every 10 estimates I put out there I only expect to have three returned. When I start receiving 5 or more I edge up my prices by at least 5%. Work smarter, Work less, Make more money.