Discount or not!

Ron Musgraves

Ron Musgraves

Exterior Restoration Specialist
Staff member
Discount or not!

This is a little thread that came up over on TGS.

I want to extend my opinion here with some deeper reasons of why its not right to just have a structure set pricing.


A post on this BBS made me realize that it’s not about the discount it about making more money.

It’s not about charging less but charging more frequent and making more revenue.

Keeping a store or business cleaned more often is better for both the customer and you.

This is the thread @ TGS http://www.thegrimescene.com/forums/flatwork-buildings/9319-discount-not.html
 
This is a tough one to call. It depends on the circumstances. If its a small job then it can never go below what your minimum charge would be. Another words if the store is only a $150 service and now they want it done more often then I would never go below that price which is my minimum.

If its a large store that has lets say a price tag of $900(This is what I get paid for one of my commercial accounts that I do monthly) and now they wanted it done 2x/month I would consider discounting that price a little but if they didnt ask for it I may just keep it the standard $900(I've been getting that price for at least 4-5 yrs now with this one store).

I would need some more details to decide on what direction I would take.
 
That store only takes two hours to do but its an hour to get there and an hour back and its in the heart of Manhattan with hundreds of people walking around on the jobsite. If the PM asked me two adjust my price some for more frequent cleanings I most likely would but if they didnt ask then I would try to keep the price status quo if at all possible.
 
No Discount for same scope of work. Our rate is our rate. If the scope takes xx hours, then it is xx dollars. If the more frequent cleaning takes less hours, then it is less dollars. It is less on invoice for customer, but it isn't a discount per se'.

The promise of more volume isn't a valid reason to lower your price. Every hour of every day is worth the same. If I am at $200/hr on house washes, why would I sell those same hours to clean a drive-thru at a bank for less just because I do them every month. This is where I have seen companies here locally dropping thier pants all in the name of regular, steady income. GO GET A JOB if they want security of a paycheck each week. I know of one outfit that works 4 times more volume than I, but I am profiting more. My salary is more than thier owner. All they have accomplished is lowering the prices for flatwork here. They aren't making more money, just working more.
 
FCPWLLC said:
No Discount for same scope of work. Our rate is our rate. If the scope takes xx hours, then it is xx dollars. If the more frequent cleaning takes less hours, then it is less dollars. It is less on invoice for customer, but it isn't a discount per se'.

The promise of more volume isn't a valid reason to lower your price. Every hour of every day is worth the same. If I am at $200/hr on house washes, why would I sell those same hours to clean a drive-thru at a bank for less just because I do them every month. This is where I have seen companies here locally dropping thier pants all in the name of regular, steady income. GO GET A JOB if they want security of a paycheck each week. I know of one outfit that works 4 times more volume than I, but I am profiting more. My salary is more than thier owner. All they have accomplished is lowering the prices for flatwork here. They aren't making more money, just working more.
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good pro answer
 
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