Do you give discounts?

[QDCC-Barry]

Do you give any discounts to your customers? Maybe a discount if they spend so much $ with you? Repeat customer? New Customer? Senior Citizen? Military? Free Rooms cleaned? Percentage off? Dollar amount off?

I've kinda always struggled with giving discounts. I've always tried to keep my prices as low as I can - so to give an additional amount off hurts. I have 2 different discounts that I have been giving almost from the beginning. "Pay for 4 rooms - get a hallway cleaned for 50% off." Also " Pay for 5 Rooms - get a 6th room FREE!" Additionally if someone has me clean an upholstery piece along with carpet cleaning I'll give them typically $10 off the piece. My minimum charge does 3 rooms - I never discount anything off that.

I've slowly raised my pricing over the last few years, in spite of the economy pretty much sucking around here. I'm not quite as busy as I want to be (I'm a 1 man band and want to stay that way) and I know I lose some jobs due to my prices, although I do fully understand that some people have an unrealistic expectation of what carpet cleaning should cost and I'd never be able to get to a low enough level to get there business, nor do I WANT that type of customer anyway. But realistic people I don't want to lose their business!

So I'm considering continuing with my 2 regular discounts mentioned above, but also throwing in an additional $20 off any customer that cleans at least once a year. I'd also start any brand new customer off with that same deal and telling them we'd like to extend the same deal to thank them for trying us. My thinking is that I'm feeling that I'm hitting my head on the top of the ceiling price wise and rather than lowering my prices, just give a discount and make it a marketing item to advertise. That will also eliminate me actually lowering my prices which I loathe to do!!

What do you all think about that? Any comments?

 

[hydracat]

I think the consensus in sales is don't charge less, give more value. I get more jobs in the winter by adding window cleaning in every room cleaned than I ever did dropping my prices. After 20 years of cleaning windows the extra time is minimal for me. Find some way to add value for a competitive price and they'll choose you over the competition.

 

[Desk Jockey]

I've always tried to keep my prices as low as I can - so to give an additional amount off hurts.

I don't think you can afford to give discounts. I think you either have to charge more (the hell with ceilings) or hold to your rates and market better to get new business.

I think we as owners are far more concerned with price than our clients. Now yes, you will have a few that bitch but the reality it everything goes up. You have to keep pace with, fuel, materials to provide service, repairs. I'd raise your rates slightly and spend a little more marketing and see how it turns out.

P.S. If I fook your business...it was all in the name of science.

 

[QDCC-Barry]

I don't think you can afford to give discounts. I think you either have to charge more (the hell with ceilings) or hold to your rates and market better to get new business.

I think we as owners are far more concerned with price than our clients. Now yes, you will have a few that bitch but the reality it everything goes up. You have to keep pace with, fuel, materials to provide service, repairs. I'd raise your rates slightly and spend a little more marketing and see how it turns out.

P.S. If I fook your business...it was all in the name of science.

I get your point. The fact is I'm far from one of the cheapest cleaners in this area, in fact I'm most likely in the more expensive bracket of cleaners around here. Some of these guys are charging nearly the same prices that they were back in 1994 when I got into the carpet cleaning biz. I'm at least double from many of them. I refuse to go anywhere near those pricing points.

 

[Desk Jockey]

I just think those that are going to complain on price are going to do so not matter what price you charge.
I also feel that you could grab some of your competition's market share with a little more marketing. Just a little from each, we don't want to be greedy!

Your clients know of you but do the competition's clients know about you? Are you actively seeking more business?

You do a great job of cleaning (so you tell me ), you shouldn't discount it. Introductory offers are good but I personally hate when I'm already a client and I don't get them. What about referral rewards? They get something for giving you new clients?

 

[jcooper]

Do you give any discounts to your customers? Maybe a discount if they spend so much $ with you? Repeat customer? New Customer? Senior Citizen? Military? Free Rooms cleaned? Percentage off? Dollar amount off?
I've kinda always struggled with giving discounts. I've always tried to keep my prices as low as I can - so to give an additional amount off hurts. I have 2 different discounts that I have been giving almost from the beginning. "Pay for 4 rooms - get a hallway cleaned for 50% off." Also " Pay for 5 Rooms - get a 6th room FREE!" Additionally if someone has me clean an upholstery piece along with carpet cleaning I'll give them typically $10 off the piece. My minimum charge does 3 rooms - I never discount anything off that.
I've slowly raised my pricing over the last few years, in spite of the economy pretty much sucking around here. I'm not quite as busy as I want to be (I'm a 1 man band and want to stay that way) and I know I lose some jobs due to my prices, although I do fully understand that some people have an unrealistic expectation of what carpet cleaning should cost and I'd never be able to get to a low enough level to get there business, nor do I WANT that type of customer anyway. But realistic people I don't want to lose their business!
So I'm considering continuing with my 2 regular discounts mentioned above, but also throwing in an additional $20 off any customer that cleans at least once a year. I'd also start any brand new customer off with that same deal and telling them we'd like to extend the same deal to thank them for trying us. My thinking is that I'm feeling that I'm hitting my head on the top of the ceiling price wise and rather than lowering my prices, just give a discount and make it a marketing item to advertise. That will also eliminate me actually lowering my prices which I loathe to do!!
What do you all think about that? Any comments?

We do and we don't...

We don't have a set discount - clean this get that off, free this with that, buy this and that is cleaned free, etc.... IMO, if the work is good, that should be reason enough to use you. Not discounts or special deals,

Although, at the same time people are stupid, some think they NEED a deal or it's not worth it whatever the product. Even though the deal might actually end up costing more.


We will however give discounts for "personal" stuff.

Maybe a couple of seniors spent the last three days moving everything it the house off the carpet. Heck yea, I'm going to try and "help them out" a little.

If Mr Smith expects to pay 250$(our phone estimate) and I think it's to much after doing the job, Yes I will help them out. I enjoy telling them, "have a pizza tonight, on me".

Any discount and how much is up to me. Decided on at the job.

 

[QDCC-Barry]

You do a great job of cleaning (so you tell me ), you shouldn't discount it.

I am, I am...I swear!!

 

[hogjowl]

Just thinking about discounts pisses me off.

 

[ruff]

I give discounts.

• Anybody that refers a friend (if I actually do the job) will get either $25.00 or 10% of the total their referral spent with me (whichever is greater) off their bill.
• 10% off, if done in less than a year.
• 10% off, for an empty place.

The last two I don't lately, as I am busier than hack.

Anybody that wants a GroupOn, Living Social, etc. deal and or asks if I'm cheaper than, or will I beat so & so's price.... gets 20% extra charge. The real Value Added Tax.- My humble contribution to the natural selection process

 

[WillS]

New Customer Discounts:

The only discount we do for new customers is Active Military/Veteran/Police - they receive 10% off.

Return Customer Discounts:

10% off any service for return customers.

We let return customers also earn "NaturalDry Service Credits" including:

- $20 Service Credit for every referral. There is no max amount of credits you can earn, and you can use these with no min. Our MIN. to service any home is $120, so if you have referred 6 people and earned $120 in service credits and you only want 3 rooms cleaned (which would be $120) we will come out and clean those 3 rooms free.

- $20 for online review (max 1 credit). So they can earn $20 only once, even if they review us on every single review site.

Cool thing with the Service Credits - customers are beginning to track the credits they earn by signing up for an online account with us. (This is through the FittleBug app). Once they earn a credit, it gets applied onto their account, they can keep track of them by logging in and even if they book online they can click to apply those credits. This is my major goal this year is to keep pushing for our customers to sign up for our online account to view past/future appts. credits, etc.

Bundling Discounts:

If a customer bundles carpet, upholstery, tile, rugs, etc. we usually do $20 to $40 off the overall bill.

Note about Military Discount/Return Customer 10% Discount:

The customer will either receive the 10% for return or military, but we do not combine these and offer 20% off.

BTW: When you file your taxes, make sure you are keeping track of the discounts you give, these are deductible.

 

[Old Coastie]

Good stuff, Wills and Ofer.

I give 10% Angies List or for referral from an existing customer. I like to do a little something extra like an area rug or two, love that idea of windows.

Active duty gets 25% off or if spouse/child is deployed to the sandbox, or the customer was wounded I dadgum walk away from the bill if the mood hits me.

One special forces guy had us do move-in and he was getting deployed in a couple weeks. His (Ranger) dad was there helping unpack and we swapped tall tales a bit.
Walked on that bill, told the dude to go make a memory instead that weekend.

Wife burst into tears... Young military couples have it tough and for some reason highway 431 was kinda blurry for two hours heading home.

 

[Barry-QDCC]

New Customer Discounts:
BTW: When you file your taxes, make sure you are keeping track of the discounts you give, these are deductible.

I like a lot of your suggestions but I'm not so sure you are correct about deducting discounts from your taxes. Before anyone does that I'd run that one by your tax guy.

 

[Mikey P]

Annual 20% off all of February for repeats.

This year bit us in the ass as we were slammed with out the offer.

Barring an El Nino winter, we 'll probably skip it for the 1st time in 16

 

[Shane Deubell]

Probably need to invest in advertising for a couple years. More opportunities gives you more flexibility.

 

[GreenTechAgain]

Oh, no, NEVER!

Of course I do. If I'm there for a 3 room carpet cleaning minimum and I can add in a $175 tile kitchen clean and seal for $125 - damn straight I will.

Another 45 minutes and I will more than double the original ticket, no problem.

I'll explain why I can give them a discount, I'm already there set up. I'll write the invoice for the full amount and then apply the discount amount.

 

[WillS]

I like a lot of your suggestions but I'm not so sure you are correct about deducting discounts from your taxes. Before anyone does that I'd run that one by your tax guy.

Thanks Barry! We have used 2 seperate accountants for our business and not just the work out of your home accountants - and for the last 3 years each has had us track discounts given off the original price of the service and those were applied. But yes, definitley I would check with your own accountant, because we are an S-Corp LLC and not sole or partnership setup. So it could vary. But it is a great write off!

 

[PrimaDonna]

Introductory offers are good but I personally hate when I'm already a client and I don't get them.

I just got off the phone with our internet/cable provider. Our rate went up. Asked them to do better for me. It usually works. They said no. I had their website up and saw the same plan we had for significantly less. Was told that is for "new" customers only. I asked if there was anything they would offer me, a loyal 10+ year customer, over a new person and again was told no. I said I'd take my business to the competitor since their "new" customer rates were even better. She told me, very snarky, "They are just going to go back up when their promo is over". And I said, then I'll call them and get a discount, or switch back to you and get your new customer discount. She said, ok, I understand. and that was that. First time that ever happened. I always am able to call and get them to do something. That pissed me off. I'll call back in a few days and get a different customer rep to see where I can get.

Barring an El Nino winter, we 'll probably skip it for the 1st time in 16

Get ready for the back lash. If you've been doing that for 16 years and suddenly stop....Ouch! At least send them out a nice email via SM telling them you're not planning to offer it this year (and maybe a rational as to why) so they can plan accordingly. I'm sure many wait or budget based on that 20% off, and if it's suddenly not there it will upset them. They need to know so they can put the extra $ aside, or plan on doing it at a different time. People hate change as it is...and when it comes with no warning.....even worse.

We offer a reward referral program (10% of job for new client). At times (slow months/winter) we offer a promo to our existing clients. We will make on the spot decisions to discount by 10% if it means we will get additional work or add ons. If a customer is on the fence or contemplating about having us come back at another time to do the additional work, we offer them the "we are here now and won't have to make a second trip so we can offer you 10%". But, we don't do that if it's referral and we are already giving someone the 10% kick back.

 

[QDCC-Barry]

I just got off the phone with our internet/cable provider. Our rate went up. Asked them to do better for me. It usually works. They said no. I had their website up and saw the same plan we had for significantly less. Was told that is for "new" customers only. I asked if there was anything they would offer me, a loyal 10+ year customer, over a new person and again was told no. I said I'd take my business to the competitor since their "new" customer rates were even better. She told me, very snarky, "They are just going to go back up when their promo is over". And I said, then I'll call them and get a discount, or switch back to you and get your new customer discount. She said, ok, I understand. and that was that. First time that ever happened. I always am able to call and get them to do something. That pissed me off. I'll call back in a few days and get a different customer rep to see where I can get.

I've been a Verizon customer for many, many years -15+. For just my cell phone my bill was running $130+ a month. We went into a Verizon store for another reason and I mentioned to the sales person I was ticked my bill was so high. She said I'll see what I can do for you, she looked at my account and said, I can give you the valued customer rate - $60 a month!! And all with the same minutes, texts, and data!

Sometimes all you do have to do is ask - and sometimes it does work!

 

[jcooper]

I've been a Verizon customer for many, many years -15+. For just my cell phone my bill was running $130+ a month. We went into a Verizon store for another reason and I mentioned to the sales person I was ticked my bill was so high. She said I'll see what I can do for you, she looked at my account and said, I can give you the valued customer rate - $60 a month!! And all with the same minutes, texts, and data!

Nice thing about that deal, Verizon actually works.

 

[QDCC-Barry]

Probably need to invest in advertising for a couple years. More opportunities gives you more flexibility.

This is probably the route I need/will take. Like someone else said, I hate discounting my services.

This question was originally meant to mean, "What discounts do you advertise?" Not discounts that you randomly give out to people who add on stuff while you are there or ones you might or might NOT give to a customer because you like/dislike the person.

Honestly I spend very little on advertising each month. I mean hardly anything at all, $300 or so a month and that includes my website/SEO guy. (And the SEO guys really wants me to spend more with him - but I'm holding him to a low budget.) The rest goes to my postcard reminder mail outs. Traditional advertising I'm not doing any of at all. In spite of not spending much I'm still doing 60-70% of what I want to do in sales each month. Really only need to average 1 more job a day. So if I could find a good avenue to advertise with that's what I really need to do.

 

[jcooper]

"What discounts do you advertise?"

None

The rest goes to my postcard reminder mail outs.

Are you doing them yourself? A service?
That's one thing I need to do, set up some type of system for reminders... ugggggg.

 

[QDCC-Barry]

yeah, I do them myself...I'm a cheapskate and refuse to pay the FMS prices on Service monster. I get the cards made by Vistaprint. Get them on sale and you'll pay less than .10 per card. I print a before/after full color picture on the front to get attention. Message is on the back with the .35 cent stamp and label printed from Service monster. So I got around .46 per card invested.

Every month I send to 6/12/18/24/30/36/42/48/54/60 month "since your last service" customers. You have to set up a marketing campaign in Service monster to print out each set of labels. takes a bit of brainwork to set up and the first time it took me about 2 hours to figure it out and print out all the labels. Now I got it down to maybe 20-30 minutes then whatever time it takes to stick on the stamps and labels. I've done it faithfully each month now for 9 straight months and I do see return customer jobs come in because of them. Many customer have mentioned they like the reminder.

 

[WillS]

I've been doing the Vistaprint reminder cards on my own ever since we opened. With so much other stuff going on now I just run behind on it. So willing to pay the FillMySchedule costs just for the convienence of not having to run reports, print labels, put on labels, stamps, etc.

 

[Mikey P]

Get ready for the back lash. If you've been doing that for 16 years and suddenly stop....Ouch! At least send them out a nice email via SM telling them you're not planning to offer it this year (and maybe a rational as to why) so they can plan accordingly. I'm sure many wait or budget based on that 20% off, and if it's suddenly not there it will upset them. They need to know so they can put the extra $ aside, or plan on doing it at a different time. People hate change as it is...and when it comes with no warning.....even worse.

I bet I could figure out how to only send to past discounters....

 

[Shane Deubell]

This is probably the route I need/will take. Like someone else said, I hate discounting my services.

This question was originally meant to mean, "What discounts do you advertise?" Not discounts that you randomly give out to people who add on stuff while you are there or ones you might or might NOT give to a customer because you like/dislike the person.

Honestly I spend very little on advertising each month. I mean hardly anything at all, $300 or so a month and that includes my website/SEO guy. (And the SEO guys really wants me to spend more with him - but I'm holding him to a low budget.) The rest goes to my postcard reminder mail outs. Traditional advertising I'm not doing any of at all. In spite of not spending much I'm still doing 60-70% of what I want to do in sales each month. Really only need to average 1 more job a day. So if I could find a good avenue to advertise with that's what I really need to do.

Cant tell you what to advertise in...

Can say that 10 more calls a week gives you options. Breathing room to raise prices, offer specials, whatever you choose.

 

[Desk Jockey]

It looks like most of your attention is on your data base. Great move, mining them BUT they move and die off and so you need something more aggressive than SEO for attracting new clients.

Pick the neighborhoods you are doing business in or want to do business in and spend $100.00-$200.00 a month on some professional EDDM cards. Do it for 6-months and evaluate your results. You don't have to spend a ton of money but you shouldn't overlook adding new clients either.