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Ive done two full bath remodels for this guy and he wants me to do his last bath. Im wondering what percentage of a discount I should give.
Anyone ever been in the same predicament? I know I will get the job but I want to be fair with this guy(and to myself). Im guessing 10-15%. I know the economy sucks(hes trying to put money in my pocket)hes a former teacher in Jr.High,(a long time ago), so whats fair? Is 10-15% acceptable?
I know my numbers,cant make them with a discount, but have nothing else on the sidelines. No he isnt asking for a discount, I feel I owe it to him. Anyone ever been in this situation?
 

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Remodeling Professionals
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Work part of the 10-15% discount into the price, then put a "repeat customer" line item discount on the invoice at the end. That way you're only discounting approx. 5%.
 

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Don't discount, just throw a little something extra in for free. That would make him even happier.
This could be fixing something else in the house, upgrading something, adding in a nice picture. You're getting the work at a time you NEED to keep up the cash flow. I like Warner's suggestion.
 

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Curmudgeon
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Yeah, give him some extra tile work,
or up grade fixtures......
 

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Every customer I've ever discounted never even really noticed, even when I pointed it out - it's like "oh, well, ok, thanks". Or, they thought they were owed it anyway.

But, if you give them a freebie, it's the best thing since sliced bread.

Of course, if you give them a discount along the lines of 50% off, that's a different story. But who can afford that?

I have a terriyaki restaurant I go to - they give everyone a free pot-sticker. I thought the first couple of times it was because I was in the right spot at the right time, but having now gone back a few times, I realize everyone always gets one. But it was a good hook that made me very happy and probably got me to come back a few times.
 

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Fentoozler
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Im wondering what percentage of a discount I should give.


Im guessing 10-15%.
What are you going to discount?
The entire job?
Your mark-up on material?
Your labor?


You need to think a little deeper than "10-15%" before pouring out comments like this:
So basically just lie? That's a great way to do business.
 

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Fentoozler
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I have a terriyaki restaurant I go to - they give everyone a free pot-sticker. I thought the first couple of times it was because I was in the right spot at the right time, but having now gone back a few times, I realize everyone always gets one. But it was a good hook that made me very happy and probably got me to come back a few times.
Was it really "free"?
:whistling
 

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Yes, I thought it would be understood that the 10-15% is just an arbitrary number. I couldn't use that on the 80k deck job we just finished, for a repeat customer, unless it was 10-15% of the post cap cost.


What are you going to discount?
The entire job?
Your mark-up on material?
Your labor?


You need to think a little deeper than "10-15%" before pouring out comments like this:
 

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why do you have to offer a discount in the first place?
 
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Builder/Remodeler
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Ive done two full bath remodels for this guy and he wants me to do his last bath. Im wondering what percentage of a discount I should give.
Anyone ever been in the same predicament? I know I will get the job but I want to be fair with this guy(and to myself). Im guessing 10-15%. I know the economy sucks(hes trying to put money in my pocket)hes a former teacher in Jr.High,(a long time ago), so whats fair? Is 10-15% acceptable?
I know my numbers,cant make them with a discount, but have nothing else on the sidelines. No he isnt asking for a discount, I feel I owe it to him. Anyone ever been in this situation?
Charles,

Much of my work is for repeat customers. We've worked in a particular house for over 5 years and 7+ phases. Building a long term relationship with a client is comfortable for both of you. The client knows what to expect from you and you know what to expect from them.

It can make sense to discount an additional bath if it's being added to another project being done at the same time. You're already there, you're already doing similar work--so the economies make sense.

If this is a new project, why feel obligated to give a discount? The fact that they want you to do an additional bath means they like your work--and they like the value they've already enjoyed from your other two projects.

If I eat at a nice restaurant, and enjoy the experience, I'm not going to expect to spend less the next time I go. What I will expect, and what brings me back, is the same level of service and experience I enjoyed the last time.

It's certainly not the time to gouge them--and many guys would be tempted to if they felt a client was somehow obligated to continue using them. But it's also not the time to charge less for the value you're delivering.
 

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Ha, they call it creative accounting, why can't we? Seriously, lighten up holmes, just a suggestion.
I guess I mis-read it. I guess you weren't suggesting to raise various line items so that the "discount" line item winds up being less than it appears. My bad.

"Creative accounting" is a way to hide things, a form of deception. It goes on all the time, has gone on for years, will continue to be used. Oh, and creative accounting is what caused Enron to fold. It is has caused all kinds of financial problems. It is one of the causes of the recession we are in now. I will now lighten up about what looks like people trying to deceive others, whether it's legal or not.
 

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i agree on doing something extra. i know im not the only one here who hates it when you get a gift card or something of that nature when its christmas/birthday or whatever holiday. i myself am very grateful for those thoughtful small things in life. im sure there's something in his house that you went "hm that could be fixed". he'll definitely appreciate that you were thinking about him, vs just the "heres a discount".
 

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The fact that you are there doing the work for them and they are lucky to have you instead of somebody else should be bonus enough for them.

They already have the best money can buy doing the work, isn't that what they wanted in the first place? If all they wanted was somebody to work cheaper they would have hired somebody else instead of you.

Enjoy the relationship of a good customer, do a great job for them, get paid, feel good about it all.
 

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all customers are different,i think the key is to find out what important to them
discounts,extra work,or upgraded material,whatever
find out what is most important to them
 

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No discounts period, times are tough and money's tight bid the job and bid it right!:thumbsup:
 

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A nice bottle of wine with a Thank You card.
It shows you appreciate the business and will only cost $20.00 or so.
If you feel you can afford it, a gift certificate to a local restaurant.
There is nothing wrong with showing your appretiation.
It is also good PR.
 

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Paul
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Ive done two full bath remodels for this guy and he wants me to do his last bath. Im wondering what percentage of a discount I should give.
Anyone ever been in the same predicament? I know I will get the job but I want to be fair with this guy(and to myself). Im guessing 10-15%. I know the economy sucks(hes trying to put money in my pocket)hes a former teacher in Jr.High,(a long time ago), so whats fair? Is 10-15% acceptable?
I know my numbers,cant make them with a discount, but have nothing else on the sidelines. No he isnt asking for a discount, I feel I owe it to him. Anyone ever been in this situation?
There's your answer right there. Why do the job if it's not profitable?? Especially in these economic conditions.
 
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