When do you offer discounts or "discounts"?

Question

In home services, it can feel like customers are always looking for a deal. But after years in the business, our approach is pretty simple: we don't discount.

Not because we're rigid — but because our pricing is already fair. We charge what the job is worth, and we stand behind that number.

The only times we'll budge:

If something goes wrong on our end — If we made a mistake or fell short, a discount is the right thing to do. It's not a handout, it's accountability.

If we have to reschedule — Life happens. If we're the ones pushing a job back, we think it's only fair to make that right for the customer.

Outside of those two situations? We hold firm. I've heard some people "discounting" on the invoice as a pricing strategy but it's not actually a discount.

When you discount freely, you train customers to always ask. You undervalue your work. And honestly, the customers who only show up when there's a deal aren't usually the ones you want long-term.

The right customers understand that quality costs what it costs.

What about you? Do you have a rule for when discounts are on the table, or do you play it by ear? Would love to hear how other home service businesses handle this.

crboyd07 · Answer

I was always told don't give your business away out of nowhere. I offer a few discounts one being military/first responder, and neighborhood discounts. But criteria has to be met! I've had countless people call and ask if I could do a one time service far cheaper that what it is and I had to stick to my bearing. I feels awful but the prices are what they are and there is a reason for it. Everyone's situation is different but for new business's it could be a killer. For my customers that I've had for years now I offer 10% on occasion for mess-ups or holidays that messed with the normal.

helixcraftworks · Answer

At Helix, my approach is pretty simple: I don’t mark up materials, and I usually pass supplier discounts straight through to the client when I get them. That includes my military discounts when they apply. Part of it is easier math, honestly. But more than that, it feels cleaner to me. It also helps build trust, especially with newer clients who may not know yet how you handle pricing, but they ALL have the internet, and can see what a 2x4 costs. That’s one area where I’m comfortable giving the client the benefit directly. If I can save money on materials, great. That should help the project, not become some little hidden margin goblin.

But my rate is my rate. The type of clients I want to attract are people who either value my time, or at least understand the value I place on it. My pricing reflects the prep, planning, problem-solving, finish quality, tools, insurance, communication, and all the invisible work that keeps a project from turning into a dumpster fire with crown molding.

If a client wants to bring the total down, I’d rather adjust scope, phase the work, change selections, or separate must-haves from nice-to-haves. I don’t like fake discounts where the same job magically costs less just because someone asked.

Friends and family are the exception, but even then it’s not really a “discount.” They just know they’re getting the lowest hourly rate I can reasonably spare without hurting the business.

Chris
helixcraftworks.com

helixcraftworks · Answer

One related benefit of this strategy is that when you quote the material allowance be a little high. There is nothing a client loves more than seeing that their final bill came in $10 under budget '-)

crchrista · Answer

We only discount if there was an issue that we are accountable for. But our estimates have lots of allotments and a contingency, so the final invoice tends to be lower than the original agreement regardless. When we get asked to lower our price, we work through what scopes we can deduct and some areas we recommend removing only. Change the offer, not the price.&nbsp;

turft · Answer

I'm moving away from discounts entirely, and the data backs it up. The clients who haggled hardest for a deal were consistently the first to leave the moment they found someone cheaper. Price was the main thing they cared about from day one, so it stayed the main thing.

I used to offer referral discounts to encourage word of mouth, and it worked in the sense that I got referrals — but I noticed something interesting. The clients I charged full price to, who stayed because of results, were also sending me referrals without me offering them anything. They were just happy and told people.

What I've landed on: discount for discounts and you attract people who want discounts. Deliver results at full price and you attract people who refer other people who care about results. The referral pipeline quality completely shifted once I stopped using price as the hook and let the work speak instead.

Forum Discussion

When do you offer discounts or "discounts"?

5 Replies