When do you offer discounts or "discounts"?
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 o...
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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
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 '-)