Discounts ?????

[Chuck White]

Any of you sawyers, mobile or stationary give a little discount to repeat customers?

I've been thinking of starting to do that next Spring, especially since my mill is now 100% paid off. 

I have some customers (larger jobs) that I've sawn for now for 5 years and was thinking of doing this more or less to show my appreciation for getting their business.

[ohsoloco]

I don't give discounts, but I have been known to saw up some stickers or whatnot from some old logs for free for a regular customer just to get rid of the logs.

[terrifictimbersllc]

When it comes to efficient sawing time and at your 15cents it would be hard to imagine charging less.   Maybe raise your rates sometime for new customers and keep the old ones the same.  Hard to raise rates for familiar customers and a bonus to them not to.

I charge hourly and usually find some way to throw in something like not counting all the time I could for non-sawing but chargeable work.  For example I just stepped in the house from resawing a bunch of 8x8's and 6x6's into 1x and 2x lumber for a customer 40 miles away who changed his plan for these beams cut on 2 separate jobs earlier.  I was there 3.5 hours total and 2-1/4 hrs was flat out sawing.  These were very accurately sawn beams which he had already paid me a decent amount for.  So overall today I charged for mileage and 1-1/2 hrs.  I want him back and would have felt bad if he had paid more today.  Another time my customer wasn't helping with the work, off to another site,  and came back up over an hour after I was packed up and ready to leave.  Not going to charge him for that because I want him back and it only cost me my time.   Other times do the same not counting all of log moving, end sealing, etc etc especially when it is an easy day with time to spare. 

[woodmills1]

I charge 70 per hr to new customers or those I think are one timers

I lower to 50 for repeat or those I think will be repeat

I also give extra boards to my best customers

added 12 fence boards to the order for 298 1x6x16

added 6 4x to the last dunnage order

what ever comes out of the last log over the order I give them no charge

[ladylake]

When it comes to efficient sawing time and at your 15cents it would be hard to imagine charging less.   Maybe raise your rates sometime for new customers and keep the old ones the same.  Hard to raise rates for familiar customers and a bonus to them not to.

I charge hourly and usually find some way to throw in something like not counting all the time I could for non-sawing but chargeable work.  For example I just stepped in the house from resawing a bunch of 8x8's and 6x6's into 1x and 2x lumber for a customer 40 miles away who changed his plan for these beams cut on 2 separate jobs earlier.  I was there 3.5 hours total and 2-1/4 hrs was flat out sawing.  These were very accurately sawn beams which he had already paid me a decent amount for.  So overall today I charged for mileage and 1-1/2 hrs.  I want him back and would have felt bad if he had paid more today.  Another time my customer wasn't helping with the work, off to another site,  and came back up over an hour after I was packed up and ready to leave.  Not going to charge him for that because I want him back and it only cost me my time.   Other times do the same not counting all of log moving, end sealing, etc etc especially when it is an easy day with time to spare. 

I agree your already plenty cheap, charge more for new ones. The Amish around here charge .15 and make a lot of sawdust out of your logs.   Steve

[Chuck White]

Makes sense!  Thanks for your inputs!

Just a little "extra" sawing here and there would probably be appreciated by some of the long-term customers.

Also, raising my rate 5¢-10¢ would probably be in order too!

[Cedarman]

I have never given discounts unless we have messed up.  My price schedule is pretty much in concrete.  If the customer lightens up on specs we can charge a little less.  I turn business away.   Discounting means you are charging too much to begin with.

[Magicman]

No way.  Absolutely not.  I always establish a "cull" pile and boards with too much wane, etc go there.  I saw stickers from that pile and from edging.  I never charge for stickers.

I charge everyone the same.  Just supposed that two of my customers talked to each other and one found out the the other was being charged differently.  That's a recipe for disaster.

My price has remained the same since January, 2010.  I may need to bump it up 10¢ if fuel goes up.

[redbeard]

Stick with your business plan once you start offering discounts next year you will find yourself discounting the discounts.   

[Cedarman]

MM, you hit the nail on the head.  People talk to each other.  What is your response to someone who says, "You gave Joe a discount, but you didn't give me one last time.  How come?"

[northwoods1]

I don't really give discounts but have to admit I did give a quote this morning to a fellow this morning and said I would provide a 10% discount. He was the head of maintence for one of the local school districts and needed some cedar timbers to set into the ground for there track and field area. I know I am cheaper than all the big box stores and lumber yards already but I still offered a discount anyway. Not sure why I hated school ;D!

[Magicman]

I have sawed several "charitable" jobs, but I insure that the local newspaper is notified and a photographer is on hand to record the event.  You will be repaid many times over for that type of advertising.

[paul case]

i wouldnt discount the price per board ft. but there is nothing wrong with discounting the count. 
as a custom sawyer you want every customer to go away with a feeling that they got a good deal. pc

[LeeB]

I 'discount' all the time. Usually only amounts to a few bucks. I tend to charge a little more than the going rate for the area, so even with the slight discount, I still end up with more than the other guys are charging. It ain't hurting my bottom line and the customer feels he's getting a good deal. I call it creative billing.

[Brucer]

I used to give contractors a 10% discount. I figured they were more likely to know exactly what they wanted and wouldn't waste as much of my time. So I wanted to give them a slight advantage over Joe Blow off the street. Bad idea.

I discovered that:
1) All homeowners pay promptly. Some contractors figure it's OK to wait until they've been paid for the job.
2) Some contractors make it up as they go along and want to change their order every 3 days. These guys are worse than many homeowners.

So, new rule: Everyone pays the same, all the time. I have one standard price list and it applies to everyone.

If someone miscuts a timber and needs a replacement, I'll usually give them a break on the replacement (if it was part of a large order). And I will discount wood that has been sitting in the yard too long. But that's it.

[Chuck White]

i wouldnt discount the price per board ft. but there is nothing wrong with discounting the count. 
as a custom sawyer you want every customer to go away with a feeling that they got a good deal. pc

Paul, I pretty-much do this all the time.

Especially when I get something that the customer didn't ask for in his/her cut list.

For example, when a customer asks for random width 1" boards I will usually try to get 6, 8, 10, 12,14 inch etc., well, sometimes I'll get a stack of 4" (usually out of edged fletchings) and I won't charge for them.   Along with this, if I only get 4 or 5 really wide boards, I sometimes won't charge for them either.  Same goes for 2" stuff.  If the order didn't call for 2x4's and I get some while trimming 2x10's to get 6s I don't charge.

I always have a "cull pile", same as MagicMan and that is also "free gratice".

So, all-in-all, I guess I do give a discount. ;)

[red oaks lumber]

i charge everyone the same... where the discount comes in is, by just knowing me! by this i mean if you have a question call, it might be how much should i pay for someones lumber pile  or stop by asking if this wood is still sound ect. let me decide how much free time i spend with people, i guess it's called p.r.
we all have places that we feel real comfortable either calling or stopping for advice or just chewing the fat with.

[rjboll]

I have started sawing 100 Bd. Ft. for free for return customers and customers that send business to us. I have found that about 50% of our work comes from referrals. I figure the 100 Bd Ft. costs less that advertising.

[Chuck White]

rjboll, that's a good idea.

A little "free stuff" would go a long way.

[Brucer]

As I said, I don't give discounts.

I'm just completing a $50,000 sawing order for a couple building their retirement home. If I had offered them a 5% discount that would have been $2500 directly out of my pocket.

Yesterday the couple came along with their truck driver to pick up another load. After the truck was loaded, the guys left to deliver it to their fabricating site. The wife stayed behind and I coached her as she sawed a 12' post for their new home. Mary, my helper, took some pictures as the owner was sawing -- I was careful to fade into the background when the pictures were being taken. When the timber was finished, Mary had the owner lean on it while it was sitting on the mill and got a nice "trophy shot".

The owner left with a huge grin on her face and a story to tell. All the timbers on this job have ID numbers so we know exactly where that particular timber is going to be in the building. She'll be able to point it out to their guests and proudly tell them she sawed it -- with pictures to prove it.

I'm sure that experience was worth far more to her than a $2500 discount.

You only enjoy a discount once, but a pleasant experience and a story to tell will keep giving pleasure for years to come.

[weisyboy]

only time i give a discount is for cash, or if i bugger something up.

[Slingshot]

                 "WE USTA' GIVE THE BIGGEST DISCOUNTS IN TOWN"  8) 8) 8)

       







  ________________________----
Charles





     

[JPM]

why would you even think of a discount? your making a more or less custom product ie; local tree cutting,custom cutting,ect. an extra freebee to good customer is ok but your cutting is X dollars period.if you start the discount game all you do is work for less and someone will always sell it for less. the old i only lose a little on every piece but i make it up in volume