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Post by NS'Creter on Jul 14, 2008 17:45:10 GMT -4
Discounts. Who gives 'em, how much and for what? Seniors? Veterans? Volume?
A related topic may be charitable donations...I don't mean cash donations but does anybody ever offer work/products to be raffled for a cause?
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Lindy
Seasoned Concrete Veteran
Posts: 185
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Post by Lindy on Jul 15, 2008 12:11:29 GMT -4
IMO (5% to 8%) ...
** discounts warrented on projects over 5,000 sq.ft. in order to
remain competitive with others that may be bidding, or an
edge over you competition if they didn't offer one
** senior citizens discount (over 65), having minimum 1000 sq.ft.,
I like the good feeling that get as a result of doing so
** never thought about veterans discounts (but good idea)
** veterans? never thought about this before
Discounts on Federal Goverment jobs ...
** In the States the Federal Government (such as military base projects) are notorious about not paying within your terms. In order to get paid promptly, if you offer at least a 2% discount if paid within a certain period of time, they are mandated to pay within that period of time. If you don't offer a discount of at least 2% they will pay you when the get around to it which could be 30-60 days/or longer ...in other words they are not motivated or mandated to pay within your terms if there is no discount offered. Of course, you simply bid higher than you would on non-government job by 2%, then offer the 2% discount (which gets you paid within your terms), so it's a wash (you still net what you would on any other project.
Offering a discount, if paid within terms of contract/proposal on any commercial job, motivates prompt payment ... bid it 2%-5% higher, then discount it by the same percentage, equating to the same net profit margin. It's really just a mind game, but many corporations and commercial enities will always take advantage of discounts when offered; thus, you get paid promptly.
I sometimes do small (high profile) jobs for the City of Waco (my home base), for material and nominal labor only ... such as at city parks, since it is highly visible/great reference for people to go look at. This serves a evidence as to value/longevity/performance and motivates the City to have more work done on a larger scale at "full price" in the future.
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Post by NS'Creter on Jul 17, 2008 15:28:10 GMT -4
I need to look into that discount for prompt payment thing...maybe Canada has the same deal. 5-8% is the range I use for appropriate clients too. Our tax is 14% and some try to get a tax free discount but that can come back to bite me in the ass. I tell them that I can fiddle with the numbers and make it look like they're burnin' the government if it would make 'em feel better.
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