Episode 14: Discount Daily Dog Walks

In this episode of "Bella In Your Business", Bella discusses whether or not you should offer a discount daily dog walks. She covers points on both sides of the issue.   Bella starts by stressing that before even considering a discount for daily dog walks, you really should know just how much profit you make off of a dog walk or pet visit. She points out that many company owners aren’t fully cognizant of that number or even understand how the costs and profits are divided. Bella points out that some of the money goes to the employee who walked the dog (usually a fixed amount) and some of that money should go to your business to cover expenses and business profit.  Finally, some money needs to go directly to you the owner, so that you are paying your salary. Can You Even Afford it? When offering a discount on a daily dog walk you have to decide out of which of these pots that discount will be taken.  You can’t really pay your employee less, so it will need to come out of either your pot or the business'.  If your business has stabilized costs, you may be able to find some money in the business pot to support the discount.  But if you are in a period of steadily increasing expenses, then you may not have it there.  Bella advises you to be careful about taking discounts out of your own pot as many business owners hurt themselves by not paying themselves enough to sustain themselves, and the business. Discounting Can Be Good! On the pro-discount side, Bella talks about how even "rich people" like discounts and you should not be offended if someone asks you to discount daily dog walks.   She even suggests that you set a higher “standard” rate and that the “discount” you offer be actually in the range of what you need to keep the business growing.  This could also be couched as a “Friends and Family” discount, or be given through package plans that encourage clients to use your services more often. When You Should Never Discount On the anti-discount side, Bella suggests that discounts on daily dog walks are not likely appropriate if your rates are currently low, especially if they barely cover costs.  In those cases, it is best to gradually increase your rates to a level where you can offer discounts. Transcript: Episode 14, Bella in Your Business. Welcome to Bella in Your Business, where Bella will discuss anything and everything about your pet sitting business to help you land on target. So get ready—Bella's got your shoot. Let's jump! Hello and thanks for listening to Bella in Your Business, where each episode we pick a topic and discuss how it affects your pet business. To keep up to date on all our current and past episodes, please be sure to click the subscribe button. Pressing this button will bring you the latest episodes straight to your device as they're published. I also want to invite you to join my personal Facebook group. Here you'll find tips, tricks, and free advice for your pet business. Just search “Jumper’s Network” in the Facebook search box. Today our topic is, “Should I offer daily dog walking packages?” I love this question, and today we're actually going to look on both sides—the yes side and the no side. But before we do that, I want to ask you, do you know how much profit you make off of every single dog walk? I bet you can tell me exactly how much you pay someone, but how much do you pay the business? How much do you pay yourself? How much money do you actually have to discount? And when you do discount, does it come out of the business or does it come out of your pocket? These are very important calculations to know because this will help you make educated decisions. I do not believe in just saying no to discounting. The only way I ever believe in saying no to discounting is if your prices are already rock bottom and you have no idea what your profit margin is. And I hate to say it, but a lot of pet sitters who start off their first couple years don’t know. Heck, I was even one of them. I know many of you listening who know me and have heard many of my stories probably can’t believe that I first started off charging only $15 a pet visit. Sure, that was back in 2002, 2003, or 2004, but still, $15 per pet visit was pretty cheap. My mentor at the time challenged me to start offering $20, and I did. People said yes. You could only imagine my shock and awe and amazement when people were saying yes just as easily as they said when it was $15. This is not a podcast to tell you to raise your rates. It's simply to know your numbers. Let’s look on the “no” side—the reasons why you would not discount in your business. We’ve heard them all everywhere. Some business owners get on this high horse and say, “My business is worth the money. I can’t believe you asked for a discount. How dare you? That’s insulting.” They take it personally. I want to remind anyone listening today that this is business—it’s not personal. You can’t take it as a personal threat when someone asks you for a discount. Even the richest people stay rich by being frugal, by asking for discounts. You might be like me, one of those people who, every time you go to Kohl’s or Ulta, asks the cashier, “Hey, do you have any coupons behind the counter?” You never know until you try. Some people, no matter what, will always ask. So I encourage you—don’t take it personally. Another reason you could say no to discounts is because your expenses don’t change. If your expenses don’t change, then where is that discount going to come from? If, say, the pet sitter gets $4, the business gets $3, and you get $3, but you discount 50 cents off the dog walk—where is that 50 cents coming from? You’re not going to pay your person less, and you still need money for the business. Your business expenses don’t change while you’re growing; they grow and grow and eventually level off, but they remain fairly predictable. We’re lucky we don’t have shipping, inventory, or retail costs. After some time, your expenses get to be regular. So I’d say no to discounting if you can’t change how much you pay your sitters, your expenses are fixed, or your prices are already tight. Some sitters even cut into their own pay, but I don’t recommend that—you won’t get ahead that way. You could also say no because discounting isn’t part of your marketing strategy. You could say, “I don’t discount for anyone. The price is the price.” You can frame that positively: “One price, full service—everyone gets the same rate.” It’s fair, simple, and confident. Maybe you don’t discount, but you offer a “friends and family” rate. Words are powerful. “Discount” sounds cheap, like coupons, but “friends and family rate—just don’t tell anyone” feels special. That makes the client feel like an insider. Same result, different tone. You could also give a gift certificate—it’s essentially the same thing. So, reasons for no discounting: you don’t discount, your expenses don’t change, or you’re not targeting daily dog-walking clients because you want to focus on pet sitting instead. Now let’s flip the coin and talk about why you should discount. I like to be different, and I’d encourage you to do the same. Standing out can work to your advantage. Sometimes it’s just putting a new name to an old trick. So let’s talk about the “yes” side—when you might discount. You could say, “Clients who book two, three, or more walks a week get a preferred rate.” But your starting rate should be high. For example, if someone calls and says they work a lot and feel bad that their dog’s home alone, I’d say, “If you were calling me for vacation care, that would be $35. But because you want weekly visits, I like to reward clients like you—it’s only $25 a walk for the life of your account.” It looks like a $10 discount, but in reality $25 is the lowest I’ll go while keeping the business healthy. That’s pricing strategy. You start high so you can reward commitment while staying profitable. This is called pricing structure and strategy. Too often, even though we’re business owners and the sky’s the limit, we look at competitors and put a ceiling over our own head. We think we have to stay competitive by matching or undercutting others. I want to encourage you to figure out what works for you—what kind of brand you want. Will you be high-volume or low-volume, high-priced or budget-friendly? Discounting isn’t evil—it’s a tool if used intentionally. If your pricing structure is healthy, you can absolutely discount. If your rates are $18 a walk, then no, don’t discount—raise your rates first. Once you’re healthy, you can lower slightly and still profit. Too many businesses look successful on the outside but aren’t healthy inside. They might boast about team size or six-figure revenue but not know their margins. Don’t be that business. Know your numbers. If you need help, join my Facebook group or book a strategy session. I love doing business health checks and helping owners turn things around. Another way to say yes is through packages. Maybe you don’t discount individual walks, but you offer packages—like 10 walks at a set price. People love packages because they simplify decisions. Think about combo meals at drive-thrus; people like easy choices. Bundling can feel like added value without hurting your margins. There are many ways to approach this. I encourage you to find what fits your business best. I’d love to have a strategy talk with you about it. This has been another episode of Bella in Your Business. This is a free podcast—subscribe so you’ll be notified when new episodes are released. Share it on Facebook or Twitter and tell your friends. Join the private Facebook group “Jumper’s Network” for daily tips, tricks, and advice for pet business owners. This is Bella Vasta, and thanks for jumping with Bella in Your Business. For more information, free articles, and coaching sessions, go to JumpConsulting.net. And remember, Bella’s got your shoot.