Be careful how you discount. Depending on product, 10% could be 30-50% of the profit on hardware.

Don’t be greedy but charge normal rates and let him know how much better it will work with the right building blocks.

I would go in with a discussion about how much has changed in 6 or 7 years.

Back when he had the system installed, the really good equipment took things past his budget. We tried to piece together what would still be the best we could to give him what he wanted and fit the budget. Yes there have been a couple of small quirks along the way.

Now is when you can try to get him excited about some of the things that are new and not as expensive as it would have been years ago.
Don't worry about a discount, deliver something that is way better than he had before. If you feel the need to give him anything, go get an Amazon or Apple gift card for $100.

I would absolutely not discount the system this time around. It sounds like you have learned the lesson to be learned here (do something you're proud of, or don't do it).

Don't all systems fail now within 5-7 years? A lot has changed between now and then and one of them is certainly reliability. Price it out full and give a little discount just to make yourself feel better.

We've been talking about putting together a financing option for customers. Then I think, if they can't afford it now, they can't afford the replacement and service over the course of their ownership. What we do isn't a sell once and never hear from them again.

Make up for past mistakes by never letting it happen again.

As judge judy said..."he ate the steak" meaning he got it, paid for it, used it. If he didn't like the steak its up to him to get up and walk out and go somewhere else next time.

So even though you didnt think the steak was good and he didnt think the steak was good he has chosen to come back to you for more steak. This doesn't require a discount...just good service from here on out.

Offer the man a good steak. Charge him what a good steak costs. Let him decide if he wants the good steak. If he doesn't he can always call up your competitor and get another terrible steak.

Anyone else hungry now?

I prefer a good burger.

Steaks are so variable, you can spend a ton of money on a steak, and it may not be as tender as you are anticipating, plus it gets cold and does not taste nearly as good as when it is hot. It is a serious letdown because hopes are so high.

A good hamburger, with good beef, almost always comes through. The flavor is there, you can add all kinds of great stuff to it, plus it has a bun top and bottom to insulate it and keep it warm for the duration of the meal. Much more satisfying.

Get the 60-40, why go lean at this point? Lol!