Im starting a pool service company that will also sell chemicals and all other supplies on a delivery basis. Dont have a store. Im curious which way of doing things would be more attractive to the consumer.

Ive got my prices set for chemicals. They are lower then the local competition and lower then even alot of online sites. Now im fine with my profit margins with the prices how they are. However I wouldnt be able to do any 10% off deals etc.... So which way sounds better to you.

1. Keep the prices just as they are and advertise them as such. Not enough room in margin to do 10-20% off specials.

2. Raise prices up to what local competion is at. This would be the "regular price" Then offer customers the option of becoming "members" where they get a card for a cheap price like $5. Members would get 12% off every purchase they ever make. And with the raised prices, taking that 12% off brings them down to what I originally planned on doing so the margin will be ok. Then maybe do something such as, if a member refers someone to me then they get $10 credit.

Just curious what you all think as consumers would be better. Ive been thinking option two would help with repeat business. Thank you for reading and im looking forward to seeing what you think.