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An ugly logo / What to do!

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So GD I'm working on designing a clients website and they have an exceedingly ugly logo that is obviously self made. It's blocky purple letters in all caps and underneath their businesses name is three words (what they produce) spaced out in the same bolt italic all lower case font. (I can't post the logo because I'd like to keep my job).
So GD how do you recommend I go about convincing my client they need a new logo, I've tried gently prodding that it could use an update to no avail.

Pic unrelated, from pride in chicago.
>>
A logo replacement might cost more than just paying you and replacing it on the website. They might have printed brochures, street signs, advertisements on cars, public transport and so on. You have to factor that in before even attempting to suggest anything directly.

If you see that those are a not a concern for the most part, then I suggest to make a few mockups, sketches, play with the idea hoping that the client might pick it up. This is slightly different to spec work because there's no one else you're competing with here. Though be explicit that the logo idea is only his is he decides to pay, so he doesn't run off to someone else or even himself to redo it.
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