Giving competition referrals...

[Bassman]

I have been giving a competitor referrals for tree work as I don't do trees. I also give referrals to a woman for weeding. I am as busy as I want to be doing lawn and hedge/shrub work. As of this moment I don't get squat for sending business to them. Should I be getting at least some fee for helping them find these jobs? They amount to hundreds of dollars in just the last week alone. It's my advertising dollars and my current customers that are providing this work that I don't choose to do to these sources. I am running a business and am not sure where the Mr. nice guy stops and the bottom line should take precedence. I'm beginning to feel like there should be something in this for me for referring the business. Comments appreciated.
Bassman

[Vandora Lawn & Landscape]

Do they know that you're referring them business? Also, have they referred you any business?
Cullen Vandora
Vandora Lawn & Landscape

[bob]

I wouldn't ask them for a fee. But, I would ask them to send lawn business your way.

[Lazer]

Usually these deals work best when there is reciprocation.

Being that you can't take on any more work, it's time to request 5-10% of the action or some other value added: Tree work around your house, cut-rate brush-chipping etc.

[jaclawn]

What about sub-contracting the jobs to them?

[TGCummings]

That's what I was thinking: sub-contract it.

If I understand it correctly, you take bids for the tree and weeding work from them, on behalf of your customers, than you propose the work to be done to your customer with a % fee increase, say 10% above the quote.

Correct?

-TGC

[thelawnguy]

What TGC says is what I do, but I get the quote, mark it up 10 but the "sub" is the one who bills and they in turn give me my 10%, otherwise it becomes an insurance nightmare. Maybe your insurance co treats subs differently than mine. My rates would be considerably higher, and I would have to keep ACORD forms on file and updated for every sub.

[Twotoros]

Sub-contracting is the way to go. Tell them you'll kick the biz their way and that you need 10%. Either off their end or added to their price . Subing is no big deal . Keep track as if any other expense , you bill the customer and at the end of the year send the sub a 1099 form . Check at the IRS (don'y be afraid) they have the forms or your accoutant can do it.

A mow only biz can be a full sevice biz easy enough but you have to know that the sub can and will do good work.

[cos]

that's the way it should be, you should ask him to knock some off the price and ask if he would give you a price on how much it is really worth and then submit the price. If this tree man isn't willing enough to work with you then find one that is. If you can't find any one then turn it down, and tell them you don't know anyone too reliable at the moment. It's hard to believe that this person isn't willing to atleast throw you a bone for the work, hmmmmmmmm.



Beest Wishes.

[geogunn]

bassman--as you are not really giving "full service" to some of your customers, you do them a favor by referring the rest of their needs to those that will do the job.

if your "subs" don't find your new proposed working arrangement acceptable, and therefore don't provide the service to your cuatomers that you don't either...then I wonder if your customers will replace "you" with a full service operator.

just a thought. good luck.

GEO

[gusbuster]

Myself, I only give referalls to friends in the various trades. Most of them are good about either sending work my way or buying me a nice lunch or dinner.

I am also satisfied with a very nice thank you call.
John

[parkwest]

Sub out the work, but please mark it up more than 10%. Do yourself a favor and make it worth your time(at least 25%). Anyone who only marks up a job 10% is not going to be in the Fortune 500 anytime soon.

We sub out over 50% of our contracts and we use contracts with all our customers and work orders for all our subs. Get a detailed WRITTEN job desription for your customer IN WRITING, use that exact same description for your subs WRITTEN work order. Now give the customer a ball park estimate if you can (to see if the project will fit their budget). If you don't have a clue on the price, tell them you will get them a price a soon a you can. Next, get a WRITTEN quote from your sub, mark it up for your profit and overhead. Put that in your WRITTEN contract to your customer.

Yes, you need to keep track of the subs insurance and send out 1099's but that is just part of running a business that should be passed on to the customer.

[Toddppm]

If you don't do tree work they're not your competion?
I used to have people want a cut if they referred me tree work, you have to remember the tree co's are in business too, what sense does it make to give somone else a cut. When we bid on a job we're trying to give a competetive bid and still make a profit too. I do work for a few different people as a subcontractor, if they want a piece they add it on to my price after i look at it.Don't try to estimate jobs you have no idea how to do, it may look pretty simple but there could be alot of things you don't see, like the tree could have a rotten spot or crack that makes it dangerous to climb, or special equip. might be needed, this can raise the price big time! If you give your customer a guesstimate and then come back with a price double what you thought they will think you're trying to rob them and there goes your chance to make some easy money.

[thelawnguy]

"I used to have people want a cut if they referred me tree work, you have to remember the tree co's are in business too, what sense does it make to give somone else a cut."

There are lots of tree guys in my market area, I get a cut because the tree guy can give me a competitive quote since Im a great customer (how many tree customers of yours have you come back 15 times a year?) and the tree guy I use knows that when I call him its stick a fork in em time cuz they are already done, as most referrals should be.

So he quotes a 1000 job and throws me a c-note for doing nothing but giving him a call, look at it the other way you can get a call from your $240 a month yellow page ad drive 20 minutes spend an hour writing up a proposal, the lonely Widow Carter chewing your ear with tales about her late hubbys prowess, then have the next guy who comes to bid, you know the type, with no ethics, slam her into clear-cutting the whole property on the spot then you spun your wheels for nothing oh yeah still got that yellow page ad bill sitting on your desk.

[Doug406]

Around here we work on a professional freinds attitude, sure I mark up some subs work 15%. But it depends on what it is. For example, on bidding a lawn last week, the lady wanted a large oak tree topped. Well I do not have the knowledge or insurance for that, so I told here I would send somebody else her way. But here is what i did. The same day I quoted the lawn, I called my sub, he called the customer back the next day and has already taken care of the problem tree. I get a call 1 week later saying, yes you have the job . Why you ask? Because she says she was impressed with the fact that I got someone so quick to take care of that tree that she has been trying to find someone to cut down for a long time. My good reliable sub sold a long term customer for me. SO what I did not make $65 off the deal. I now have another customer.

[LoneStarLawn]

We gave a landscaping maintenance job to a larger company that has more man power to complete the job. Since we know the owners, they decided that any new mowing customers they get they will swing our way since they plan on dropping lawn maintenance all together to lean towards landscaping.

[Toddppm]

Yeh , hundreds of tree guys in my area too. I would rather get a job through my own advertising or referral, they know who i am where i came from, they initiated the call. Subcontracting we usually don't meet the customer or they don't even know who we are. The people we sub through know our work and trust us but not much chance to get a referral from the property we're working at. Jobs we get through our ads or referrals have a compund effect, he gets 15 calls a year? I get referalls from referrals ,on and on.

[Toddppm]

Doug406, what do you mean by topped? I have heard that term used to describe a few different kinds of trimming or even taking the tree down. But if you meant taking the tops off the trees you might want to get another tree guy as this is and has not been an acceptable pratice for a long time.

[Doug406]

The tree hade a dead limb ( one of the main stems ) about 50 feet up. So "topped" was just a word.