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yrdandgardenhandyman
02-05-2005, 06:29 PM
I would like to submit a simple letter to my clients for your critique. I have been offering a variety of services and have had fair success. I simply would like to expand a bit. I'm not sure of the best way to word the reward clause. It is, at this point, very simple. Mowing clients, in this area, are put off by and resistant to contracts:
Thanks

Landscaping- referral reward of 10% of labor to referring client for referral valued over $150.00 labor.

Mowing- 1 free mow for referring client after 4th mow for referred client.

walker-talker
02-05-2005, 07:42 PM
Mowing- 1 free mow for referring client after 4th mow for referred client.Why not wait a full season of mowing for the refered client before you give away a mow to the referring client?

Lawnchoice
02-05-2005, 07:45 PM
Why give away anything at all?

I just don't see it. Why work for free?

Mclaughld
02-05-2005, 08:20 PM
Why give away anything at all?

I just don't see it. Why work for free?


I agree. People like referring you business. If you do a good job, people will WANT to tell their friends about you.

Shawns Lawns
02-05-2005, 08:24 PM
I agree. People like referring you business. If you do a good job, people will WANT to tell their friends about you.

I agree i would not want to cut for free for a referral, there is no guarantee they will stay with you.

stumper1620
02-05-2005, 08:32 PM
I would like to submit a simple letter to my clients for your critique. I have been offering a variety of services and have had fair success. I simply would like to expand a bit. I'm not sure of the best way to word the reward clause. It is, at this point, very simple. Mowing clients, in this area, are put off by and resistant to contracts:
Thanks

Landscaping- referral reward of 10% of labor to referring client for referral valued over $150.00 labor.

Mowing- 1 free mow for referring client after 4th mow for referred client.
refer a nearby new client within 30 days that signs a season contract & receive credit for 1 mowing on final bill of current season.
something like this is how i would go, its no help if the referal is 2 towns away. and this way you have 2 contracts for the season. instead of just a month or so. :D payup

YardPro
02-05-2005, 08:33 PM
your labor figures are off
10% off how much labor????
you have to have limits.

i really don't like the wording of that one.

if you would like to give a reward. give a free lawn service for the referal of a client After an entire season. give them the last service free, or the first NEXT year.
this will also give them incentive to come back next year.

Jeff@SGLC.ca
02-05-2005, 08:57 PM
I've toyed with incentives in my mind, being my area is quite competitive. I give 5% Discount on all pre paid accounts before May 1st.

The one free cut idea could be interesting, may turn the client into a sales guy to see how many free cuts he can get. I agree the new referal would have to sign the one year contract. Add the free mow on to the end of the season, u know those seasons that go 2 cuts beyond last years norm or the begining of the new season. The beginning of the new season would work better mind you if you stipulate on renewed contract.

stumper1620
02-05-2005, 09:02 PM
I've toyed with incentives in my mind, being my area is quite competitive. I give 5% Discount on all pre paid accounts before May 1st.

The one free cut idea could be interesting, may turn the client into a sales guy to see how many free cuts he can get. I agree the new referal would have to sign the one year contract. Add the free mow on to the end of the season, u know those seasons that go 2 cuts beyond last years norm or the begining of the new season. The beginning of the new season would work better mind you if you stipulate on renewed contract.
never give a free mow! give a credit on the bill that way it can be used on taxes as a promotional advertising.

stumper1620
02-05-2005, 09:02 PM
I've toyed with incentives in my mind, being my area is quite competitive. I give 5% Discount on all pre paid accounts before May 1st.

The one free cut idea could be interesting, may turn the client into a sales guy to see how many free cuts he can get. I agree the new referal would have to sign the one year contract. Add the free mow on to the end of the season, u know those seasons that go 2 cuts beyond last years norm or the begining of the new season. The beginning of the new season would work better mind you if you stipulate on renewed contract.
never give a free mow! give a credit on the bill that way it can be used on taxes as a promotional advertising. payup

procut
02-05-2005, 09:27 PM
The whole referal incentive thing never made much sence to me. The way I see it, if you do a good job customers are going to tell people about you anyway. Thus, it is not nessesary to give anything away free.

Soupy
02-05-2005, 09:34 PM
Why give away anything at all?

I just don't see it. Why work for free?

New customers do not come free. You have to pay for them one way or another. Even if they see your work, then the fee to obtain them gets reduced from your over-all cost of obtaining new customers. I would gladly pay $30 or free cut valued at $30 for any new customer. If it was just that easy.

newbomb
02-05-2005, 10:17 PM
I would not put out an offer of any type of free work. This really is work (what we do). If you do good work, are dependable and professsional, your customers will want to tell others about you. If a customer refers a new client to you and it develops into a good account, then maybe you could do something free as a thank you. I would never do it up front because you haven't established the value of the referal yet. Someone mentioned a small discount for up front payment. That would be ok since money in hand beats chasing after it every time, so long as there is some profit in the job. I have spent 20 years doing favors and working too cheaply. I can tell you it only leads to failure of your business.

-Paul

Soupy
02-05-2005, 10:40 PM
I don't normally go around praising every good job I receive, but if there was a bonus in it for me, I might. Do you guys really think your customers run to the country club boasting about how good you are? They might mention your name if asked, but I highly doubt the majority of them are bringing up the yard man out of the blue. If you offer a bonus, they might just slide your name in somewhere without being asked.

I would rather give away 30 minutes of free work. Compared to spending money on door-hangers and spending hours delivering them just to land one customer. Referrals are easier to land, so you save more time with less estimates.

Note: I write a check for the $30 cut to the customer. This way you really are not working for free. Your buying advertisement. Totally deductible this way.

olderthandirt
02-05-2005, 11:02 PM
I don't normally go around praising every good job I receive, but if there was a bonus in it for me, I might. Do you guys really think your customers run to the country club boasting about how good you are? They might mention your name if asked, but I highly doubt the majority of them are bringing up the yard man out of the blue. If you offer a bonus, they might just slide your name in somewhere without being asked.

I would rather give away 30 minutes of free work. Compared to spending money on door-hangers and spending hours delivering them just to land one customer. Referrals are easier to land, so you save more time with less estimates.

Note: I write a check for the $30 cut to the customer. This way you really are not working for free. Your buying advertisement. Totally deductible this way.

Ditto what soupy said! You and your work are really not the talk of the town, but a referal is almost as good as a signed customer, and I'll gladly "give " away a free mow. $30-$40 compared to $900-$1200 plus the extras. Easy decision.

Mac

nriddle77
02-05-2005, 11:32 PM
I don't know if my customers really think about me enough to speak of me to their friends. If someone asks them, I'm sure my name would come up. Otherwise, I'm out of sight and out of mind to some of them.
Also, when people give me referals, they will usually ask first if I'm interested in more work. So customers may not know that we do want more work, unless they are told.

walker-talker
02-06-2005, 07:31 AM
Nobody is giving anything away for free!!! They are selling the idea or perception that something is free. Which sound better, "Every new customer get a free mowing if they use my sevices for one year" or "sign with me and I will charge you $870 for the first 29 mows and nothing for the last mow" or "sign with me and I will charge $29 instead of a regular $30 per mow".

Last year I spent $2000 on postcards and received 4 mowing contracts. That's $500 per client. Like Soupy said, I would gladly have paid $30 per client. I could have picked up 66 new clients for that same $2000 if I would have had the option of going that route. I think demographics of each company has somthing to do with it. I think in most the neighborhoods that I mow in, people don't talk with each other as much. In newer housing additions, they probably talk to each other more....just my guess.

YardPro
02-06-2005, 07:37 AM
i agree woth soupy and olderthandirt.

i think that ofering an incentive is a good idea.

and to those that won't "give work away for free"

do any of you advertise???? what's the difference??? you are still allocating money to the acquisition of new customers

yrdandgardenhandyman
02-06-2005, 01:14 PM
Thanks for the replies. I did search on this topic and came up with pretty much the same result. 50% for and 50% against. I am leaning toward offering a reward for mowing referrals but dropping the landscaping referral idea. Harder to set a limit on the landscaping.
What I was really looking for was LCO's who had actually tried this idea and how it worked out for them. Better to spend $30.00 to gain a customer. Hell, I spent almost $1000.00 last year and gained 12 customers. That's around $80.00 per customer not counting the few 1 or 2 timers. With referrals, I only pay after I've gained a customer. I would like to gain 10 more regulars this year.

grass4gas
01-30-2010, 03:46 PM
What I was really looking for was LCO's who had actually tried this idea and how it worked out for them. Better to spend $30.00 to gain a customer. Hell, I spent almost $1000.00 last year and gained 12 customers. That's around $80.00 per customer not counting the few 1 or 2 timers. With referrals, I only pay after I've gained a customer. I would like to gain 10 more regulars this year.

Exactly. If you don't get any referals, then you are not out one cent. You could spend a $1000 up front for advertising and not get one new customer, but you're gona kiss that grand goodbye.

If you want to grow fast, then advertise.

I'm going to offer something in the form of a credit or a free service...something they don't already have.

Jack

grass4gas
01-30-2010, 03:49 PM
Just saw that the last post on this thread was almost four years ago.:hammerhead::dizzy::hammerhead::dizzy::hammerhead:

Big Bad Bob
01-30-2010, 04:27 PM
Just saw that the last post on this thread was almost four years ago.:hammerhead::dizzy::hammerhead::dizzy::hammerhead:

What's wrong with that? The same principles apply.payup

JayD
01-30-2010, 07:12 PM
The whole referal incentive thing never made much sence to me. The way I see it, if you do a good job customers are going to tell people about you anyway. Thus, it is not nessesary to give anything away free.

It's like someone said on first page, when there is something in it for them, they become a salesman for you. Also like the old saying gos, you have to spend money to make money....just my 2 cents

JayD
01-30-2010, 07:13 PM
New customers do not come free. You have to pay for them one way or another. Even if they see your work, then the fee to obtain them gets reduced from your over-all cost of obtaining new customers. I would gladly pay $30 or free cut valued at $30 for any new customer. If it was just that easy.

Thank you......you took the words right out of my mouth..

JayD
01-30-2010, 07:37 PM
i dont know if i can get this to upload..




nope, oh well...never mind

topsites
01-30-2010, 07:52 PM
If you do a good job, people will WANT to tell their friends about you.

That's right.