Back scatching!

Discussion in 'Hardscaping' started by jhsmith4, May 13, 2008.

  1. jhsmith4

    jhsmith4 LawnSite Member
    from Ga
    Posts: 110

    We do strictly landscape management work, ie: lawn maintenance, mulch, small landscape projects and ect. Recently, I have received calls about hardscapes and patios, so I scheduled appts with the home owners to see what they were looking at installing. One customer about 2200sq.ft of stone work, retaining walls, outdoor kitchen. way out of my league to do this, so I contacted the stone supplier to get a list of installers. I meet this guy at the job site, he did his thing about the stone work and gave an estimate of 28k. The customer commited to the price.
    The installer said he would take care of my time, since I sifted the wheat on this job! He offered me 200.00, which is an insult, since he also rooted me out of installing some plantings and 125 bales of pine straw. I have received 2 more calls this week about this type of work. So my question is, what should I charge this guy for the referal? 5%, 10%?
    Really need help on this, I pay alot for our ads, plus I'm feeling the customer out! Maybe something like 0-10k, 350 fee anything over the 10 k add a additional 2.5% per thousand to the 350. Help me, I want to be fair!
     
  2. bigviclbi

    bigviclbi LawnSite Senior Member
    from nj
    Posts: 894

    tell him $300 minimum and 5% on anything over $5000.00. I think thats fair.
     
  3. JohnnyRoyale

    JohnnyRoyale LawnSite Senior Member
    Posts: 616

    Some designers we work for get 10% of the job as a referral fee. So do garden centres, our hardscape suppliers, the landscape company handling all the Home Depot leads, and so do I for that matter when we're overwhelmed. 10 points is fair in my opinion.
     
  4. crab

    crab LawnSite Senior Member
    Posts: 633

    maybe you should learn to do it yourself,5%would be 1400$. because you went to you're stone supplier to find a qualified installer and called someone you expect 5%?.you called him because it was( way out of you're league).i hope he does a good job,and doesn't't make an ass out of you,since you have no long standing relationship with him and are by no means his sugar daddy how do you know what he will do for "you re" client..if anything the stone yard should get 4.5%.when you have the constant work, or a real give and take relationship with another contractor fine get you're 5 10 15%whatever.and more to the point if you want to make that money then you should be paying him (that guarantee gives you the control and the right to charge 31000$and pay him 28000$)if you just showed him the front door to to you're job what do you expect,you should have had an agreement about planting and mulch long before you brought this guy in,when you say you were (feeling this client out)it sounds to me like you don't really know what you're doing ,because you're stone man had no problem selling them 28000$ of work.take you're 200$ go lick you're wounds and learn from you're mistake.good luck in the future.:)
     
  5. capetan

    capetan LawnSite Member
    Posts: 226

    If i were you, i would just be the contractor for all the jobs, that way you dont have to be playing ridiculous commision/ percentage games with the hardscaper, unless you really trust the hardscaper, which it sounds like you just met him. the more your in control of the situation the more money you will make. my vote is act like the contractor, and do all the finishing work ( clean up and landscaping) , subbing out hardscaping jobs is some of the most profitable sub work in the landscaping field

    if you trust the guy and dont mind handing off jobs a dollar amount or commission would probably meet your needs in which case 5 to 10%
     
  6. amscapes03

    amscapes03 LawnSite Senior Member
    Posts: 398

    Just be very clear with the sub on what your referral fee is well before you meet at the customers property. To get the job, he may be bidding tight and will need to figure in your numbers as well. Since you don't know this guy, i'd also make sure your fee is included in the first deposit check that he gets.
     

Share This Page