Budgeting cancellation rate

Discussion in 'Business Operations' started by LoneStarLawn, Nov 21, 2001.

  1. LoneStarLawn

    LoneStarLawn LawnSite Bronze Member
    Posts: 1,415

    A certain company that I know budgets a cancellation rate of 40%. Obviously they are expecting to give less than adequate value to their customers.
     
  2. bubble boy

    bubble boy LawnSite Bronze Member
    Posts: 1,020

    how can they consider that acceptable, they must spend tons on adv. just to stay at the same volume.

    i figure 5% each season. and i dump about the same 5%.
     
  3. LoneStarLawn

    LoneStarLawn LawnSite Bronze Member
    Posts: 1,415

    When you are as large as they are and have customers always complaining I guess you have to if you are not going to change your practices.
     
  4. MATTHEW

    MATTHEW LawnSite Senior Member
    from NE OHIO
    Posts: 665

    Would that be a certain lawncare company?.........
     
  5. LoneStarLawn

    LoneStarLawn LawnSite Bronze Member
    Posts: 1,415

    Of course...;)
     
  6. Matthew Morgan

    Matthew Morgan LawnSite Member
    Posts: 45

    I figure about 10% each year. That is not due to poor service mind you, but I am in a poor market area and there are hundreds of guys with a lawn mower in the trunk that will lowball the price. I don't understand them though, because some of them actually do pretty decent work! I took a larger hit this year because I was lowballed on a good commercial account and a few larger property owners died! Oh well. I picked up about what I lost and this year it ended up a wash, but look out 2002! Here I come!

    Matthew:jester:
     
  7. MATTHEW

    MATTHEW LawnSite Senior Member
    from NE OHIO
    Posts: 665

    Stone, I ran into my manager from, well, you know who, yesterday. He was going on and on about how things were really changing for the better. If I had a dollar for everytime I heard that during my 10 years of service, I could pay for a new truck. He even had the gall to tell me "the door is still open if you want to come back" HAHAHAHAHAHAHA. :p
     
  8. So that leaves 40% of "The Lawn Stariod CO" unhappy customers for us to make into loyal happy customers.

    And that doesn't take much work.
     

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