1. Missed the live Ask the Expert event?
    Not to worry. Check out the archived thread of the Q&A with Ken Hutcheson, President of U.S. Lawns, and the LawnSite community on the Franchising Forum.

    Dismiss Notice

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.
     

Share This Page