Customers come, and Customers go.

Discussion in 'Lawn Mowing' started by 1BadHawk, Mar 6, 2005.

  1. 1BadHawk

    1BadHawk LawnSite Member
    Posts: 127

    For those of you who are fairly well established and have a number of customers residential or commercial. What would you say the retainage of clients is from year to year, and how difficult do you find it to keep a manageable bumber of customers?

    Like many things people pay for, after while I would tend to believe that they would get tired of paying for it, and either switch to a cheaper provider, or stop all together.
     
  2. DennisF

    DennisF LawnSite Bronze Member
    from Florida
    Posts: 1,381

    My turnover rate from year to year is less than 5%. I usually lose 2 or 3 accounts each year to death or customers selling their home. Some customers change LCO's every year just to try and get a lower price. That's the ones you get a lot of calls from each Spring shopping for prices.
     
  3. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Posts: 10,178

    very low turnover, less than 3 per season. unless of course i dump THEM, which is common
     
  4. MMLawn

    MMLawn LawnSite Gold Member
    Posts: 3,569

    Not many and it of course will vary from year to year but this year I was very fortunate as we only lost 1 and that was due to them moving away and even then they highly recommended my us to the new owner and then called us and told us that they had done that on their own and gave us the new owners name and thanked me for all of our hard work over the years.
     
  5. Tom-N-Texas

    Tom-N-Texas LawnSite Senior Member
    Posts: 370

    I have over 150 accounts. I always have several people bail out over the winter.

    I've noticed also that there is very LITTLE loyalty from customers nowdays. It's quite disheartning after several years of great service and reasonable rates. Makes you feel like a cheap ***** when they dump you for no reason! (not to be crude!)

    It makes me want to forget all about being reasonable and fair with my rates. It sometimes gives me a bad attitude if I think about it too much.
     
  6. Toy2

    Toy2 LawnSite Bronze Member
    Posts: 1,924

    I think its a Texas thing, not loyal, but looking for the cheap way...some people have told me "juan did it last year for $25.00?? And I looking at an 1.5 acres to cut....go find Juan was my answer, I don't want to take crap jobs, learned the hard way....please do a friend of a friend job, made $5.00 an hour!!
     
  7. 1MajorTom

    1MajorTom Senior Moderator
    Posts: 6,073

    We have found that our customers are very loyal to us. I truly think for the most part, they like us a lot, and have no intention of leaving us for someone else. They are willing to pay a little more for dependable service that little johnny down the street can't provide. However, I feel our turnover is actually higher than a lot of what I read on here. So far we've lost $8150.00 from last year, all from customers dying or else moving into senior homes. and that's just straight grass cutting, no extras added into that price.
    We'll pick up more though and then some, we always do.
     
  8. impactlandscaping

    impactlandscaping LawnSite Silver Member
    Posts: 2,332

    We lose most of our residentials in the same manner...death or retirement villages. We retain almost 90-95% of commercial accounts each year. When you offer full service with one stop shopping, there's no reason for them to look around.
     
  9. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    I retain approx 98% of my customers every year. Heck last year I only lost one
     
  10. old dog

    old dog LawnSite Member
    Posts: 213

    5% probably close for us.Most of that is due to people I worked for 20 years are dying off! The older clients are much more loyal.Younger ones move around a lot .Commercial
    clients have wallet loyalty.I prefer residential for that reason.The worst problem
    I have is someone I worked for for years gets Alsheimers or dementia and become
    impossible to deal with.Then you have to get family or their friend involved or bail!
     

Share This Page