Customers not paying

Discussion in 'General Industry Discussions' started by GALAWN, Sep 13, 2012.

  1. GALAWN

    GALAWN LawnSite Member
    Posts: 167

    The last time I started a fert and squirt company in 08 we got to 250 customers in 8 months and had a 96 percent retention rate. This year I started another business and the retention rate in about 75%. I have been de-activating customers left and right this time around. The only variable that has changed is that last time we left free estimates on streets that I wanted to get customers and then called them to explain why we left the estimate which is the old school way but it opened a dialogue and worked well. This go around I hired people to go door to door and they got more sales but about two thirds just didn't pay. Do my conclusion is that door to door doesn't get the same quality customer that the previous way did. Does anyone else have this problem. I think that the economy and uncertainty has come into play being that 2012 isn't 2008. Has anyone else dealt with this?
     
  2. GALAWN

    GALAWN LawnSite Member
    Posts: 167

    Sorry not two thirds but about a quarter didn't pay.
     
  3. sdk1959

    sdk1959 LawnSite Senior Member
    Posts: 909

    As someone with sales experience there is a big difference between the hard sell (strong persuasion, talking at the customer, not listening)) and the soft sell (gentle persuasion listening to the customer concerns).

    With the hard sell there is a much higher percentage of buyer's remorse.
     

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