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Discounts for referals

Discussion in 'Lawn Mowing' started by BLUECAR202, Feb 29, 2000.

  1. mountain man

    mountain man LawnSite Member
    Posts: 141

    Fireball: <br>You mentioned that your minimum is $50 per month. That seems incredibly low. What exactly are you doing for $50? I expect to get at least $30-$35 PER WEEK on our accounts. <p>I agree that it is good to reward a customer that gives you a referral. I have never quantified it, but I figure if you add labor, follow up time, marketing, advertising exp, etc then each new account probably (costs) $100 plus to get. That referral therefore has saved you most of those expenses. I have even gone so far as to give a free month of service for someone that refers me a neighbor. I can make that up in a month or so by the increased productivity and decreased windsheild time. (We have annual agreements and &lt;10% attrition so I don't worry about the referral fee since I know this person is more than likely be a long term customer.)<p>Has anybody figured a way to actually calculate what each new account costs? It has to be significantly more than the $15-20 range that has been discussed.
  2. fireball

    fireball LawnSite Member
    from ne Pa
    Posts: 172

    my mistake. I meant 50.00 per cut. But this is only one service of many that i offer. The object is to sell the whole pie. As long as you offerto &quot;just cut grass&quot;you will earn what grasscutters get.
  3. jeffclc

    jeffclc Guest
    Posts: 0

    Here's another thought. If you offer a variety of services, try offering your refering customer a service that they have not purchased from you in the past. If you have never trimmer their bushes, fertilized the lawn, ect... Try offering some of that type of servise to them for giving you the referal. <p>This can be more meaningful than a credit on the bill, some have more money than they can spend, and it will also introduce your other servicces to them. You may even get the job doing the bushes, fertilizing for the season, ans seasons to come.
  4. fireball

    fireball LawnSite Member
    from ne Pa
    Posts: 172

    jeffclc: good point. I just have a problem with giving a service away free. If you put into the customer mind that it is free or you don't consider it valuable how do you convince them it is worth something the next time

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