Is This A Fair Price?

Discussion in 'Lawn Mowing' started by kleankutslawn, Feb 28, 2008.

  1. kleankutslawn

    kleankutslawn LawnSite Bronze Member
    Posts: 1,185

    I have a guy in the real estate industry that aproached me today about doing some commercial marketing for me,i have known him for years & he has sent me alot of leads.The problem is he wants 25% of the gross off of every account he gets for my business.Is this a fair price?If not what is?
     
  2. TREEGUARD

    TREEGUARD LawnSite Senior Member
    Posts: 303

    That's way too much 10% no more it's a finders fee thats all.
     
  3. kleankutslawn

    kleankutslawn LawnSite Bronze Member
    Posts: 1,185

    thats is the same price i came up with.He started talking about the time he will have to spend with each potenial client.
     
  4. Weekes

    Weekes LawnSite Member
    Posts: 107

    10% for one season is my going rate. Any more and you get no profit.
     
  5. kleankutslawn

    kleankutslawn LawnSite Bronze Member
    Posts: 1,185

    is it normally enough money left to see a good profit?
     
  6. TomberLawn

    TomberLawn LawnSite Bronze Member
    Posts: 1,298

    Real estate must be doing pretty bad if somebody wants to leech off of a lawn care guy like this. Whatever properties he could get you, you could get yourself if you tried. I wonder how the property managers would feel knowing they are paying $100 but only getting $75 worth of service. I've heard a few guys say you can always count at least 30% of gross for expenses in a well managed business. Tack another 25% on top of that and it leaves you with 45% to take home. If the real estate man is this desperate for work, give him a trimmer and blower and put him to work!
     
  7. kleankutslawn

    kleankutslawn LawnSite Bronze Member
    Posts: 1,185

  8. kleankutslawn

    kleankutslawn LawnSite Bronze Member
    Posts: 1,185

    lol!!! thanks for your opinion
     
  9. Big C

    Big C LawnSite Bronze Member
    Posts: 1,641

    What is he really doing for you that you cannot do for yourself.......i'd tell him to suck a fat one!!!!:laugh:
     
  10. IMAGE

    IMAGE LawnSite Bronze Member
    from midwest
    Posts: 1,134

    10% and put a cap on it to $250 per referral. He is allready spending time trying to sell whatever he is selling them, it is only a few min of his time to give them your card and a reference.
     

Share This Page