Lawn Account Pyramid

Discussion in 'Lawn Mowing' started by Grass-Masters, Dec 3, 2006.

  1. Grass-Masters

    Grass-Masters LawnSite Senior Member
    Posts: 424

    I know this sounds a little crazy, but I am going to try something this coming year with my accounts. If an account is $140 mo., would it be worth 14.00 mo. to get another $140 mo.. So every month you get $280 and pay $14.00. I am sure I will get an array of responces, some agree some may think I am giving up alot, and some may have tried this before. I have the details on my web site http://carusolawncare.com click on the referral program link to the right.

    I wanna know what you think. I think my customers may generate a few new customers.
     
  2. grandview (2006)

    grandview (2006) LawnSite Gold Member
    Posts: 3,465

  3. Richard Martin

    Richard Martin LawnSite Fanatic
    Posts: 14,700

    I would put a time limit on the discount. Forever is a long time to give a discount of that proportion. Maybe give one free lawn service for every referral or something.
     
  4. Grass-Masters

    Grass-Masters LawnSite Senior Member
    Posts: 424

    It is not illegal to give a discount for referrals. If I would would not have put the word pyramid in there you would not think that. Perception is funny sometimes.

     
  5. Grass-Masters

    Grass-Masters LawnSite Senior Member
    Posts: 424

    I know what you mean, but it is not forever. It is only for as long as the new customer is using our company. So we are only giving discounts if we are making money. I think I may be willing to give up $14.00 on every $280.

    The way it would be set up, I would cut 1 customers lawn free for $1400 per month in 10 referal customers. So I give away 140, get back $1400. The math looks like it would work well.
     
  6. dKoester

    dKoester LawnSite Gold Member
    Posts: 3,267

    Nice site, but your prices are way too cheap. In this business time is money. Your going to cut a 1/4 acre lot for 25 bucks, not me.
     
  7. fiveoboy01

    fiveoboy01 LawnSite Silver Member
    Posts: 2,988

    Beware of discounts.

    They attract a bunch of bargain hunters who will waffle around, then never use your services unless you are a lowballer.

    No, this is not the case with everyone. But it happens. I did "one free mow", xx.xx discount, etc for a couple months.

    It's just too much hassle. Do good work, and you'll get referrals without giving money away.
     
  8. dKoester

    dKoester LawnSite Gold Member
    Posts: 3,267

    Do good work, and you'll get referrals without giving money away. Like five said!
     
  9. Grass-Masters

    Grass-Masters LawnSite Senior Member
    Posts: 424

    If you look at the rest of the prices, that is only cut, and trim. Most customers want edged, ect. And that is $35.
     
  10. fiveoboy01

    fiveoboy01 LawnSite Silver Member
    Posts: 2,988

    I agree.

    You're leaving WAY too much money on the table, and you want to give up more by giving away $ for referrals?

    You'd better REALLY rethink your "Plan A" mow/trim pricing. 25 bucks for a 1/4 acre, well that's not terribly low. But 5 bucks for each additional 1/4 acre!?!?

    That means you'll be doing mow/trim on one acre for 40 bucks. Way low.

    What if someone wants you to cut 5 acres? You're going to do it for 120.00(according to your price schedule)?

    Not trying to rip you here. Your website is nice. But you need to raise your prices.
     

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