Lawn Account Pyramid

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

  1. mdvaden

    mdvaden LawnSite Bronze Member
    Posts: 1,938

    Are there any customers that may take advantage of the system?

    Like one getting you a customer, but when the first guys contract runs out, the second guy puts the first in as a referral too?

    What are the limitations on the deal?

    Does it max out at 12 months worth, or keep accruing?
     
  2. Grass-Masters

    Grass-Masters LawnSite Senior Member
    Posts: 424

    Williams LC- I did not like it either, a little annoying. Glad it's gone.

    MD Vaden-
    1. I am not sure yet, this is just an idea, customers are not using the site yet.

    2.My contract does not expire, it is reacuring until customer cancels.

    3. The only limitations are they must be signed to a $35+ mowing agreement, the referral must sign and continue to use our services for them to continue to get any discount. Once new customer discontinues service discount would discontinue.

    4. No it would not max out after 12 months, it would continue accurring as long as the other person is still an active customer.
     
  3. cush

    cush LawnSite Senior Member
    Posts: 352

    I think a customer who is geting a discount would get used to paying the lower amount and if the refferal canceld they would cancel too. I also think spendind 10% on marketing is a little steep. At $25 per cut your net profit margin is probably less than 10%, why give it away?
     
  4. RonB

    RonB LawnSite Senior Member
    Posts: 429

    I have never been given a discount on anything EVER when I speak good about a service. Does your plumber, electrician, carpet cleaner, car repair guy, etc. give you one?

    If the customer you're giving the discount to refers you to someone, then you give that person a discount - "ahh, that's why my friend recommended you" .. to get a deal.

    I will do a little something extra if needed for no extra charge to show my appreciation but no discount on regular service.
     
  5. Grass-Masters

    Grass-Masters LawnSite Senior Member
    Posts: 424

    ok guys. I like the input, even the negative is good. But just so everybody knows, my prices are right in our market. Remember i am in metropolitan detroit, the home of the big 3 and hundreds of thousands of layoffs in the last few years. We have one of the worst economies of any major city at the time. So I am doing the best I can right now on price. But please keep the comments on the idea of referrals coming, I appreciate it.
     
  6. NCL

    NCL LawnSite Member
    from NJ
    Posts: 132

    Bad Idea, your not making enough money to be given any away. To cut a lawn ,edge, trim bushes, thatch, overseed for $45 a week , are you out of your mind?????????????
     
  7. BQLC

    BQLC LawnSite Senior Member
    Posts: 574

    What would this service run in your area? Just curious
     
  8. Grass-Masters

    Grass-Masters LawnSite Senior Member
    Posts: 424

    This is not that low, it is $20 per week over our normal cut price. $20 x 28 weeks = $560 per year to dethatch, overseed, and aerate, and bushes will take minutes if managed all season. I gotta hear how this is to low. That is an average of almost $200 each service. I should come work were you are at.


     
  9. Richard Martin

    Richard Martin LawnSite Fanatic
    Posts: 14,700

    Caruso, I have one question about your prices... Are you happy with them?

    Because if you are I wouldn't even bother to reply to criticisms about the amount you charge.
     
  10. dlm17

    dlm17 LawnSite Member
    Posts: 102

    caruso, i think you gotten some good responses here but there are a couple of issues here that people seem to be missing, you keep telling them this is the going rate in your area, but they keep saying you are not charging enough, thats where you have to be smarter than the guy from nj, apples and oranges, i get 150.00 per cut down here but thats in line with the areas i work so how can i tell you what your price should be. i think the problem with your discount is it could get very complicated and confusing for your customers i suggest a referral fee like a real estate agent one time the customer will be happy to get the money you can take it off their bill or send them a check
     

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