Referral Discounts??

Discussion in 'Starting a Lawn Care Business' started by martinfan06, Jun 12, 2006.

  1. martinfan06

    martinfan06 LawnSite Senior Member
    Posts: 631

    Just wondering how many business use referral discounts? Working on my contracts now and thinking of using this method. As incentive for yearly clients who do get me more biz. Any advice is greatly appreciated thanks.
     
  2. sooner74

    sooner74 LawnSite Member
    from UT
    Posts: 76

    I started off by giving customers a free cut for referring a customer that I provide service to on at least 5 occasions but found I was giving a lot of money away so now its only $10. In my limited experience, customers refer you because the quality of service and not the $$
     
  3. FIRESCOOBY

    FIRESCOOBY LawnSite Senior Member
    Posts: 981

    I also do a $10 ONE TIME referral credit.
     
  4. topsites

    topsites LawnSite Fanatic
    Posts: 21,653

    I don't buy customers, it's too expensive, I'd rather pay for advertising because if I spend 3 thousand dollars / year on paid advertising, that's 10 percent of my gross but referrals tend to want a 20% minimum discount every time. This has been my experience, some want it less than half price but really $10-$15 / hour would be nice.

    So I don't give squat, referrals make me cringe everytime I hear that, I am thinking GREAT now if something goes south I lose them both <- That has happened to me so many times, some even expect me to do things cheaper just because they are the friend of my customer and / or expect me to bend over backwards until my nuts are resting on top of my head and then if I don't do it, they badmouth me and either way I have lost many customers over this referral nonsense.

    To say the least, word of mouth is so over-rated like it's the greatest thing since sliced bread. Yeah, whatever lol...
     
  5. Ol'time Lawncare

    Ol'time Lawncare LawnSite Senior Member
    from NJ
    Posts: 497

    Only thing i give on a referral is a big THANK YOU!
     
  6. mikesturf

    mikesturf LawnSite Senior Member
    Posts: 795

    I've stopped giving discounts, etc. The customer who refers you loves your service so keep up the good service. I usually try to do a little extra for that person. It's easy to find people who like your service, but when you have someone that is a "salesperson" for you, you need to up the quality since they already have a predisposition to refer you, I feel that the stepped up quality may and usually will spark more referrals. REMEMBER, always ask for referrals.
     
  7. SOUTHERNGREENSCAPES

    SOUTHERNGREENSCAPES LawnSite Senior Member
    Posts: 763

    Hey Guys. I Can't Believe You Are So Cheap With Your Customers. A Good Customer Is Sometimes Hard To Find. I Give Anyone Who Refeers Someone Who Signs A Seasonal Contract A $50 Credit Or A $50 Gift Certificate. The Way I Look At It Is I Would Spend That Much Or More To Print Flyers, Drive Around Town Putting Them Out And Still Not Knowing What You Get When Someone Calls. Normally When Someone Takes The Time To Refer Someone, They Don't Want To Refer Someone Who Is Going To Make Them Look Bad, So They Most Likely Won't Refer Someone Who They Willing Know Is Bad At Paying Their Bills Or A Tuff Critic. Do What You Want, But I Cherish My Referals.
     
  8. paulslawn

    paulslawn LawnSite Member
    Posts: 4

    Does anyone give a "neighbor referral" discount? Seems like if you can get 2 clients right next to each other it would be like doing one big lawn. No extra cost for time lost driving, loading and reloading etc. Just a thought.
     
  9. martinfan06

    martinfan06 LawnSite Senior Member
    Posts: 631

    My thoughts exactly!! I someone gets me a 1200$ a year client, whats 30$ off there next bill(1 time). I they refer 3 to 4 40$ off next bill(1 time). Now this client refred you 4800$ a year in new biz you saved them less than a 100$ :confused: Dont know about you guys but ill always trade 100$ for 4800$!:cool2: Seems like some guys are REALLY cheap.
     
  10. Sandgropher

    Sandgropher LawnSite Senior Member
    Posts: 909

    I knew a bloke, when starting up to give a free cut to any body that could get him regulars customers coditions apply etc, some people got him the odd neighbour etc but one ladys life misson became finding customers for him, she never had to pay for her lawn to be cut and brought him in lots of $$$$ :)

    she was better than all the advertising in the world :clapping:
     

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