Retention Rates

Discussion in 'Lawn Mowing' started by OnMyOwn, Apr 3, 2006.

  1. OnMyOwn

    OnMyOwn LawnSite Senior Member
    Posts: 372

    My 2006 summary is (57) billable properties with 94.3% retention from last year.

    How is everyone else doing?
  2. Evergreenpros

    Evergreenpros LawnSite Bronze Member
    Posts: 1,155

    About 80%. If it goes higher I raise prices and advertise more to get more profitable customers. PITA customers don't bother me at all because they will be replaced in time. I just smile and say 2 weeks. The more complaints I get the more I advertise and the more estimates I do which results in more money for me. Can't take this business personally, it's just business.
  3. chriscraft

    chriscraft LawnSite Senior Member
    Posts: 390

    Thats incredible, We lose 5% to peope thqt dont pay for last years bill,2-3% dies every year, and the average person moves every 5 years so we lose 20% to moving, but pick up maybe 1/2 of them cause they still stay local. We are probabally in the 80% also but we only lose 5% maybe to low ballers or unhappy customers.
  4. Jpocket

    Jpocket LawnSite Silver Member
    Posts: 2,278

    We lost i'd say about 5%...I noticed that number gets bigger whren your business gets bigger. Im sure the guys with 200-300 accounts lose like 20 or 30 every year. But they im also sure they pick up 50
  5. one man gang

    one man gang LawnSite Fanatic
    from N. In.
    Posts: 5,811

  6. 1MajorTom

    1MajorTom Senior Moderator
    Posts: 6,074

    We lost 3 so far this year, one moved to florida, one died, and one quit because she didn't like her $3 price increase. We picked up 9 new ones so far.
  7. LwnmwrMan22

    LwnmwrMan22 LawnSite Platinum Member
    Posts: 4,372

    I dropped one, one that was about 10% of my gross, because they didn't make a decision before April 1st.

    Other than that, 100% retention, even commercials that changed owners and / or price increased.
  8. ODwyerPW

    ODwyerPW LawnSite Member
    Posts: 72

    Residential customers, we are at about 85%, mostly by choice as we've gotten rid of difficult customers or difficult properties.

    Commercial customers and managed properties, retained about 30%. That's right. We got our heads handed to us by lowballers this year. Folks bidding less than half our price. Didn't see it coming. We're working hard to restore the volume and have garnered some new, much nicer accounts. However, overall, I expect our commercial/managed properties to be down by $150K this year. That's okay, because we are making the adjustments necessary to be profitable at this volume. I definitely have fewer employees this year.

    Toughest year I've had in business so far.
  9. procut

    procut LawnSite Bronze Member
    Posts: 1,853

    I'm glad to say I have a pretty good retention rate. At least 85%.

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