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They chose another contractor but referred us

Discussion in 'Hardscaping' started by DVS Hardscaper, Aug 18, 2011.

  1. DVS Hardscaper

    DVS Hardscaper LawnSite Fanatic
    Posts: 6,417

    Back in Feb I had spent a large amount of time designing a pretty nice backyard. I met with the people 2 times and had extensive phone conversations with them. Then they dropped off the face of the earth. Stopped returning my calls. A job that was a min of $30k.

    About a month ago their neighbor calls and wants a patio.

    When meeting with the neighbor I see the other people did get their backyard. We're in Md, like 5 miles from the VA line. They had a Virginia contractor do the work. I checked and they're not licensed to work in Md. And their website is full of pics of patios from belgards picture CD!!!

    On one hand I am mad that they went with a
    Contractor that doesn't even have his own pics. And the joints in the stonework in these people's backyard look terrible! Yet I'm very glad for the referral, I landed an $18,000.00 sale. And the people have been great to work with, very polite, friendly, and they don't bother us.

    I guess I should send them a visa gift card for the referral. Should I do $50 or $100? It's a newer community, and there could be a potential for a couple more leads.
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  2. KrayzKajun

    KrayzKajun LawnSite Fanatic
    Posts: 10,742

    I would go wit the $50. It shows no hard feelings for choosing another contractor and thanks for the referral.
    Posted via Mobile Device
  3. Glenn Lawn Care

    Glenn Lawn Care LawnSite Silver Member
    Posts: 2,647

    I agree with the $50 gift card. Did you charge them for designing the backyard?
  4. zedosix

    zedosix LawnSite Silver Member
    Posts: 2,635

    Is this normal practise to send money gifts because someone referred your name?
  5. tailboardtech

    tailboardtech LawnSite Senior Member
    Posts: 390

    some people do its starting to become a fairly common thing
  6. scagrider22

    scagrider22 LawnSite Bronze Member
    Posts: 1,272

    I always do it, I have one customer that almost never has to pay his maintenance bill because he refers us so often.
  7. DVS Hardscaper

    DVS Hardscaper LawnSite Fanatic
    Posts: 6,417

    Yes. The bigger companies with sales people pay commissions. So I believe in giving a token of appreciation to those who refer us.

    I do this with clients. (but many of them tell me not to send them anything and that they'll just mail it back to me)

    I do this with employees. Yes, there have been 2-3 times where my guys have brought some leads to me. Over the years on this forum I've shown pics of a big wall job, and that was an employee lead.

    And I do it with other contractors. In example I have a buddy thats a high end home improvement contractor. Instead of him subbing work to us, we'll often work it where I give him a decent commission. At one time he landed me a $33k job. I think I gave him $1000 for the lead, which was baked into the job cost. Thats alotta money, but the mentality is that it still works out to be less than had he subbed it to us and put a 15% mark up on it.

    Last edited: Aug 18, 2011
  8. DVS Hardscaper

    DVS Hardscaper LawnSite Fanatic
    Posts: 6,417

    But back to me sending a Visa card to these people.

    How funny will it be when the contractor they DIDN'T USE sends them money, all while they're referring the guy that actually did the work and he sends them NOTHING!

    I agree with capping at $50.00. But on the other hand when these people receive $100 in the mail that they're not expecting.......it's going to make ONE HELL OF AN IMPRESSION! And now you can see where the DVS in my user name comes from :) Many years ago when I just graduated highschool another maintenance contractor told his employees "don't talk to Andrew Hardscape, he's sneaky". And I've always remembered that and I try to live up to his claim :cool2:

    Last edited: Aug 18, 2011
  9. gammon landscaping

    gammon landscaping LawnSite Senior Member
    Posts: 550

    sorry guys but i feel it is wrong to pay for work. the gift card maybe at Christmas if they send a bunch of work. The fact that you bid a job lost it do to price and then they told the neighbor to call you; says that you did everything right. By sending a gift card it is almost rude in my mind. Seems as you are saying you should have used me, look how great i am and i can do this cause i make more than that hack you used. But this is just my opinion.
  10. wurkn with amish

    wurkn with amish LawnSite Senior Member
    Posts: 662

    local dentist gives $25 dollars for every refferal. what dentist do you think I'm telling everyone about? Not the guy i've never been to thats for sure.

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