What would you pay for a qualified mowing lead/contract?

Discussion in 'Lawn Mowing' started by roscioli, Jul 4, 2003.

  1. roscioli

    roscioli LawnSite Senior Member
    Posts: 749

    In terms of mowing price, what would you pay for a lead? If it would save you the time of telephone calls, estimates, etc... The account would be ready to go and mow.
    1 X mowing price?
    2 X mowing price?
    3 X mowing price?
    4 X mowing price?
    more?
    PLEASE spare me the useless comments (i.e. "i'm not expanding, so wouldnt pay anything for a new lead", or "i dont trust someone elses prices, so would give my own".. "blah blah")
    Also, written contract included with your business name on it.
    Thanks guys, Mike
     
  2. roscioli

    roscioli LawnSite Senior Member
    Posts: 749

    also, I should include that this thread is not selling any leads or anything of the sort, I am just curious as to what a lawn maintenance company might pay for a qualified lead.
     
  3. Turf Medic

    Turf Medic LawnSite Bronze Member
    Posts: 1,073

    Just curious, are you looking to start a new business, referral service for LCO's.
     
  4. roscioli

    roscioli LawnSite Senior Member
    Posts: 749

    Turf Medic- I am considering it, though havent sat down with paper and pencil to figure out a business plan... or if it might even be profitable. Surprised nobody has answered yet.
     
  5. Turf Medic

    Turf Medic LawnSite Bronze Member
    Posts: 1,073

    I have often thought that it might be a good idea. If you were to set something up where you took care of the scheduling, billing, sales, and then keep a percentage of the total. I read an article in one of the trade magazines about a guy that has a very large snow removal business, but it sounds like he primarily gets the contracts, sets up the schedules, and then calls the subcontractors when the snow needs moved.
     
  6. fblandscape

    fblandscape Banned
    Posts: 776

    Mike, I'm just guessing here, but I would have to say that that would depend on what kinds of work the client wants besides just cutting the grass. If the person wants full maintenance; mulching, fert, aeration, mowing, clean-ups, plowing, etc. Why would you give it away for the same price as an only mow and blow contract?
     
  7. mower_babe

    mower_babe LawnSite Senior Member
    Posts: 790

    I don't know if this is what you are looking for, but we pay $50.00 to our current customers for a referral that becomes an account. We pay $20.00 to our employees if they refer. Also, I am in tight with another LCO that is slowly phasing out and I bought 2 accounts from him last year-excellent accounts-condos. I paid around half of what a season averaged. But I made both accounts sign a 2 year contract with me before I agreed to it. I also set it up that I paid this LCO a weekly fee for the mowing season, made life a little easier. We have a gentleman's agreement that we will be doing business exclusively again.
     
  8. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    As strange as this might sound, I would be inclined to pay more for it as the value/price of the contract goes up. A 25K account I would pay X dollars...50K account, 2X dollars and so on.

    As for specific numbers on a much smaller account (say, 2K per year), I think a month's mowing for a year contract is very fair.
     
  9. roscioli

    roscioli LawnSite Senior Member
    Posts: 749

    Thanks guys for the responses... I am talking lower end accounts here, just residential mowing accounts. If they want more, I will consider pricing it (if I can agree upon a structure with the landscaper I happen to be bidding for). So far the responses have been good, but limited.. I wonder if that is because of a lack of interest (ie, wouldnt pay for accounts) or fear of answering incorrectly because of a lack of experience.
     
  10. yardboyltd

    yardboyltd LawnSite Senior Member
    Posts: 323

    You can take it however you want it, but my opinion that there isn't much of a market for such a service. Perhaps for some people new into the business who really need accounts but dont' know how to get them or are looking to expand really fast. Furthermore I think a LCO out in the field is going to have more success pulling in potential customers than whatever method you could offer mile away. I could see where the idea, if done in the right manner could have some success, but I think the time and energy involved in such a business could reap more benefits in some other business idea. I don't think your going to be bringing in that much unless you take a huge risk (money). Thats just my opinion.
     

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