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Drop the price to get neighbors?

Discussion in 'Lawn Mowing' started by FENNELL, Apr 7, 2001.


    FENNELL LawnSite Member
    Messages: 8

    I just bid on a small lawn for a lady, $20 min job. She seemed a bit reluctant, and said she would call. She also mentioned that she had neighbors who might need me as well. I was thinking of following up with a letter saying I might drop price if she got one of her nieghbors signed up for me as well. Any thoughts on how to handle this?
  2. Eric ELM

    Eric ELM Husband, Father, Friend, Angel
    Messages: 4,830

    Instead of dropping the price, give them a free cut for a referral. Over all it will be better than a lower price. The others will expect a lower price too, they do talk ya know. :)
  3. Randy Scott

    Randy Scott LawnSite Bronze Member
    Messages: 1,915

    I offer a multi-neighbor discount to three or more homes in the same block. People like the idea that they will save some money and it makes THEM generate work for me. It will save me time and money by only unloading and driving to one area. You never want to go too cheap though because then you are stuck. I have had a couple accounts thrown my way this week and I just can't do them at what the other guy did them for. I would rather sit at home and make no money than to work and have it cost me money! :)
  4. KillerShark

    KillerShark LawnSite Member
    Messages: 34

    I would hold firm on your price. It takes the same equipment most of the time to do a small job as it does a large one. I live in southeast Texas and $20 is below the average price. If you do a good job and you're reliable and I'm sure you are both... her neighbors will notice and look you up. Just my two cents
  5. GroundKprs

    GroundKprs LawnSite Bronze Member
    Messages: 1,969

    Offering a lower price for a cluster of clients can be a good strategy if you need the business in the short term. In the long term, you must consider that if only 1 or 2 of these are left, you will probably be stuck with a low paying stop, or have to raise their prices to make the stop profitable. So when one of a trio moves or quits you, the increased price to the other 2 causes them to look elsewhere. Better in long term to have each property priced as an individual stop.
  6. Fantasy Lawns

    Fantasy Lawns LawnSite Bronze Member
    Messages: 1,912

    I'm with Eric ...we offer "free or at cost" services for referral ...... depending on the new job size or income ...vary's the service for free or at cost...

    this WORKS with word of mouth ....if they learn to get you work ....they cut say a free cut or a hedge job or small mulch job at cost ...etc .... being creative is basic foundation of good business
  7. cos

    cos LawnSite Addict
    Messages: 1,253

    I would like eric and others do, offer a free cut or discount on a monthly bill. If you lower your price, then you are only low balling yourself.
  8. jrebeiro

    jrebeiro LawnSite Member
    Messages: 94

    I give a free cut on a referral as long as both accounts have been active for 4 weeks. I don't give out free weeks before I get service out of them because they might drop out for one reason or another... then I lost money on a free service. My customers like the idea of waiting and respect the fact that they wait for their free cut. They really don't care as long as they get free service. I also give a free cut regardless of size of account. Mainly because the $75/wk accounts get me similar lawns. Only once have I had a $50+ account get me a $30 account. Even still I gave the $60 cut free. In the long run $60 is small change when you are getting word of mouth referrals with a signup. You can't go wrong unless you murder their lawn. But if you did that you wouldn't get a referral.

    Just my nickel 'n dime
  9. Roger

    Roger LawnSite Fanatic
    Messages: 5,943

    I have learned my lesson on these deals. Price each one separately. You never know what longevity the multi-property deal will have. Sure, you can offer some service in return for the referral. But, make sure the deal is longer-lasting than one mowing! Many times I've had potential customers approach me while working on a property, "...since you are in the area ..." Clearly, they are looking for a "deal." I will price his/her work as independent. People move too often.

    The same thing is true for a vaction coverage. "Since you are working next door ... we will be gone for three weeks ... zip over to mow ours." I gave away too much on some earlier work, but not now. I will price them independently. In some cases, they see the work, want to become a regular, and I don't want to be stuck with the "deal."
  10. bob

    bob LawnSite Platinum Member
    from DE
    Messages: 4,260

    I have to agree with cos and Eric. Offer them a free referral cut. What happens if you drop you price, get 2 neighbors, and then they bail out after a month. Your stuck with the first customer at a reduced price.

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