If I came to your town and brought you business...

Discussion in 'Starting a Lawn Care Business' started by CollegeGuy, May 26, 2008.

  1. CollegeGuy

    CollegeGuy LawnSite Member
    Messages: 5

    I've rapidly started 2 lawn care businesses in 2 cities and really enjoyed the advertising, talking to potential customers and bringing in new accounts.

    My question to you all is....

    If I came to your city and brought in 100 new accounts in 2 weeks how much would you pay for them?

    These accounts would not be contracted, they would be customers who recieved your business' flyer (which I would design for you) at their door, saw your sign (which I would design for you), or perhaps I walked into their business and sold them. They would be 95% residential lawns and all accurately estimated at your businesses prices.

    How much would that be worth? I would pay for all the advertising expenses, flyers, signs, labor, business cards, everything, just how much would these customers calling you for service be worth?

    I'm a soon to be business school graduate and I'm considering doing this for lawn care businesses wanting to grow at the beginning of the next mowing season (March-May).
  2. MowHouston

    MowHouston LawnSite Bronze Member
    Messages: 1,012

    Its not so much as how much we'd be willing to pay for it or what a fair price would be because we aren't the ones doing the work or using the materials in your idea.

    I think a better way to approach this question is to figure out how many hours you would be putting into this, include your material expenses, and other costs and throw a price on the table and see if we think it is a good deal or not.

    Some lawn guys can get 100 after two seasons, some it takes more. How they do it and how much they spend getting those accounts is going to differ greatly by how they advertise and where they live.

    I dont even want to begin to get into advertising costs, thats a whole separate discussion.
  3. CALandscapes

    CALandscapes LawnSite Senior Member
    Messages: 946

    What about a percentage of each new customer?

    100 customers @ $200.00/month each = $20,000/month; $240,000/year.

    Figure out what percent of that would enable you to provide materials, your labor, etc. in addition to whatever profit you'd like to make.

    Then you may be able to calculate a formula to use in order to market your services to LCo's..
  4. CollegeGuy

    CollegeGuy LawnSite Member
    Messages: 5

    I'd like to know how much you all would be willing to pay, not how much I should charge.

    What I would like to know is how much would you pay for 100 new customers calling you asking for your services this year? How much is it worth to you as the business owner?

    THEGOLDPRO LawnSite Fanatic
    Messages: 5,222

    better question is how do we know how many customers we would get??? you cant say put a price on how many customers "COULD" call you that wouldent work. what would ned to happin to put a dollar amount on it would be to have an established list of customers who are on contract for the years mowing so you dont end up losing them all after you pay for them then take em over.
  6. Sydenstricker Landscaping

    Sydenstricker Landscaping LawnSite Bronze Member
    Messages: 1,281

    This sounds like that service magic referral thing. Basically you just pay a certain amount up front to register, then pay a small percentage or what not for referrals. But there is never a guarantee that the referral will turn into a job.
  7. CollegeGuy

    CollegeGuy LawnSite Member
    Messages: 5

    Okay how about this. As an LCO, would you pay 50% of your new revenue which I bring in to you for the next 3 months? I would be working as an advertising agency bringing work to you. As an LCO is that about correct, would you pay a higher %? Want a lower %?
  8. fool32696

    fool32696 LawnSite Senior Member
    Messages: 993

    Call aren't worth much, I get a lot of price shoppers and people not willing to pay decent prices. Now it would be worth something to me if you brought in 100 customers willing to pay for a month up front and have year round 12 month service (billed at 1st of every month). I highly doubt that you can promise this not having any idea about a company's pricing structure. I do quality work when I say I will and charge a premium for it and it scares away the price shoppers that you get in an "ad campaign". I wouldn't be willing to have you do work for a flat fee. I think commission would work better (a $100 a month mow and blow is very different from a $300 a month high end property with full landscape maintenance. I'd be willing to sign all of the first months checks over to you. So to answer your question if you got me 100 clients at my minimum weekly mowing price of $100 then you'd have $10000 for your 2wks work. If this sounds fair, when do you want to come down to Gainesville?

    THEGOLDPRO LawnSite Fanatic
    Messages: 5,222

    would depend i guess. id shoot for less then 50% prolly but thats me.
  10. bohiaa

    bohiaa LawnSite Fanatic
    Messages: 5,220

    I would give you 25% of a yearly profets on a deal like this....

    However. if you are NOT true to your word. "with in 2 weeks" I will subtract from the percentage. and I have the right to turn down any customer I choose....

    now, lets see some action

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