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Referral Fees

Discussion in 'Business Operations' started by Rockwell Landscaping, Apr 30, 2011.

  1. Rockwell Landscaping

    Rockwell Landscaping LawnSite Member
    Messages: 20

    Alright, I'm getting ready to change my whole format. I'm a solo who does anything and everything when it comes to landscaping. I want to focus strictly on maintenance and refer my clients to someone else when it comes to installs. Can I expect a referral fee from the company I refer them to if they get the job?
  2. Dr.NewEarth

    Dr.NewEarth LawnSite Bronze Member
    Messages: 1,476

    That does happen.

    Will your demographic support an additional cost of say 10% on what they would normally pay for the job done by some-one who works in a niche market or who normally offers that particular service any-ways?

    The subcontractor could price themselves out of the market right now if you add
    your piece to the pie.

    This works out better when the economy is stronger. Although, you know what your demographic will accept better than me.
  3. Dr.NewEarth

    Dr.NewEarth LawnSite Bronze Member
    Messages: 1,476

    I should add that property management companies get away with adding a handling fee to their clients costs when they call up a roofer, or a plumber etc.

    The PM's already get a set amount for doing the work any-ways, but they have
    worked it out in their industry so that they scrape bonuses for alot of stuff that should be part of their normal work load.

    An HOA has no choice but to accept the bids as they are given by the PM.
    The repair company could be working in partnership with the PM and know the lowest bid to get the job. That's why some HOA get the bids on their own. They can come in lower that way.

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