Symbiotic Business Relationships

Discussion in 'Business Operations' started by Az Gardener, Mar 9, 2007.

  1. Az Gardener

    Az Gardener LawnSite Gold Member
    Messages: 3,899

    I have come to the point in my business that it is time to expand. I miss the influx of new clients that a design build maintain firm brings in. I want no part of the design build portion so I am looking for a design build firm that can feed me clients.

    I have one company in mind we are not friends, don't know each other, but we have the same clientele. I currently maintain two of his design install clients. He has a small maint division but they are very high priced and not well trained. I know he only maintains a small fraction of the homes he designs and installs.

    So now the question. Do any of you have this or some variation of this type of relationship? If so how do yo work the return compensation?

    The way I see it if all I did was give him a good company to refer to that was not a direct competitor it would be to his advantage. I could offer him a small % for all new accounts.
  2. bullethead

    bullethead LawnSite Senior Member
    from Texas
    Messages: 273

    I think it has to be a 2-way street with compensation involved - or one or both of the parties involved will let it die a slow death. If you throw him a construction gig - you get a % of the gross revenue of the project (i.e. 1-2%, he can build it into his price anyway) and if he lands you a maintenance job you pay him a referral fee.

    Go talk to him, also see if he wants to sell his maintenance biz so he can focus on what he does best, or maybe he would want to buy you out and take you on to handle the maint side of his biz - what's the worst thing that can happen (he says -"no", bfd). Further, at a minimum you have established a rapport with this guy, which is always a good thing in my opinion. I struggle with the same issue (I am in the other guy's position and I would love to buy more high end well run maint accounts) Bueno suerte.
  3. Az Gardener

    Az Gardener LawnSite Gold Member
    Messages: 3,899

    You and I are on the same page except for the him buying me out part. I dropped him a letter today along with my credentials and our monthly newsletter. Will see where it goes. I don't know a design install contractor around that doesn't see its maintenance as anything but a headache, but it is a necessary evil for that line of work.
  4. YardPro

    YardPro LawnSite Gold Member
    Messages: 3,570

    i hope it works out well for you ...
  5. PTP

    PTP LawnSite Bronze Member
    from Tulsa
    Messages: 1,398

    This is a little off topic but from what I know of you, you are taking some sort of mentoring course in business or something like that. From this post and others, I can see you thinking like a business man and not like someone who is simply mowing for beer money.

    Best wishes to you.

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