Lawn Care Business Forum Lawn Care Business Book Lawn Care Business Blog Lawn Care Software
Home Forum Contract & Flyer Templates Blog Software Videos Podcast Calculators / Estimators Store Mower Review Design It Yourself Lawn Business School

Go Back   GopherHaul Landscaping & Lawn Care Business Marketing Forum

» Welcome to the Gopher Lawn Care Business Forum
GopherHaul Landscaping & Lawn Care Business Marketing Forum

GopherHaul Landscaping & Lawn Care Business Marketing Forum (http://www.gopherforum.com/forum-index.php)
-   Lawn Care Marketing & Post your marketing material for review! (http://www.gopherforum.com/forumdisplay.php?f=15)
-   -   How's this for a referral program? (http://www.gopherforum.com/showthread.php?t=10786)

markty 01-30-2010 04:36 PM

How's this for a referral program?
 
Refer one new customer to and receive a 20% discount on your lawn mowing services for the remainder of the calendar year.*

Refer a Second new customer to and receive an additional 20% (40% Total) discount on your lawn care for the remainder of the calendar year.*

Refer a Third new customer to and receive an additional 20% (60% Total) discount for the remainder of the calendar year.*

And so on up to Free Lawn Care

* New referrals must sign up for yearly service. If they cancel the discount is voided.

There may be an easier way to word this.

SuperiorPower 01-30-2010 06:02 PM

Quote:

Originally Posted by markty (Post 63872)
Refer one new customer to and receive a 20% discount on your lawn mowing services for the remainder of the calendar year.*

Refer a Second new customer to and receive an additional 20% (40% Total) discount on your lawn care for the remainder of the calendar year.*

Refer a Third new customer to and receive an additional 20% (60% Total) discount for the remainder of the calendar year.*

And so on up to Free Lawn Care

* New referrals must sign up for yearly service. If they cancel the discount is voided.

There may be an easier way to word this.

Personally, I think that is by far too much of a discount. Lets do the math:

Average total yearly contract: $750 (wild guess)

Customer A: Refers 5 new yearly contracts, Customer A1, Customer A2, Customer A3, Customer A4, and Customer A5. Now you have given him $750 out of YOUR pocket. Out of these 6 yearly contracts have a value of $4500 but you are only bring in $3750 for the entire year from these 6 contracts. Now you will have to make a lot of profit from these 5 to get to actually make and true profit.

Customer A1-A5: Lets go out on a limb, all 5 of the referred customers from "Customer A" all bring you 5 customers of their own. You are now cutting 26 yards and only getting paid for 19. You are now giving away $4,500 through out the entire year. Your net income (not net profit) is $15,000 rather than the value of the contracts, $19,500.

Now, lets take a look at your expenses:
Trimmer: $300
Mower: $4500
Blower: $500
Truck: $10,000
Trailer: $1,000
Fuel (for truck, mower, and trimmer): $1000

The above costs are purely a guess and may be way out of line but its a general idea. Sure, all of the equipment should last you several years and you may already have the machines. But consider that that is a LOT OF MOOLAH to give away. I guess I have to ask, are you making more than $150 PROFIT from each customer? If so, how much more? Because essentially, you are paying the referrer $150 per yearly contract. Can you live off the $600 per year net income after you have paid the business related bills?

If you want to do something like that, consider using a smaller % like 5% per contract or 10% per 3 contracts, etc. That would still be $37.50 per referral. I would also make sure that the discount does not carry on for year after year at full value. Truth of the matter is, if you do a good job, your customers will already refer their friends. Another thought is to apply the discounts only to additional work like fall cleanups, mulch jobs, etc. But even then, you need to be cautious of the value of the discount. I would rather go with a $$ amount rather than a %. Example, "Get $25 off your fall cleanup for every yearly lawn service contract you refer, up to a free fall cleanup."

This is just my thoughts, from an outside point of view.

Let us know what you decide,
Eli

markty 01-30-2010 06:23 PM

So what is a referral program that actually WORKS?
 
Thanks for your reply. Let me qualify by saying that I am a NEW start up. One man show. Small to medium residential lawns. I will not have a truck or a 4500.00 mower to start with, sorry to say. Not everyone can go out and get a ton of gear to start with.

I got this from another lawn care company website located elsewhere in North America. So if that is too much, what is a referral program that works?

Steve 01-30-2010 11:04 PM

Well you could experiment with something simple at first. Each referral will get you a $10 or $20 gift card?

Or something like that.

Try it out, see what kind of response you get. You can always scale it up or down as you need to.

SuperiorPower 01-30-2010 11:28 PM

Quote:

Originally Posted by Steve (Post 63904)
Well you could experiment with something simple at first. Each referral will get you a $10 or $20 gift card?

Or something like that.

Try it out, see what kind of response you get. You can always scale it up or down as you need to.

I agree. I think starting out small is a great idea. This will give you the opportunity to make sure you aren't killing your profits.

justin_time 01-31-2010 12:01 AM

How about if they get you 5 referrals, they get $25 gift card, if they get you 10, they get a $50 gift card

Steve 01-31-2010 12:08 AM

We are all consumers.

Ask yourself, when was the last time you took part in any referral program.

I can't think of the last time I did because I just feel that no matter what, there will be too many hoops to jump through and I will never get what ever it is they are offering.

The more complicated the process seems, the less inclined anyone is to use it and the less effective it is for you.

When you are crafting such a referral program, think for a moment if it would inspire you to take part.

markty 01-31-2010 07:55 AM

Gotcha. You know I can't even think of ANY referral programs period.

So keep it simple.

Being a new start up I am trying to be creative in attracting new clients and set myself apart from competitors.

Surely some of the experienced and successful business owners on this forum have had success with a simple referral plan.

Thanks,

Mark

markty 01-31-2010 09:17 AM

In further researching referral/reward programs that work it is suggested that rewards to customers for referring more customers should be a gift. Gift cards, gas cards, movie cards, etc. These are tax deductible. Discounts on your services are not.

Also, the program should be explainable in one sentence.
"Refer a friend, get a gift". Yes you may then list the gifts.
1st referral= movie gift card
2nd referral= dinner gift card
and so on

As much as some of us guys may not like to admit this, the woman of the house is responsible for most of the purchases/spending that a household makes.(come on guys, you know it's true), So gifts should be sent to her so that she talks to her friends(other females) who will be more likely to make a positive purchasing decision in regards to obtaining your services.

justin_time 01-31-2010 01:12 PM

Quote:

Originally Posted by markty (Post 63949)

As much as some of us guys may not like to admit this, the woman of the house is responsible for most of the purchases/spending that a household makes.(come on guys, you know it's true), So gifts should be sent to her so that she talks to her friends(other females) who will be more likely to make a positive purchasing decision in regards to obtaining your services.

I can't really say much, i'm a single man ! lol


All times are GMT -5. The time now is 11:30 AM.

Powered by vBulletin® Version 3.7.1
Copyright ©2000 - 2016, Jelsoft Enterprises Ltd.
(C) 2011 Riggs Publications - Terms of use & Privacy Policy

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
Help Spread the word...
Sprinkler Buddy
12-02-2015 08:41 AM
Today 08:19 AM
by Sprinkler Buddy
19 1,301
back surgery
Bradcook21
01-28-2016 08:51 PM
Today 01:18 AM
by Steve
15 385
Howdy Yall !!!
B&C
Yesterday 10:06 AM
Today 01:05 AM
by Steve
1 30
hello
2menandmowers
Yesterday 07:32 AM
Today 12:53 AM
by Steve
1 30
Best two stroke oil
Greg_TopYardServices
02-08-2016 07:53 PM
Today 12:51 AM
by Steve
8 124
Hello everyone!!!
1newkirk05
02-09-2016 03:16 PM
Yesterday 04:05 PM
by jrs.landscaping
7 127
Tine Rake Detaching vs...
wigglesworth
02-09-2016 05:32 PM
02-09-2016 07:43 PM
by Steve
1 49
Finding open bids?!?
C&DPropertyManagement
02-07-2016 01:48 AM
02-09-2016 07:11 PM
by Steve
3 118
hello all
romanlandscape
01-29-2016 03:46 PM
02-07-2016 10:20 AM
by Bradcook21
6 224
Lawn Care Book Ranked #1
Steve
02-06-2016 12:36 AM
02-06-2016 12:36 AM
by Steve
0 105
Hi
Sellers Lawn Care
02-02-2016 01:48 PM
02-05-2016 08:03 AM
by Sellers Lawn Care
4 171
Collecting payments from...
Niagara Mowing
02-03-2016 05:21 PM
02-05-2016 08:00 AM
by Niagara Mowing
7 225
SMS assist? The good,...
jcurr33
01-27-2016 10:24 PM
02-04-2016 11:53 PM
by Steve
5 258
I need some help...
Anise
02-04-2016 01:39 PM
02-04-2016 11:51 PM
by Steve
3 134
Customers dodging the...
Rocky
11-06-2015 06:22 AM
02-04-2016 03:41 AM
by C&DPropertyManagement
7 1,507
Offering a "Trial"...
wybut076
02-01-2016 06:27 PM
02-03-2016 08:26 PM
by Just for Cuts
7 257
Iowa Caucus Predictions?
Steve
02-01-2016 06:31 PM
02-03-2016 12:40 AM
by Steve
1 113
Laying White River Rock
DiamondLawnCare
02-01-2016 08:27 PM
02-03-2016 12:17 AM
by Steve
1 135
Networking for a...
jcurr33
01-30-2016 09:26 PM
02-01-2016 06:27 PM
by Steve
4 209
Customer giving a 1099?
apmAkron
01-27-2016 07:22 PM
01-31-2016 08:55 PM
by Chilehead
6 272
happy to be here
redrobin
01-29-2016 10:45 AM
01-31-2016 08:44 PM
by Steve
1 149
Thought's on an "E-Z...
jcurr33
01-27-2016 10:48 PM
01-31-2016 08:38 PM
by Steve
4 244
Changes
Knaubone
01-30-2016 10:56 PM
01-31-2016 08:31 PM
by Steve
1 136
Thoughts on this Exmark...
googus
01-28-2016 04:24 PM
01-28-2016 08:09 PM
by Chilehead
1 156
1st year in
jcurr33
10-18-2015 05:07 PM
01-28-2016 07:49 PM
by Chilehead
6 4,149
Need opinion on zero...
Mr. Mow
01-24-2016 05:42 PM
01-28-2016 07:41 PM
by Chilehead
10 372
Opinion on liquid vs...
Bradcook21
01-25-2016 02:03 PM
01-28-2016 07:38 PM
by Chilehead
9 319
Finding property size
Gageslawncare
01-25-2016 11:08 AM
01-28-2016 12:05 PM
by Gageslawncare
10 331
Tiger TG 2661 Commercial...
lawnman1959
01-25-2016 08:12 PM
01-27-2016 07:57 PM
by Just for Cuts
5 258
Spouse as a dependent?
Steve
01-26-2016 01:51 AM
01-27-2016 10:44 AM
by Chilehead
3 213
Hello All
C&DPropertyManagement
01-23-2016 12:21 PM
01-26-2016 01:24 AM
by Steve
1 186
Credit Cards - What's in...
Shark1611
06-16-2015 04:04 PM
01-23-2016 03:43 PM
by C&DPropertyManagement
17 7,699
Start My Own Business?
mowandblow1980
01-12-2016 08:43 PM
01-19-2016 07:00 PM
by Steve
12 657
State of the nation 2016.
Steve
01-12-2016 12:05 AM
01-19-2016 06:57 PM
by Steve
6 397
little help? first big...
Brian3137
12-31-2015 12:39 PM
01-19-2016 06:54 PM
by Steve
23 1,104
Hi everybody...
Greg_TopYardServices
01-14-2016 08:10 AM
01-19-2016 02:47 PM
by SC93
12 467
What's your next...
Steve
05-15-2015 12:54 PM
01-17-2016 08:48 PM
by Homeland unlimited
25 7,936
Plow controller problems
scaypa
01-12-2016 05:49 PM
01-16-2016 10:46 AM
by scaypa
4 304
Say Hello !!!
Steve
03-19-2007 12:18 PM
01-15-2016 07:23 PM
by tannerduncan
1,244 428,178
Pricing issue
Mr. Mow
07-07-2015 07:15 AM
01-15-2016 11:20 AM
by djlandscaping06
23 5,432
New College Course
Dr. D
01-14-2016 01:45 PM
01-14-2016 05:35 PM
by Steve
1 220
Yelp
Shark1611
01-13-2016 10:00 AM
01-14-2016 05:32 PM
by Steve
4 277
New to the forum from...
Doug Green
01-12-2016 12:23 PM
01-14-2016 08:34 AM
by Doug Green
2 261
Facebook advertising
Just for Cuts
12-13-2015 08:49 AM
01-13-2016 10:20 PM
by Just for Cuts
12 946
Choosing local business
Doug Green
01-12-2016 12:29 PM
01-13-2016 06:12 PM
by Steve
2 426
4 Seasons Landscaping LLC
Doug Green
01-12-2016 12:56 PM
01-12-2016 12:59 PM
by Doug Green
1 281
Read more about these lawn care business marketing categories.
General Business:
GopherHaul, Podcast
How to Estimate - Services To Offer:
Aeration, Apartment / Condo, bed edging, Color Change Plantings, Dethatching, Edging, Fall Leaf Cleanups, Foreclosed Homes, Gutter Cleaning, Hardscaping, Hedge Trimming, Home Safety Inspection, Irrigation, Landscape Project, Lawn Mower Repair, Mowing, Mulch Jobs, Outdoor decoration, Parking Lot Cleanups, Pet Waste Removal, Pressure Washing, Property Management, Snow plowing, Stump Grinding, Tree Removal
How to Estimate Jobs:
Lawn Care Business:
Barter, Bikini Lawn Care, Business Failure, Business loan, Business Plan, Debt, Debt Collection, Estimate or Proposal Form, Franchise, Fuel surcharge, How to sell, Insurance, Job Tracking, Lawn Care Contract, Lawn Care Customer Survey, Lawn Care Uniform, Lawn Care Videos, Operational Costs, Overhead Costs, Prepay, Pricing, Start up, Tiger Time Lawn Care,
Lawn Care Business Books:
Lawn Care Customers:
Buying customers, Commercial Customers, Customer Retention, How to get, Residential Customers
Lawn Care Employees:
1 Man Lawn Crew, Bonus Pay, training, Your First Employee
lawn care equipment:
bed edger, Lawn Care Truck, Leaf Sweeper, Mower, New Arrival, Trailer, UltraVac
Lawn Care Marketing:
Billboard, Brochure, Business Card, Community Projects To Promote Your Business, Coupons, Cross Promotion / Synergy, Direct Mail, Door hanger, door to door, Free Giveaway Contest, Free Lawn Care Flyer Template, Gift or Discount Cards, home show, Internet, Lawn Care Business Sales Letter, Lawn Care Logo, Lawn Care Marketing, Lawn Care Truck & Trailer Signs, Lawn Care Website, Lawn Signs, Magazine Ad, Magnets, Mailing list, Marketing on Craigslist.com, Newspaper Ads, Parade, Postcards, publicity stunt, Referrals, Review My Lawn Care Marketing Material, t-shirt, Welcoming Kit, Word Of Mouth
Seasonal Promotion Ideas:
4th of July, Armed Forces Day, Christmas, Election Day, Fall, Halloween, Memorial Day, Spring, Summer, Valentine's Day, Veteran's Day, Winter:
Software:
Estimation Software, Landscaper Software, Landscaping Business Software, Landscaping Estimate Software, Landscaping Software, Lawn Care Business Software, Lawn Care Estimating Software, Lawn Care Software, Mowing Software
Uncategorized:
Video:
Website:
Search Engine Optimization
» Lawn Care Business Discussion Categories
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 11:30 AM.


(C) 2011 Riggs Publications - Terms of use & Privacy Policy

All times are GMT -5. The time now is 11:30 AM.

(C) 2011 Riggs Publications - Terms of use & Privacy Policy