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 > Business > General Business Discussions

General Business Discussions A place to talk about general business discussions.

Free Promotion vs. Profit


General Business Discussions

A place to talk about general business discussions.
Reply
 
Thread Tools Search this Thread
  #1  
Old 06-19-2006, 04:44 PM
tiedeman
Guest
 
Posts: n/a
Default

So many companies offer free services or a type of free promotion; such as free lawn mowing to service men, free aeration with a service contract, free fertilization, senior discounts, 5% off it paid in full, 3% off the bill if paid before a certain date, etc.

But, when does it start to go too far that it cuts into your profit? I mean, you can only offer free services or discounts for so long before you start to feel the pinch.

I guess what I am asking is, when do you draw the line and say enough is enough, we need to make a profit now, and not be a hand out company?
Reply With Quote

Stop guess-timating. Learn how to estimate and make money! $$$
Mow Time Estimator Lawn Care Price Estimator Mulch and Topsoil Calculator Snow Plow Estimate Calculator


  #2  
Old 06-19-2006, 09:03 PM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 38,039
Rep Power: 10
Steve has disabled reputation
Default

Lawn care business tipsLawn Care Business Book
Here is my thought. What percentage does your company spend on marketing? When you are newer and don't have too many customers, you won't have too much word of mouth so you will probably be spending more. Ironically, this is a time when you least can financially afford to spend money on advertising too. It's another catch-22 of business.

One of the things you have at your disposal is you and your services. If you have more time to spend than money, why not leverage your time. Conserve your cash and offer some freebies here and there. Plan them out and calculate how much it is costing you. You can track this. How much are you spending? 10%? More? Less?

With your freebies, are you able to transform them into free advertising from others? Has your act of goodwill created a buzz? Have you gotten free press?

As you fill up your schedule, you can cut back on it and replace that with other forms of advertising.

Something to keep in mind, there are opportunity costs.
Opportunity cost is a term used in economics to mean the cost of something in terms of an opportunity forgone (and the benefits that could be received from that opportunity), or the most valuable forgone alternative. For example, if a city decides to build a hospital on vacant land that it owns, the opportunity cost is some other thing that might have been done with the land and construction funds instead. In building the hospital, the city has forgone the opportunity to build a sporting center on that land, or a parking lot, or the ability to sell the land to reduce the city's debt, and so on.
Based on this, it is costing you to not fill your schedule. For every hour you want to be out working and are not, it is costing. Maybe not as much as giving away free service but maybe it is. Maybe it's even more when you project it out over time.

I think it might even be better to not offer your services at a discount to certain groups because it could devalue the service. Freebies, I don't feel devalue your services because they appear to be offers of good will.

What are your thoughts?
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
  #3  
Old 06-19-2006, 09:09 PM
kc2006 kc2006 is offline
Members
 
Join Date: Apr 2005
Posts: 424
Rep Power: 12
kc2006
Default

TG said what I was going to. When your a new company it's easier to offer some incentive to potential customers. When you have a full schedule or almost full schedule it would be more benefitial to the company to just spend the money on advertising I think. You'd be cutting into potential work time then, where as if you have hardly any schedule or half a schedule, you have free time to beable to do discounted/free work more. Any revenue is better then no revenue when your fresh.

I didn't offer any free work or discounts this year except 5% discount for commercial accounts to prepay for the year. None of them went for that. I've never had people give me the coupons for 10-15% off mulch installs, never had a customer ask about the 2 free cuts when they signed up. Only thing I've had question about is the refferals. Coupons seem like a waste to me from past experience so I don't offer them.
__________________
\"Every strike brings me closer to the next home run\"
Reply With Quote
  #4  
Old 06-20-2006, 07:08 AM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 38,039
Rep Power: 10
Steve has disabled reputation
Default

Have you thought of further promotions you would like to offer this year?

If so, what have you been thinking?
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
  #5  
Old 06-20-2006, 02:09 PM
tiedeman
Guest
 
Posts: n/a
Default

I am currently done with any more type of promotions. Every thing slows down here until August/September again.

I really don't know if I am going to offer any other type of promotions for the future. I am taking the business is an amazing direction...yet it will be probably one of the hardest things to do
Reply With Quote
  #6  
Old 06-20-2006, 09:31 PM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 38,039
Rep Power: 10
Steve has disabled reputation
Default

Quote:
Originally Posted by [b
Quote[/b] ] I am taking the business is an amazing direction...yet it will be probably one of the hardest things to do
What do you mean?
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
  #7  
Old 06-20-2006, 09:55 PM
tiedeman
Guest
 
Posts: n/a
Default

In true time, I will let you guys know about it. I am still working out the fine details, but I hope to start the direction 100% in July. I have been doing a lot of testing with it the last 2 to 3 weeks, with not only great results for the customer, but great results for me as well.
Reply With Quote
  #8  
Old 06-21-2006, 05:32 AM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 38,039
Rep Power: 10
Steve has disabled reputation
Default

This sounds exciting! Keep us posted.
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Forum Jump

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
fert/lawn programs
joshp
Today 10:43 AM
Today 10:43 AM
by joshp
0 1
Landscaper taking on odd...
WarriorLandscapingCAN
08-07-2016 06:57 PM
Today 10:31 AM
by joshp
7 622
fliers
joshp
08-19-2016 03:23 PM
Today 10:20 AM
by joshp
7 411
Review of our lawn care...
Lawnline
07-12-2016 06:40 PM
Yesterday 10:51 AM
by Steve
7 1,818
Start My Own Business?
mowandblow1980
01-12-2016 07:43 PM
08-25-2016 12:55 PM
by Steve
19 2,145
Looking for new host
Just for Cuts
11-26-2015 06:58 AM
08-24-2016 09:05 PM
by Stephen Alberts
10 1,911
Facebook advertising
Just for Cuts
12-13-2015 07:49 AM
08-24-2016 08:59 PM
by Stephen Alberts
14 13,094
Breaking into commercial...
SGL1
08-19-2016 07:02 AM
08-24-2016 10:12 AM
by mowandblow1980
7 425
Snow Plow
acrajchel
08-17-2016 10:21 AM
08-22-2016 11:21 AM
by Steve
5 404
Quarter Acre Woodland...
ew411
08-16-2016 06:50 AM
08-18-2016 12:25 PM
by Steve
4 390
Bidding Bushhogging
acrajchel
08-15-2016 11:52 AM
08-17-2016 05:32 PM
by acrajchel
4 381
Hello From the Florida...
KevinShuman
08-15-2016 08:57 PM
08-16-2016 01:52 PM
by SC93
2 379
I'm making stupid money...
WarriorLandscapingCAN
08-07-2016 07:07 PM
08-16-2016 12:42 AM
by SC93
5 676
A quick Intro
BLE
08-14-2016 05:17 PM
08-15-2016 10:54 AM
by acrajchel
2 375
New Customer - Gettting...
acrajchel
08-05-2016 05:00 PM
08-15-2016 10:52 AM
by acrajchel
4 646
helping out a friend set...
Doug D
08-13-2016 11:33 AM
08-15-2016 09:45 AM
by Steve
1 388
Small bed job
Bradcook21
08-09-2016 09:52 PM
08-10-2016 03:51 PM
by Steve
1 507
Hello from NoVa
jtwlawn
08-03-2016 11:20 AM
08-09-2016 10:45 AM
by jtwlawn
4 643
How much to charge for...
jymie
03-31-2013 05:59 PM
08-08-2016 04:33 PM
by Steve
27 6,647
Needing a website built
burtle
06-17-2015 09:02 AM
08-07-2016 10:21 AM
by Just for Cuts
18 19,815
New Site Hows it look
Infinitelawn
03-16-2015 10:32 AM
08-07-2016 08:37 AM
by Lawnline
8 11,286
Hey guys! Greetings from...
thegardener
08-05-2016 05:45 AM
08-05-2016 03:26 PM
by Steve
1 552
First Time Bidding-Need...
capitallawncrew
08-01-2016 08:30 AM
08-03-2016 09:52 AM
by Steve
3 685
Show us your stripes
Just for Cuts
05-21-2015 03:07 PM
08-01-2016 08:28 PM
by ExclusiveLawns
7 3,792
String trim BEFORE mow...
Mr. Mow
04-12-2015 08:13 AM
07-31-2016 10:36 AM
by joshp
13 5,938
» Popular Tags
apartment become an entrepreneur best mower be your own boss bidding break business business education business help business management complex contractor hacks contracts deck lift dethatcher edging entrepreneur entrepreneur education estimate estimates fuel problems fuel pump half moon blade intro introduction jjandm lawncare l.t.rich landscape landscape design landscaping landscaping design company landscaping richmond va landscping lawn lawncare lawnservice lowering grade marketing mulch planting raising grade residential lawn care richmond va richmond virginia lawn care safety scag snowblower snow plowing snow shovel sprayer start a business start a lawn care business start business start up toro timecutter townhome tree tree service video web design websites what to charge work from home z-max z-spray
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 10:52 AM.


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

All times are GMT -5. The time now is 10:52 AM.

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