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: 36,213
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: 10
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: 36,213
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: 36,213
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: 36,213
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
These are the days on...
ExtremeLawncareServices
03-22-2014 09:12 AM
Yesterday 09:10 PM
by JLM
82 4,759
Mow and leaf cleanup bid
SGL1
07-29-2014 07:28 PM
Yesterday 07:39 PM
by SGL1
15 193
Late charge
Simon Abousaada
Yesterday 07:23 PM
Yesterday 07:23 PM
by Simon Abousaada
0 29
Need input on a bid
phlawncare
07-28-2014 08:51 PM
Yesterday 06:35 PM
by phlawncare
6 183
Building credit
Matther777
07-27-2014 05:20 PM
Yesterday 05:50 PM
by Matther777
11 241
New from Texas
Livingston Lawn Care
07-25-2014 11:17 AM
Yesterday 01:03 PM
by Steve
5 207
Single tree, mow customer
WesleySnips
06-27-2014 10:12 AM
Yesterday 12:31 PM
by Steve
17 734
Formulas Used
BaileynSamsMum
07-29-2014 06:40 AM
Yesterday 12:19 PM
by Steve
3 132
Spreading Weeds?
WesleySnips
07-27-2014 09:46 PM
Yesterday 06:29 AM
by kslawn
5 176
Will summer ever come
ExtremeLawncareServices
07-29-2014 08:27 AM
07-29-2014 08:29 PM
by SGL1
5 134
From Concord NC
SouthernRootsLawnCare
07-26-2014 02:34 PM
07-29-2014 02:28 PM
by Steve
3 132
Have you ever had to...
SouthernRootsLawnCare
07-26-2014 02:41 PM
07-29-2014 02:28 PM
by Steve
4 191
Echo Edger 'Neutral'
WesleySnips
07-25-2014 05:28 PM
07-29-2014 02:25 PM
by Steve
4 185
Left handed edging with...
SGL1
07-23-2014 08:59 PM
07-28-2014 07:39 AM
by SGL1
15 374
Echo PE 266 edger
stevef1201
07-01-2014 01:28 PM
07-27-2014 10:14 PM
by WesleySnips
5 384
Texas lawn care company...
Livingston Lawn Care
07-25-2014 11:29 AM
07-27-2014 08:16 AM
by Just for Cuts
7 224
need some help geting...
dalvan0
07-13-2014 09:28 PM
07-26-2014 04:39 PM
by BLC7
7 375
new trailer help
mattthelawnguy
07-11-2014 08:21 PM
07-25-2014 06:31 PM
by mattthelawnguy
13 568
You know it;s gonna be a...
stevef1201
07-25-2014 08:50 AM
07-25-2014 01:34 PM
by Steve
1 138
Customer letters
kslawn
07-23-2014 06:17 AM
07-25-2014 01:20 PM
by Steve
5 262
Got my first lawn job...
SGL1
06-11-2014 09:19 PM
07-24-2014 07:09 PM
by SGL1
29 1,333
Need help determining...
Jbss861
07-20-2014 02:33 PM
07-24-2014 01:11 PM
by Steve
13 446
Should I ?
googus
07-22-2014 04:06 PM
07-24-2014 12:10 PM
by Steve
4 285
My First Apartment...
SSLCtn
05-26-2014 10:17 PM
07-24-2014 06:46 AM
by kslawn
15 966
Crop Rotation Techniques...
eastsidelandcare
07-17-2014 03:47 PM
07-24-2014 06:38 AM
by kslawn
3 266
Selling lawns like...
eastsidelandcare
07-17-2014 03:51 PM
07-24-2014 06:28 AM
by kslawn
3 319
Scag new "Eliminator"......
ExtremeLawncareServices
07-20-2014 10:45 AM
07-23-2014 05:37 PM
by Just for Cuts
9 368
need professional advice...
Fiddlers_green
07-20-2014 07:21 PM
07-23-2014 12:42 PM
by Steve
3 264
new to me box truck
jrayb39667
03-06-2014 10:20 PM
07-23-2014 12:40 PM
by Steve
15 1,484
Lawn Service back in...
LawnCareMan280
07-18-2014 09:00 PM
07-23-2014 11:48 AM
by Steve
4 293
Overspray?
stevef1201
07-21-2014 04:20 PM
07-23-2014 11:39 AM
by Steve
3 203
Hello Everyone! Newbie...
SLKlawn
07-17-2014 06:22 PM
07-22-2014 01:53 PM
by Steve
6 348
Proper height for lawn
rob lederhilger
05-26-2014 08:01 AM
07-21-2014 02:53 PM
by LawnDoctor
9 710
Blade sharpener
Just for Cuts
07-04-2014 12:31 PM
07-21-2014 01:48 PM
by Steve
9 570
What's my business worth?
Chaz
07-16-2014 01:35 PM
07-21-2014 01:45 PM
by Steve
4 359
1.5 Acre Jungle
WesleySnips
07-15-2014 05:57 PM
07-20-2014 11:31 AM
by ExtremeLawncareServices
21 698
Gopher schedule software
Ray
07-18-2014 04:13 PM
07-18-2014 04:13 PM
by Ray
0 252
2006 Chevy fuel pump...
KevinsLawns
07-17-2014 08:39 PM
07-18-2014 11:51 AM
by Steve
1 242
Halfway point of year!
Steve
07-01-2014 12:08 PM
07-18-2014 11:38 AM
by Steve
14 807
I got told to leave and...
gwilson98
06-16-2014 02:07 PM
07-17-2014 11:43 AM
by Steve
16 1,126
Hey guys this is the...
prmenter@gmail.com
07-07-2014 08:23 PM
07-16-2014 08:10 PM
by ExtremeLawncareServices
28 859
Mowing the hills
prmenter@gmail.com
07-08-2014 12:22 PM
07-16-2014 05:00 PM
by Just for Cuts
18 779
Say Hello !!!
Steve
03-19-2007 11:18 AM
07-15-2014 05:38 PM
by icon2000
1,184 321,413
Classified Ad Template...
bcfb
06-05-2013 02:40 AM
07-15-2014 11:16 AM
by Steve
15 3,802
Husqvarna pz 60
CDLAWNCARE
07-06-2014 06:50 PM
07-15-2014 08:53 AM
by kslawn
10 518
Lowballers
Chaz
07-11-2014 03:55 PM
07-14-2014 12:27 PM
by Steve
5 427
My new side job
Sprinkler Buddy
05-10-2014 05:23 AM
07-14-2014 12:15 PM
by Steve
10 880
Illegal spraying
GoGreenerKS
07-04-2014 09:11 AM
07-13-2014 10:36 PM
by GoGreenerKS
10 620
New Mower and Trailer
Chaz
06-25-2014 12:04 PM
07-13-2014 06:25 PM
by SGL1
7 642
What Fertilizer to Use?
acrajchel
04-07-2014 01:56 PM
07-12-2014 07:36 PM
by SGL1
21 1,977
» Popular Tags
4wd advertisement article marketing auger bid butterfly gardens charge christmas lighting christmas light service courtesy call customers decorating estimate exmark ferris first truck fundraiser gopherhaul grass gravely hills holiday holiday decorating holiday lighting how much to charge introduction john deere quik trac lawn lawn care lawn care business book lawn care business seo lawn care business show lawn care business website lawn care business website seo lawn care website leaf lighting marketing monthly mow mulch mulch price new buisness new mower organize outdoor environments payment podcast property management company pto reo scag schedule scripts seo snow starting a business starting a lawn care business start up lawn care business steve stihl theft toro toro grand stand trailer trimmer rack walker winter winter services zero turn
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 12:10 AM.


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

All times are GMT -5. The time now is 12:10 AM.

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