Offering a referal bonus

Irkie500 · 02-23-09, 07:10

I know this may be a common practice but what do you offer? I was thinking a 15% discount on a detail of their choise to the refered person and maybe 1 free service to the referer such as vinyl, leather or something like that. Any ideas would be great, looking to get a solid plan for this spring so I can get right into it.

Got_Leather · 02-23-09, 07:16

I do a 5% referral fee. So if you get 6 people to get a detail, your next detail is 30% off. Except Paint Correction. I will gladly give someone a deal on pricing if they have referred a good amount of people. If you send 6 people, it could be anywhere from 1800-6000 so why not give the original customer who sent you these customers $100 off or whatever it may be. People my way eat this up and it just generates new customers.

Jakerooni · 02-23-09, 07:52

Why would you give a discount to the referal person that's coming to you? That dosen't make any sense at all business wise. I can see giving the refereer a "Thank you" upgrade on his next service. Never cheat yourself out of money. It's not good business. If you have customers at your set prices then you know your set prices are within your market range and you shouldn't cut them down. What's more common is upgrading a service. Maybe using a higher end wax for a regluar price. etc etc. But don't cut prices. That's a quick way to make a one time customer only and not a repeat client that appreciates your work and knows you're offering a fair price for work. If that makes sense.

toyotaguy · 02-23-09, 11:59

you should throw in extra services for free, not give a discount! the "extra services" will cost you less than a % discount!

free glaze next time for added wetness
free claying on a maintanence detail
free carpet Hot Water Extraction/shampoo
free trim dressing on the next wash

if you offer discounts, you will be losing money at a percentage rate straight out of pocket

if you offer a free service, then you are out only the cost of the product + the time it takes. Now obviously if you work by the hour, then you are cutting yourself short with this method!

brwill2005 · 02-24-09, 02:46

$20 Starbucks gift card to the person who REFERS the new customer.

bryansbestwax · 02-24-09, 03:17

I base mine on what the person buys from me, if you refer me to bob and bob get the top of the line detail, you get 20 bucks, if he gets the next step down, 10 bucks . Although I think it is nice to offer services, people love cold hard cash and referring generally goes alot smoother.

Irkie500 · 02-24-09, 04:13

Hey thanks guys for the pointers the whole business aspect is completely new to me so im trying to work things out.

bryansbestwax · 02-24-09, 04:19

You could also give them a choice, say 10 dollars cash or double that in services.

mshu7 · 02-24-09, 07:38

If someone refers a client to me that books a Complete Detail, I will send the referrer a $20 gift card towards their next service. The gift card expires after 6 months.

Jakerooni · 02-24-09, 07:58

You know by law that can't expire for 5 years now right mike? It's one of the reasons I'm leary about giving out gift cards anymore.

Fact sheet on state gift card protection laws

edit* I see you're from Indy so it might not apply to you... I know Mi and Ill are 5 years now.

mshu7 · 02-24-09, 08:07

Quote:

Originally Posted by Jakerooni

You know by law that can't expire for 5 years now right mike? It's one of the reasons I'm leary about giving out gift cards anymore.

Fact sheet on state gift card protection laws

Nope, did not know that. Looking at that site though, I don't see Indiana listed on there. I wonder if IN doesn't apply!?!?!?

Thanks for the heads up though!

Danase · 02-24-09, 08:14

I never offer a discount for referrals. I might give a discount or do someone a favor if they are GOOD repeat customers. Not just one or two times either. If the customer is happy they are going to refer you anyway usually.