Replacement Referrals

[zachb]

I have been trying to obtain a referral fee for replacements that I send to another shop but have a few questions that I need some advice with.

1. How do you make sure the shop isn't going to steal a customer you send them away from you? In my area there is only one glass shop I know of that doesn't do repairs and they do horrible, cheap work, so I wouldn't refer to them.

2. What is a reasonable fee for replacement referrals?

Do they send you a 1099 form for the fees?

[SGT]

Originally Posted by zachb

I have been trying to obtain a referral fee for replacements that I send to another shop but have a few questions that I need some advice with.

1. How do you make sure the shop isn't going to steal a customer you send them away from you? You really can't outside of good customer relations. Hopefully the shop you feel comfortable with would be honest with the mutal agreement.

In my area there is only one glass shop I know of that doesn't do repairs and they do horrible, cheap work, so I wouldn't refer to them. That is probablly wise as it is your reputation as well that would be affected.

2. What is a reasonable fee for replacement referrals? I guess that really depends on your area. I have an aggreement with one shop that for all completed replacements I send them I recieve a 50.00 referral fee. They only do in shop repairs so they also send me mobile repair work on occassion. It has worked out well.

Do they send you a 1099 form for the fees? I believe that depends on how much they pay you.

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[splitpit]

In general, referal programs for a fee aren't that worthwhile.

I work with 3 glass shops...no money exchanged...they send me repairs, I send them replacements. Works well.

[Glassdoc]

I was approached by a little mom n pop glass shop 4 years ago.. they do not do repairs and since I do not do installs we came to an agreement.. For every repair they sold, they got $20, for every install I sold I got $20. I really did not see this as being lucrative on their part as they were pricing repairs at $75.00 Well, thats what changed my mind about my pricing.. They consistently sell 3-6 repairs a month at $75 per shot.. Yes, per shot.. And they do this for $20.. Now, I will charge the $75 for the first shot as quoted by them, but I only charge an addt'l $30 for the second, makes me look like the good guy, and I make $85 for doing 2 shots.. You can't beat that deal..

[toab]

Splitpit: Does the customer always tell you who or which shop referred them?? Meaning how do you decide which shop gets your replacement referral when dealing with 3 shops.I would think it might be hard to keep all 3 shops happy.

I agree with the no money exchanged idea as long as you get enough referrals.But how do you know whether your 3 other replacement shops are not dealing with more than 1 repair facility themselves?

[splitpit]

In general, they usually tell me who referred them to me. I give a particular shop the referal depending upon the location of the customer. I trust in these guys the same way they trust in me. They choose to refer to me exclusively because they know I offer the best repairs, the best service, and I stand behind my work with a money back guarantee. It's a solid working relationship that has been built over a long period of time.