Network Referrals...Particularly SGC

[AnotherBullseye]

So I have a few questions that I can't seem to find answers to from other people's threads. I operate a dozen or so locations (tent style) that make some great money during the summer. However, due to the weather I have always shut down for winter. That's no big deal for me as I am ready for it (and 12 tents in the summer is sort of like 6 tents all year), but I hate laying off my employees (especially the good ones). I am thinking about making some low custom offers for Lynx and SGC to get referral business during the winter. This is not so much for my own pocket (although I won't say no if it makes me money) as it is so I can keep providing work for my employees during the slow months. I have 2 questions for those who have knowledge of this:

1. Does lowering the custom price make a dramatic difference? I am thinking of lowering it by about $10-15 for lynx and $15-$20 for SGC. Now, I realize that that doesn't make much room for profit, but remember, I am mostly trying to avoid laying off good talent through the winter. I only need a couple bucks "profit" to pay for the processing (which, incidentally, would allow me to not lay off the office gals too). Will that give me enough referrals to keep my employees busy until spring comes or does it make little difference. If your knowledge is specific for Lynx or SGC please specify which.

2. Can I adjust the pricing back in say 3 months? Or do they make you keep it for like a year? (I could probably call them up for that question so flame on if necessary).

My suspicion is that it will result in lots of Lynx jobs, but I see SGC as sort of a Black Box that is somewhat mysterious due to their obvious conflict of interest. (which I don't complain about because that same conflict of interest gets us $75 flat rates for Allied when Lynx is usually only $50 and $10) However, I don't see Lynx providing enough jobs without real referrals from SGC to keep anyone doing referral work during the winter.

Anyway, any input would be appreciated.

[paulrsf]

This is only my opinion -not sure how others would feel. First, I totally sympathize with you about attempting to find the means to retain your employees during the months when business is slow. However, if you lower your rates to an unreasonable amount, you are not only devaluing your own service, you are making it harder for other technicians to charge an appropriate amount for their services. Secondly, though cost is a factor, there is much more to the equation when it comes to network referrals. You could conceivably lower your rates to the very lowest possible amount, and still not receive any increase in referrals. Last, if word gets out that you have dropped your rates substantially, customers will expect to pay that lower rate from that point on. If it were me, I would find several indoor locations that might work for doing winter repairs, (e.g., an unused service bay at a service station, or an indoor space that might be available at an auto accessory installation shop).