I recently started my own repair company and I am going to make a huge effort to direct replacement customers to a shop that will take care of them. In the past when I worked for someone else doing repairs, the technicians that I managed probably turned down over 80 valuable replacement customers a month simply because the co i worked for was not smart enough to have set up a refferal program.
I spoke with an individual who does repairs that had set up a vary lucrative refferal program with an install company, where he set up the claim and the appointment for the install (leaving a 4 hour window) then called the install company with the ref # and customer info. All that the install company had to do was show up and install.
My question is this...for those of you that have a deal worked out to dish of those referrals to an instal company, how much do they pay, and how did you go about getting that account?? Right now I just dont want the liability and overhead involved with doing replacements. maybe in the future though. I just want to know what dollar amount install companies are paying before I approach these install companies with this proposition only to get the run around and get low balled... The guy that I spoke with had a deal worked out that he would get$100 per insurance replacement he set up... that could turn into a possible 6-8k per month pending the jobs were all insurance and all were installed.
Seems a bit unrealistic to me, at least over here the insurers have beat the price down so low there is not much left in the deal for commisions. If that is not happening over there it is coming shortly for sure.
Congrats on your new business. One of the best ways to start the referral system of replacements is to meet with several different replacement shops and explain exactly what you are trying to do.....that is: send them business, right? You will find some will be interested and some maybe not. Engage them in the conversation and negotiate something that works best for both of you. I think you will find that $100 is a a little aggressive. Having been in the replacement business, I can say, there may not be that much profit on every job to make that work - but I'm sure there is a number you can figure out with the owner. Of course it depends on your market, the competition and how they are paying. Good Luck! Your thoughts are in the right place. Having a replacement referral income is just good business. Remember to mention to them that you are giving several shops the chance to get in on your referrals - that way they'll know if they want your business, they'll have to be competitive......
Just another thought on this one, if you are looking at any where like $100 per refferal which is twiceoor maybe more than some guys are charging for a repair, it would be far more beneficial to your bottom line to convince every customer it is not repairable and refer every job. Although of course I for one would not condone this practise.
Mrchips and screenman. Thank you for hsowing interest in my business. I think we all can learn much from one another. I appreciate your feedback and would love to hear any other constructive coments.
I just left a replacement company to do my own repair business. When I told my boss what I was doing, I didn't want him to think I was going to be his competetion for repairs, that was not my intent. Where we are that glass shop has a 150 mile radius for mobile work, but are not willing to travel very far for just a repair, I will. That's the difference between us. Anyhoo, I told my boss, if I came across any that could not be repaired, they were the glass shop I would recommend and give them my bosses card. This glass company has a Rewards program where, for so many dollars a referral spends you earn points and then you can redeem the cash or prizes. So maybe with these companies, you could negotiate a percentage of all your referrals. Just an idea. Good Luck!!
