"This guy told me you would charge $600 and would require payment up front," she said.

I was stunned.

"I don't know where he came up with that figure," as I struggled not to drop the phone. "I'm not even sure who this guy is. But the price is actually $120 and you can pay me after the job is done and you're satisfied with it. It should only take me 2-3 hours."

She told me she would call me right back. She did and said this other guy (whoever he was) wanted to charge $250 and was really pressuring her to commit.

"I want you to do it. Something is just not right about this other guy. I had always heard good things about you but this other guy said you were expensive. Now I'm glad I called. I'm going to tell everybody I know about you."

This was very good news for me since she works at a very high profile and busy business. And what do you think she'll say about the other guy?

She's not the only one telling people about my business. There are many people that give me referrals all the time. I have realtors, stay at home moms, retirees, and other business owners that refer business.

Why? Because I do a great job at a fair price. Because I am honest with customers. And when I know that if I provide the service that it won't make that much difference, I tell them. This saves them money and lets them know I'm not just trying to make a buck at any cost.

One example: I turned down a very simple job last week that would have been an easy $160 for two hours work. The customer's exact words were," I appreciate your honesty." The end result? More referrals from him that made me more money than if I would have done the job for him.

Here's a summary of the keys to getting your customers to get referrals for you.

1. Do a great job at a fair price. You may get more money initially on a job, but if your customer feels ripped off you will never hear from them again. They'll also tell everybody they know not to use you.
2. Be honest. I can't stress this enough. If you are caught being dishonest in any way, you may well have sunk your business and you have certainly damaged your reputation as a person.
3. Never badmouth your competition. It will hurt you worse in the long run.
4. Do a little extra than is what is expected of you from the customer. Then mention it to them casually as you are settling up. Example: " I saw this and I went ahead and fixed it for you." Some customers will ask if they can pay you for it – turn the money down and it will pay you back many times over by word of mouth.
5. Send a thank you note to keep your business name in front of them. If you own a service business as I do, a postcard can be worth $200-300 more in business in referrals.


About the Author
Gary Rambo is the publisher of National Small Business Journal as well as the owner of a service business on the Olympic Peninsula in Washington State. To get a Free copy of the Journal write to NSBJ-1, 259 Pristine Lane, Port Angeles, WA 98362