Business Relationships between upholstery shops and me

Quality Leather

New member
As some of you know, I own a leather repair business. I have been doing it for to long, but it is what it is. Anyway, I have a question relating to dealing with upholstery shops. For years and until now, when someone called me or asked me for a recommendation for an upholstery shop, I would send them to a shop I knew. I would also do this when it was for work that I couldn't do or didn't want to do.



In Atlanta, I would just give the name of the shop. The shop's name was given to me by a reputable customer, who also had several friends that had used the shop in the past and highly recommended it. In Miami, I went a lot further. I would give the name and number. A lot of times I would take the info down and call the owner and give him the info.



Here is the thing, I have never asked for anything in return. In Atlanta, it hasn't been that big of a deal. I do get a little annoyed by people that seem put out when I don't have the number to give them or want to talk to me for five minutes about what they will do. In Miami, it has become an issue. The only thing I wanted originally was a discount for work that I needed. Well, I hardly ever have a need for their work.



Lately, I have been trying to come up with a better solution for me. My guy in Miami has told me in the past that he would give me a fee (around $50 to $100) for every job I gave him. My problem with that is I end up being in the middle of the shop and customer. To many headaches can arise from this arrangement. I have already experienced this multiple times, even though I tell the customer that I just recommended the shop and that is it.



My newest idea is to just charge a flat monthly fee of say $100 to $150. For this, I will give out the shops name and number to clients that I cannot service. I will also put their name, number, location and website on my website. I was thinking this was pretty fair. I probably give the guy in Miami anywhere between $10k and $30k of business a year. I don't track it, so I don't know what an exact figure is. I do know that I probably give the shop's name out anywhere between three and ten times a month for both Atlanta and Miami. My guess is their business will increase just from being on my website alone.



Sorry for the long post, does anyone think this is a good path to follow? Is there maybe a better alternative?



Thanks
 
I'd charge a referral fee. Almost impossible to track it unless you get the client's name and make a follow up call. How difficult is to take in the job and sublet it to the shop for a reduced price and mark up their rate 20-30%?
 
Thanks David. My problem is I don't know enough about what to do and more importantly what to charge. I think I am just going to stop doing referrals. The time and hassle isn't worth it.
 
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