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Neighbor Discounts

Discussion in 'Commercial Snow Removal' started by POWER STROKE, Oct 13, 2011.


    Messages: 99

    I was wondering if any body offers "Neighbor Discounts" and if so how much of a discount do you offer.
    Thanks in advance for any help or input.
  2. erkoehler

    erkoehler PlowSite Veteran
    Messages: 3,279

    Yes, if multiple sign up at once, but only for the first year.

    Messages: 99

    Thanks erkoehler for your help and input
  4. theplowmeister

    theplowmeister 2000 Club Member
    from MA
    Messages: 2,617

    I give referral discounts
    get 1 person to sign up with me you get $5 off every storm for 1 year
    get 2 people to sign up with me you get $10 off every storm for 1 year
    get 3 to sign up with me you get FREE plowing for 1 year

    Please dont tell me I'm nuts or not a good businessmen man. it works for me, YOU DONT have to do it.
  5. swtiih

    swtiih PlowSite.com Addict
    Messages: 1,179

    I do for the first year , time is money and I don't make money when I drive & look at the plow up in the air
  6. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Only problem is with discounts is if some people quite the rest still expect the discount.

    Messages: 99

    Thanks every one for your input
  8. IMAGE

    IMAGE Sponsor
    Messages: 1,747


    REAPER 2000 Club Member
    from 60050
    Messages: 2,230

    I do the neighbors right next door for free because the kids mow my yard during the summer n/c. All others I either tell I don't do drives or charge them such an outrageous amount they say no.

    Messages: 99

    That's looks like a good Ideal.
  11. plowguy43

    plowguy43 PlowSite Fanatic
    Messages: 5,281

    I do the same, except the free one. I max out at $10 off.
  12. lawnlandscape

    lawnlandscape Senior Member
    Messages: 374

    Refer a neighbor = first visit free for both and $5 off per visit for both.
  13. YardMedic

    YardMedic PlowSite.com Addict
    Messages: 1,266

    You're nuts! Thumbs Up

    Had to do it... sorry! No, it makes a lot of sense. I find word of mouth about good service is my biggest asset, and if current customers are encouraging friends/neighbors, then I think that needs to be rewarded in a similar fashion. Your referral schedule is pretty reasonable. 3 referrals for me would be $90 per storm that I didn't have yesterday. Plus, you have to think that the customer getting free plowing for the winter (300-400 value average?) will be yours for life! Good call! payup
  14. lawnlandscape

    lawnlandscape Senior Member
    Messages: 374

    Ya.. YardMedic.. you are a little nuts.. lol

    My discounts are very simular as yours, except the FREE thing. lol
  15. MikeRi24

    MikeRi24 Senior Member
    Messages: 563

    Its risky. Say you get 4 neighbors, and you give the discount to the first customer, then next year you DON'T get all 4 back. You just gave a discount for nothing. I look at it the same way I do with mowing lawns. I like to let my reliability and quality of work be my referral agent. If we do a good job and my customer's house is plowed out and the neighbor's guy hasnt shown up, and we are already out making our second trip around mid-day to clean up the aprons after the town has been around and the neighbor's plow guy is just showing up for the first time, they will take notice, and at that point they are more concerned about the quality of service than the price. I have gotten pretty much all of my multiple-stop streets this way, and continue to get more every year, and theres no discounts to affect my bottom line.
  16. GTMS

    GTMS Senior Member
    Messages: 101

    I do nothing for free cause it ain't free to me, I have to pay for gas, insurance, repairs etc, etc. Be on time and do a good job and you wont have to give away anything! It's worked for me since 1989.
  17. theplowmeister

    theplowmeister 2000 Club Member
    from MA
    Messages: 2,617

    OK so you get 3 back

    The discount ONLY goes to the customer that got you the referrals.
    so customer A I charge $40
    he sends me 2 referrals that sign with me. I now have 3 $40 customers thats $120 that i didnt have yesterday. so I give customer A $10 off, so I make $110 instead of $120. Now I tell customer A if you get 1 more customer to sign with me I will plow you for free for 1 year! You better baleave he trys to find me one more customer. I let him do the work of getting me customers.
    Last edited: Oct 24, 2011
  18. theplowmeister

    theplowmeister 2000 Club Member
    from MA
    Messages: 2,617

    Do you advertise? I submit to you, that my way results in more customers and at lower cost than advertising in the local paper.

    I have an active recruitment person working for me (customer A). Im not relying on the person next store to notice.

    do you by when items are on sale ? So do my customers.
  19. Night_Sailor

    Night_Sailor Junior Member
    Messages: 28


    We give one neighbor a discount because the wife brings us food gifts like banana bread. This year we start charging them.

    No one else gets a discount. If anything we don't mind losing some accounts. We drop the harder ones, or rather pass them off to other plow operators, or shed them by raising the rates. We are always picking up new accounts.

    You can tell how good a plow business you have here, by which clients your drop (pass on) to some other plow guy.

    There are some horribly hard driveways that no one wants--the risk of getting stuck means some get done last--one we call "no man's land"--the guy loves us because no one else will take that job. We keep it only because we have five other jobs on that street and it pays very well $160 per storm. The hard jobs take twice as long or longer--so the income per hour drops with those. We tend to raise the prices with the difficulty of the job and the hard ones cost more, we charge more and we don't care if they find someone else cheaper. More easier jobs closer together is our goal.

    This is one reason I'm thinking a Jeep would work for me. I could pick up all the jobs no one else could do easily and my advertising cost would be zero.

    If we get one more driver/rig we could think about expanding. And it would be nice just to have one more working truck ready to go. This October storm one plow relay failed and I managed to get it working. I'm making a modification to make it more reliable and easier and faster to swap. Even so, if a rig is down, then production drops 50%.
  20. pooleo8

    pooleo8 Senior Member
    Messages: 271

    Except the part about showing up before city plows, that plow a 2ft berm at the end of the drive! payup