# What would you do? Customer complaining



## mustangmike45 (Nov 17, 2005)

Just got out of a meeting with a long time customer and it went something like this:

We are very happy with the quality of service you are providing and would like you to "keep up the good work". But, the price you have been charging us for the past 3 years is now too expensive and we need a price break. We got a few other bids and the lowest would plow the lot for $60 and sand it for $25, can you match that? 

I am currently plowing the lot for 125.00 and salting it for 150.00. I am under contract with a 30 day cancel policy and they know it. The owner stated " contracts mean ****, if you charge me if/when I cancel I just won't pay it." As stated earlier I have done this lot for 3 years with no complaints and now all the sudden they want more than half off or they will find someone else! I can't even come close to those prices with all my overhead and to top it off the lot needs to be plowed and salted by 5am so semi's can get to the loading dock. I am thinking of just telling them to go fly but don't want to loose a customer that i have had for that long.


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## cretebaby (Aug 23, 2008)

mustangmike45;733264 said:


> Just got out of a meeting with a long time customer and it went something like this:
> 
> We are very happy with the quality of service you are providing and would like you to "keep up the good work". But, the price you have been charging us for the past 3 years is now too expensive and we need a price break. We got a few other bids and the lowest would plow the lot for $60 and sand it for $25, can you match that?
> 
> I am currently plowing the lot for 125.00 and salting it for 150.00. I am under contract with a 30 day cancel policy and they know it. The owner stated " contracts mean ****, if you charge me if/when I cancel I just won't pay it." As stated earlier I have done this lot for 3 years with no complaints and now all the sudden they want more than half off or they will find someone else! I can't even come close to those prices with all my overhead and to top it off the lot needs to be plowed and salted by 5am so semi's can get to the loading dock. I am thinking of just telling them to go fly but don't want to loose a customer that i have had for that long.


He is just fishing Hold your price and let him give you a notice to cancel if he doesnt like it


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## grandview (Oct 9, 2005)

Thank you for being a good customer and I wish you luck with your new snow removal company you hire.


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## JDiepstra (Sep 15, 2008)

grandview;733274 said:


> Thank you for being a good customer and I wish you luck with your new snow removal company you hire.


.... and if you don't pay your bill I will sue you.


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## mustangmike45 (Nov 17, 2005)

That's kind of what I was thinking, with the economy going in the toilet and they are a manufacturing plant (welding) I am sure money is getting tight. Also doesn't help that we have already had 22 plowable events this year and 38 last year! I would be getting tired of bills as well but that is part of owning a business.


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## drivewaydoctor (Nov 26, 2008)

I don't get how you can't go lower than $125 per push? You have had 22 plowable days so far? That is $2750 for a parking lot? Is this lot only done with a pickup truck or are you needing to use loaders as well? Here, in my area, for lots that take an hour or two and require a pickup truck with blade/salter get anywhere from $300 to $600 per month for unlimited plowing in the month. If we can survive off rates like this why can't you? Not trying to start crap it just seems like you guys are getting a hell of a lot of money for plowing. More than us Canadians anyways...


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## BMWSTUD25 (Aug 21, 2008)

Most likely the guy that is willing to do if for that price either wont last or will fail to show within the time limits. Just be ready to take a phone call when they call wanting you back and remember to charge them more. dont gouge but raise your price. and if you dont hear back from them and let them go, just search to find someone new to fill their spot.:salute:


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## cretebaby (Aug 23, 2008)

drivewaydoctor;733305 said:


> I don't get how you can't go lower than $125 per push? You have had 22 plowable days so far? That is $2750 for a parking lot? Is this lot only done with a pickup truck or are you needing to use loaders as well? Here, in my area, for lots that take an hour or two and require a pickup truck with blade/salter get anywhere from $300 to $600 per month for unlimited plowing in the month. If we can survive off rates like this why can't you? Not trying to start crap it just seems like you guys are getting a hell of a lot of money for plowing. More than us Canadians anyways...


because we have winters that you only plow 4-5 times

besides it doesnt matter what the price is if he agreed to it then he should hold up his end of the deal


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## drivewaydoctor (Nov 26, 2008)

cretebaby;733324 said:


> besides it doesnt matter what the price is if he agreed to it then he should hold up his end of the deal


Oh I agree completely with this part...

I've done my lots almost the same amount of times as you guys. My commercial lots get special attention. 1" trigger...


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## JDiepstra (Sep 15, 2008)

drivewaydoctor;733305 said:


> I don't get how you can't go lower than $125 per push? You have had 22 plowable days so far? That is $2750 for a parking lot? Is this lot only done with a pickup truck or are you needing to use loaders as well? Here, in my area, for lots that take an hour or two and require a pickup truck with blade/salter get anywhere from $300 to $600 per month for unlimited plowing in the month. If we can survive off rates like this why can't you? Not trying to start crap it just seems like you guys are getting a hell of a lot of money for plowing. More than us Canadians anyways...


More plowing = more costs to the operator. Fuel, wages, tires, cutting edges... I don't need to go on, you are a pretty smart guy.

The idea is not just to survive. I would rather thrive! Ha ha I rhymed!


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## drivewaydoctor (Nov 26, 2008)

JDiepstra;733334 said:


> More plowing = more costs to the operator. Fuel, wages, tires, cutting edges... I don't need to go on, you are a pretty smart guy.
> 
> The idea is not just to survive. I would rather thrive! Ha ha I rhymed!


Oh boy do I know it... I've had so many unforeseen expenses this year I'm crying myself to sleep at night. lol


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## downtoearthnh (Jan 16, 2009)

I think that everyone has a right to try to get the lowest price, and we as contractors have to understand that there are individuals who will do whatever it takes to get an account. If you start trying to save every account, whether from pride, sense of loyalty, or some other logic, you will miss other opportunities that may be in the background. Say goodby and look for a hello!


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## BMWSTUD25 (Aug 21, 2008)

I have to say I do feel for you guys that are having problems with the lowballing that seems to be a growing trend. Im not sure why but around here more and more guys are willing to undercut you just to run around and talk about all the work they have. I guess it makes their D**k hard or something idk... but I'll be damned if im gonna work for less than everyone else just to look busy


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## mustangmike45 (Nov 17, 2005)

This lot is rather large as well with a sunk in loading dock that is a pain to plow out and a rear area that is scattered with large metal objects (dumpsters and equipment they use.) all of this has to be plowed around as well so they can access it easily with a forklift. I plow the lot with a truck and it takes anywhere from 1 to 1.5 hours to plow on a normal snow (6'' or less). I charge what I charge so that i can afford good quality equipment that will not break and if it does for some reason then I also have back ups, there is something to be said about a professional job that always shows up on time with no issues. Also, if I am doing it for free or anywhere close I would rather sleep in and not put the wear and tear on my 45,000.00 truck


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## BMWSTUD25 (Aug 21, 2008)

nicely put mustangmike


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## augerandblade (Jan 17, 2009)

tymusicussmileyflagWhen ever I lose a account by a lowballer I always think what goes around comes around. When I initially started out I worked at cost definitely lower than the established companies. Built up my business upped my prices when the "honey moon " was over. Now I got lowballers chipping away at my snowremoval list. So now I m trying to keep the contracts on good service / equipment and working as the contract requires. I would suggest that if ya cant lower your price then part company on good terms. SOMETIMES YOUR COMPETITION IS YOUR BEST ADVERTISER!!!!!!! You may be back,


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## JohnnyRoyale (Jun 18, 2006)

What Grandview said.


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## Joe D (Oct 2, 2005)

Part on good terms. like said. Wish them luck and tell them to call you if it doesn't work out.


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## drivewaydoctor (Nov 26, 2008)

mustangmike45;733356 said:


> This lot is rather large as well with a sunk in loading dock that is a pain to plow out and a rear area that is scattered with large metal objects (dumpsters and equipment they use.) all of this has to be plowed around as well so they can access it easily with a forklift. I plow the lot with a truck and it takes anywhere from 1 to 1.5 hours to plow on a normal snow (6'' or less). I charge what I charge so that i can afford good quality equipment that will not break and if it does for some reason then I also have back ups, there is something to be said about a professional job that always shows up on time with no issues. Also, if I am doing it for free or anywhere close I would rather sleep in and not put the wear and tear on my 45,000.00 truck


I would explain all this too them and advise them that what they are paying for is quality service. After 3 years I'm sure you have a fairly open relationship with them so I'd even go as far as commenting that it is astonishing that they would want to throw away such a great business relationship that has been working well for both parties over a monetary figure that has never been an issue before.

If you don't need the money just wish them luck.


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## BlackIrish (Dec 22, 2007)

mustangmike45;733356 said:


> I charge what I charge so that i can afford good quality equipment that will not break and if it does for some reason then I also have back ups, there is something to be said about a professional job that always shows up on time with no issues. Also, if I am doing it for free or anywhere close I would rather sleep in and not put the wear and tear on my 45,000.00 truck


I agree with you 100%, but your economy is causing havoc with everything.

Did you explain your " quote" ? to the customer?

Is it possible they would accept less plowing area for less $$?

I'd prob offer him a 10% discount and lock him into next year also, see what 
happens for economy in 10/11. 
Other than that GL with your new guy.
JMO


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## LoneCowboy (Jan 2, 2007)

Maybe the guy is really wanting you to cut your prices in half, in which case he can take a long walk off a short pier.
But maybe he's just looking to cut costs.
I am, you are, everyone is.

so, tell him what you said above, (it takes 1 to 1.5 hours, this and this and this are hard, insurance, gas, equipment, you have always had great service)
THEN
see if you can negotiate. change the trigger to a higher amount (maybe 1" to 2"), this will mean less plowing, less cost to him.
Maybe salt half as heavy. It won't be perfect, but it isn't negligent.
Maybe say you don't salt at all unless it's a total ice storm. It doesn't actually need to be blacktop. (really, most people get by without black top), or only salt by the front doors and loading docks.
Or or or

be creative.
You are partners. So be a partner, see his need and yours.
Seems to me there is a win-win in here somewhere.

And if you do come to an agreement, certainly he'll be recommending you to others.


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## mustangmike45 (Nov 17, 2005)

I have already tried to come to a compromise with him, I would plow the lot for 100 each time instead of the 125 due to the frequency of plowings this year. have also offered to salt less for half price only doing the drive, loading dock and entrances to building. He really didn't want any of that, seems to just want a price cut with same service. If this is the deal I will let him go but for now I will just let our talk today sink in and see if he was just having a bad day or what? We have never had any issues in the past so I would think he will come around. Also I am sure it didn't help that he was signing my check for 2700 right before he called me! (secretary told me this when I went in for meeting, she's a pretty cool lady and I plow her driveway). That's the other thing that kinda sucks about this account, I do the driveways of about 30 of the employees too!


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## drivewaydoctor (Nov 26, 2008)

mustangmike45;733844 said:


> I have already tried to come to a compromise with him, I would plow the lot for 100 each time instead of the 125 due to the frequency of plowings this year. have also offered to salt less for half price only doing the drive, loading dock and entrances to building. He really didn't want any of that, seems to just want a price cut with same service. If this is the deal I will let him go but for now I will just let our talk today sink in and see if he was just having a bad day or what? We have never had any issues in the past so I would think he will come around. Also I am sure it didn't help that he was signing my check for 2700 right before he called me! (secretary told me this when I went in for meeting, she's a pretty cool lady and I plow her driveway). That's the other thing that kinda sucks about this account, I do the driveways of about 30 of the employees too!


Use that to your advantage man. Reeducate him that even 30 of his employees trust in your quality service insist on paying the extra dollar to get the extra mile.

If he really doesn't care about any of that and he wants the same service for half the money then like others have said, tell him thanks but no thanks and wish him luck. Remind him he has 30 days to notify you according to the contract.


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## JDiepstra (Sep 15, 2008)

Your price sounds reasonable based on the amount of time it takes to plow the lot. If you talk to him again, remind him you do not make the snow, you just move it. Also ask if he got a copy of the low ballers insurance (cause he won't have insurance).


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## BigLou80 (Feb 25, 2008)

grandview;733274 said:


> Thank you for being a good customer and I wish you luck with your new snow removal company you hire.


Why do so many people have a hard time doing this ? I know I did at first but some times it feels good to fire the customer. I can sit home and go broke just as quickly as I can get outa bed at 3 am and go broke

When you are in business you some times have to be prepared to lose a job/client and realize it may be for the better in the long run. Just make sure you leave on good terms so when the low bidder no shows or goes belly up they know they are welcome to call you back and you will take them back if you have room.


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