Evaluating Snowfall Frequency and Severity
The first step in deciding how much to charge is to evaluate average snowfall in your region. Areas with frequent, heavy snowfall will require more equipment wear, more man-hours, and a higher overall workload. For instance, snow removal in parts of the Midwest or Northeast United States typically involves more frequent dispatches than milder climates. Understanding how often snow events occur helps determine if a per-event, per-season, or hybrid pricing model makes sense.
You can begin by analyzing regional weather data over the last five to ten years. Pay attention to not just the total accumulation but the number of snow events over one to two inches—this is when most clients expect removal. Estimating how many clearings will be needed each season creates a foundation for your pricing plan.
Defining the Type of Snow Removal Offered
Snow removal is not a one-size-fits-all service. Residential driveways, commercial parking lots, and rooftops each require a different approach. Residential work often involves less square footage but more frequent visits, while commercial lots require heavy-duty plows and careful scheduling to avoid disrupting business operations. Rooftop snow removal demands specialized safety equipment and protocols due to fall risks and structural considerations.
Pricing must reflect the scope and difficulty of the task. For example, a basic driveway might be cleared in 30 minutes, whereas a commercial site could take several hours with a team of two to three workers. Similarly, roof removal costs are higher due to liability and the specialized gear required.
Choosing the Right Pricing Model
There are four common snow removal pricing models:
- Per Push or Event Pricing: This model charges a flat rate for each snow removal service. It’s best for regions with unpredictable snowfall or clients who prefer pay-as-you-go services.
- Hourly Pricing: Best used when the time required for snow removal is uncertain, especially useful during blizzards or large accumulations.
- Seasonal Contracts: These contracts charge a fixed price for an entire season, regardless of snowfall frequency. They provide predictable income but carry risk if snowfall is higher than average.
- Per Inch Pricing: This tiered method adjusts rates based on accumulation depth. For example, 1–3 inches may cost $50, 4–6 inches $70, and so on.
Each pricing model has advantages depending on your location, client preferences, and risk tolerance. Contractors often use a mix of models, offering flexible pricing to match varied client needs.
Estimating Residential Snow Removal Charges
Residential pricing typically ranges from $30 to $75 per visit for a standard single-car driveway. Double-width or longer driveways may cost more, especially if they require hand shoveling around vehicles or tight corners. Adding walkways or front steps increases labor, and should be priced accordingly—typically an extra $10 to $25 per visit.
Contractors in snowy regions sometimes offer seasonal contracts for $350 to $700 per property. When using this approach, ensure your quote reflects an average winter’s workload, plus a buffer for unusually heavy seasons.
Factoring in Commercial Lot Snow Removal
Commercial snow removal is generally priced higher due to larger areas, tight schedules, and the need for liability insurance. These jobs often require plows, salt spreaders, and dump trucks for snow hauling. Pricing can vary from $150 to over $500 per push, depending on the square footage and complexity.
Many businesses prefer seasonal contracts to ensure priority service. These can range from $2,000 to $10,000,,+ depending on location, lot size, and frequency of visits. Additional services such as sanding, salting, or overnight standby fees should be quoted separately or bundled at a premium rate.
Understanding the Cost of Roof Snow Removal
Roof snow removal is highly specialized. It demands fall-protection systems, skilled labor, and often extra time per job. Residential roof clearing typically starts at $300 and can go up to $1,000 depending on slope, square footage, and snow load. Commercial rooftops are more complex and may require cranes, ladders, and multi-person teams, pushing costs even higher.
Insurance costs for roof jobs are also higher, which should be factored into your quote. Safety regulations must be followed closely, and time estimates should be conservative to avoid rushed or hazardous work conditions.
Accounting for Equipment and Operational Costs
Your pricing should always cover direct and indirect costs. Direct costs include gas, maintenance, wear and tear, and equipment depreciation. A mid-grade snow blower might last 3–5 seasons; a truck-mounted plow may last longer but with higher maintenance needs. Fuel, oil changes, tire replacements, and salting equipment should all be built into your baseline charge.
Indirect costs include vehicle insurance, business liability insurance, advertising, accounting software, and licensing fees. If you use contractors or employees, payroll taxes and worker’s compensation must be included as well.
Calculate your total monthly overhead and divide it by the estimated number of billable hours per month. This gives you a base cost per hour or job that helps ensure your pricing supports a sustainable business.
Adjusting for Urgency and Timing
Urgent snow removal—such as post-blizzard or overnight services—commands a higher rate. Offering premium time windows or 24/7 availability should come with a surcharge of 25–50%, depending on demand. Clients who require service before 6 AM or within two hours of snowfall ending may also expect to pay more.
Priority service can be bundled into seasonal contracts or offered as an a la carte upgrade. Clearly define timeframes in your client agreement to avoid misunderstandings or disputes.
Including Add-on Services
Snow removal often includes upsell opportunities such as:
- De-icing and salting
- Sanding for traction
- Gutter clearing (post-storm)
- Snow relocation or hauling off-site
These services add value and increase per-visit revenue. Salt spreading, for example, might be priced at $25 to $60 per application, depending on surface area. Hauling snowsite involves truck rental, fuel, and dumping fees, es—often exceeding $100 per job.
Understanding Minimum Charges
Establishing a minimum service charge helps protect profitability. If a client requests service for a light dusting or a very small area, your base pricing should still reflect the cost of sending out equipment and labor. Minimum charges usually range from $35 to $50 for residential and $100+ for commercial.
Setting clear expectations about your minimum fee prevents price haggling and preserves efficiency during peak periods.
Setting a Fair and Competitive Rate
To stay competitive, research what others are charging in your area—but avoid a race to the bottom. Underpricing erodes profit and encourages burnout. Instead, focus on offering reliable, insured, and well-communicated service. Many clients are willing to pay more for responsiveness, courteous crews, and guaranteed scheduling.
Ask current clients for feedback on your pricing—would they be willing to pay more for earlier service, text alerts, or bundled services? These insights can guide your pricing evolution over time.
Offering Flexible Billing Terms
Depending on your market, offering both per-visit and contract options provides flexibility. Some homeowners may prefer to only pay when needed, while others want peace of mind. Commercial clients often expect net-30 invoicing and detailed monthly summaries.
Ensure that your invoice includes a full breakdown: date of service, time spent, type of service provided, and any surcharges. This builds trust and streamlines billing.
Annual Review and Price Adjustment
Snow removal pricing should be reviewed annually. Inflation, fuel cost increases, equipment upgrades, or changes in snowfall frequency all impact your profitability. Evaluate your actual time logs from the prior season and identify undercharged jobs. Small annual increases (3–8%) are usually acceptable to clients, especially when framed around rising operational costs.
How Much to Charge for Snow Removal: Rate Structures and Pricing Formulas
After establishing the fundamentals, it’s time to dive deeper into the financial mechanics of snow removal pricing. To run a profitable operation—whether solo or as a team—you’ll need a system that accounts for cost inputs, service time, market standards, and the unpredictability of snow itself. Crafting reliable pricing formulas allows for consistency, transparency, and scalability.
Calculating Residential Snow Removal Rates
Residential snow removal services are usually the most straightforward to price, though they can still vary widely depending on location, property layout, and client preferences. A basic pricing formula for a residential driveway looks like this:
Base Rate = (Time to Complete Job × Hourly Labor Rate) + Equipment Fee + Material Cost (if applicable)
Suppose a standard driveway takes 25 minutes to clear. If your target hourly rate is $60, and you use a snow blower that incurs $5 in operational cost per use, then:
- Labor: ($60 ÷ 60 minutes) × 25 minutes = $25
- Equipment: $5
- Salt (optional): $3
Estimated total per visit: $33
Rounding to a market-friendly $35 or $40 covers small variances and ensures you’re not underbidding. You can also set tiered pricing for snow depth:
- 1–3 inches: $35
- 4–6 inches: $45
- 7–10 inches: $55+
This ensures heavier storms don’t erode your margin.
Pricing Walkways, Steps, and Sidewalks
Residential clients often expect additional areas like walkways, porches, or sidewalks to be cleared. These are more labor-intensive, usually requiring hand shoveling or smaller tools. The time adds up quickly, and the cost should reflect that.
For every 10 linear feet of walkway or set of steps, you can add $5–$10, depending on complexity and labor. A full property snow removal service might look like:
- Driveway: $40
- Sidewalks (40 feet): $20
- Front steps: $10
- Salt application: $5
Total: $7Itemizingng these services in your quote shows professionalism and avoids scope creep.
Commercial Snow Removal Rate Structures
Commercial pricing tends to be more complex and often negotiated via contracts. Larger lots, corporate expectations, and after-hours requirements mean higher risk and more responsibility. A scalable pricing formula here involves square footage:
Rate = (Square Footage ÷ 1,000) × Per 1,000 sq. ft. Rate + Equipment Fee + Deicing/Material + Standby Fee (if applicable)
For example, a 15,000 sq. ft. parking lot at $12 per 1,000 sq. ft. equals:
- $12 × 15 = $180
- Equipment use (truck-mounted plow and salter): $40
- Salt application: $30
Total per push: $250
Time tracking is crucial here. If a job takes over two hours, your rate should increase accordingly or be adjusted to an hourly model during heavy snowfall
Tiered Commercial Pricing by Snow Depth
Some businesses prefer tiered rates depending on snow accumulation:
- 1–3 inches: $200
- 4–6 inches: $275
- 7–10 inches: $375
- 10+ inches: hourly or negotiated storm rate
This accounts for the exponential time and effort it takes to remove heavy snow.
Seasonal Contract Formula for Commercial Properties
A seasonal contract spreads risk across the year and locks in a guaranteed income. The formula typically includes:
(Average # of Pushes per Season × Per Push Rate) + Contingency Buffer (10–20%)
If a business expects 20 snow events per season at $250 per visit:
- 20 × $250 = $5,000
- Contingency (15%): $750
Seasonal quote: $5,750
You can split this into monthly installments or offer discounts for upfront payments.
Pricing Rooftop Snow Removal Jobs
Rooftop snow removal is priced much differently, as the risk and complexity are much higher. The formula often includes:
Labor (2-person crew) + Safety Equipment Fee + Insurance Buffer + Hauling/Disposal (if applicable)
Let’s say a job requires 3 hours for two crew members at $60/hour per person:
- Labor: 3 hours × 2 workers × $60 = $360
- Equipment wear and safety rig: $40
- Insurance buffer: $50
- Hauling: $100 (if required)
Total: $550
Due to the nature of rooftop jobs, it’s advisable to add a flat risk surcharge of 10–15% for unexpected delays or hazards.
Hourly vs. Flat Rate Considerations
Some contractors prefer to charge hourly, particularly in situations where duration is uncertain (i.e., blizzard cleanup, snow hauling, or multi-property routes). When doing so, consider a minimum charge to make short visits worth your time.
Hourly pricing models should account for:
- Crew size
- Travel time between jobs
- Warm-up and loading/unloading time
- Fuel consumption
Typical snow removal rates range from $75–$150 per hour for residential and $125–$250 per hour for commercial jobs, depending on the equipment used.
Equipment-Based Pricing Adjustments
Certain types of snow removal equipment justify higher rates:
- Truck-mounted plows (¾-ton): $100–$150/hr
- Bobcats/skid steers: $125–$175/hr
- Snow blowers: $75–$100/hr
- Hand shoveling: $50–$75/hr
Charging based on equipment use helps clients understand where the value lies. You might also set minimum billing blocks (e.g., 1-hour minimum per equipment type).
Incorporating Overhead into the Formula
Don’t forget to embed your business overhead into every price quote. Add up monthly fixed costs:
- Insurance: $250
- Fuel: $400
- Equipment maintenance: $300
- Software/licensing: $100
- Marketing: $100
Total: $1,150/month
If you expect to bill 100 hours monthly, your break-even cost per hour is $11.50. Add this to your labor and equipment rates to ensure you’re not pricing below profitability.
Using Snowfall Data to Predict Seasonal Revenue
Past snowfall records help you build a reliable forecast. Let’s say your area averages 30 plowable snow events per season. If you price each visit at $60, a single residential client brings in:
- 30 × $60 = $1,800 per season
Multiply this by 50 clients and you’re looking at $90,000 in seasonal revenue. Factor in equipment, labor, and overhead to project net earnings and determine how many clients are needed to hit financial goals.
Preventing Pricing Disputes with Clear Policies
Clarity is key to client satisfaction. Include the following in all estimates:
- Snow depth thresholds for service
- What is and isn’t included (e.g., walkways, salting)
- Additional charge triggers (e.g., cars left in the driveway, packed snow)
- Timeframes (service within X hours after snowfall ends)
- Cancellation or standby fees
Standardized pricing policies reduce conflict and boost client retention.
Implementing Technology for Real-Time Quotes
Modern contractors can enhance quote accuracy using snow removal cost calculators. These tools consider area size, snow depth, and service type to deliver instant, itemized quotes. They also help streamline invoice generation and make the operation look more professional.
When paired with GPS tracking or route optimization apps, you can also reduce fuel costs and improve job completion speed, leading to higher daily capacity and revenue.
Building Profit into Every Job
Ultimately, pricing should not only cover your costs—it should reflect your expertise, reliability, and risk. A healthy profit margin ranges between 30–50% for solo operators, and 15–30% for teams with employees. If you’re consistently under these thresholds, it’s time to reassess your rate structure.
Track each job’s profit margin using this quick method:
Profit = (Total Invoice – Labor – Equipment – Materials – Overhead)
If margins are thin, raise rates, bundle services, or eliminate unprofitable routes.
How Much to Charge for Snow Removal: Client Management, Scheduling, and Billing Tactics
Once your pricing structure is solid, the next challenge is operational efficiency. Snow removal isn’t just about clearing driveways—it’s a time-sensitive, weather-dependent business that hinges on proactive planning, precise routing, and seamless communication. Managing client expectations and cash flow is just as crucial as moving the snow itself.
Managing Client Expectations from Day One
Snow removal clients expect fast, reliable service—but their definitions of “fast” and “reliable” can vary. That’s why it’s essential to set clear expectations upfront. Here are the key areas to address in every client agreement:
- Service trigger: At what snow depth will you begin clearing? (e.g., 2” accumulation)
- Timing guarantee: Will you clear before 7 AM? Within 12 hours of snowfall? Define it.
- Priority tier: Is the client on a primary route or a backup list?
- Service scope: Are sidewalks, steps, or back alleys included?
- Weather clauses: Outline what happens during continuous snowfall or ice storms.
- Cancellation or delay policy: Include terms for inaccessible properties or late payments.
Having this clarity upfront avoids conflict and ensures that pricing matches service scope.
Structuring Routes for Maximum Efficiency
Route planning is the make-or-break element of snow removal profitability. You have a limited window during and after snowfalls, and every minute of backtracking or idle time erodes margins.
Smart route planning starts with clustering. Arrange clients based on proximity, road type (main vs. side street), and service level (standard vs. urgent).
Tips for Effective Route Planning:
- Use mapping tools or GPS apps to organize your jobs in a logical loop.
- Prioritize time-sensitive clients (e.g., businesses that open early).
- Schedule residential jobs overnight or early morning, and leave low-priority ones for last.
- Minimize downtime between jobs by estimating service time and buffer accurately.
- Avoid high-traffic areas during peak commuting hours.
Dedicated snow removal software often includes routing optimization and real-time job tracking—tools that help scale operations while reducing fuel and labor costs..
Managing Emergency and On-Demand Requests
Emergency snow removal requests—like blocked driveways or sudden roof cleanings—are unpredictable but profitable. However, they can disrupt planned routes and delay scheduled clients.
Build a buffer in your schedule for 1–2 emergency slots per day, or set a flat surcharge for unscheduled visits (e.g., $50–$100 extra).
You can also offer an “on-demand” tier of service at a premium rate, which gives flexibility without undermining pre-scheduled clients. Be clear in your contract that emergency jobs do not guarantee immediate response unless specified.
Scheduling for Long-Term Clients vs. One-Offs
Not all clients are created equal, l—and neither are their schedules. Residential contracts tend to follow predictable snowfall events, but commercial properties may require:
- Pre-storm salting
- Overnight snow pushes
- Multiple visits per storm
Use a visual calendar or job scheduler to track contract-based clients separately from one-time customers. Seasonal clients should always receive top priority, while one-off jobs can be slotted in as filler or charged at premium rates.
To simplify this:
- Color-code your scheduling system by client type
- Automate reminders and updates via email or SMS
- Batch similar job types together (e.g., all small driveways on one route)
Using Technology for Scheduling and Dispatch
Digital tools have transformed the snow removal industry. Even small teams can benefit from automation to avoid double-booking, missed visits, or poor communication.
Key features to look for in scheduling software:
- Drag-and-drop route building
- Integrated weather alerts
- Live crew tracking via GPS
- Digital time logs
- Auto-dispatch to crews based on location.
- Real-time job completion updates
- SMS or email alerts for clients
When all crew members can see updated schedules on their mobile devices, your team becomes more responsive and autonomous, even in chaotic weather.
Communicating with Clients During Storms
Storm-day communication can be overwhelming if not streamlined. Avoid endless phone calls or confused texts by preparing templates and setting expectations early.
Effective client communication should include:
- Storm alert notices (“We are monitoring forecasts and are prepared to dispatch.”)
- Dispatch confirmations (“Your property is scheduled for service between 4–6 AM.”)
- Completion notices (“Your driveway has been cleared. Let us know if you need anything else.”)
- Delay updates if weather worsens (“Due to ongoing snowfall, we are behind schedule. Expect service by 10 AM.”)
Group messaging platforms, bulk email tools, or automated SMS services can simplify this communication loop.
Managing Billing and Payments
Snow removal billing varies widely—per visit, per season, per inch, or per hour. Whatever your model, the goal is to get paid promptly while keeping administrative work low.
Most common billing types:
- Per push: Bill after each visit
- Monthly: Flat monthly rate, with or without visit caps
- Seasonal prepay: Full payment upfront, often with a small discount
- On-demand: Payment after one-time jobs
Each model works well, depending on your clientele. For residential clients, prepayment offers peace of mind. For commercial contracts, net-15 or net-30 invoices are standard.
Pro Tips for Billing Success:
- Send invoices within 24 hours of job completion to stay top-of-mind
- Use mobile invoicing tools to bill on-site with a digital receipt
- Accept multiple payment options (credit cards, ACH, mobile wallets)
- Offer early payment discounts or late payment penalties
- Track overdue accounts and follow up regularly
Invoice automation tools can dramatically reduce paperwork and help you maintain cash flow throughout the season. Many allow batch invoicing, recurring billing, and customer portals.
Charging for Extras: Salt, Ice Melt, Hauling
Always itemize add-ons to justify your final invoice. These extras should have fixed or variable pricing built into your quote:
- Salt or ice melt application: $10–$50 based on area size
- Snow hauling or relocation: Charged hourly or per cubic yard
- Shoveling add-ons: $5–$15 for walkways, stairs, or porches
- Equipment surcharges: For loaders, skid steers, or de-icing sprayers
If you offer packages, consider bundling these into higher-tier services like:
- “Plow & Salt Combo”
- “Premium Full-Service Snow Removal”
- “Zero-Ice Guarantee Package”
Maintaining Positive Client Relationships
Word-of-mouth is everything in local snow services. To keep your client base loyal and low-maintenance:
- Deliver consistent service quality
- Be transparent about delays or service changes
- Offer seasonal renewal discounts
- Thank customers with small perks (holiday cards, priority renewal, free salting upgrade)
- Solicit feedback and reviews post-season
Keeping a CRM (customer relationship management) record helps you personalize service and improve client retention each year.
Building a Scalable Back-End Operation
The long-term growth of a snow removal business depends on operational backend systems. Once scheduling, routing, and invoicing are automated, you can scale without burning out.
As your business grows, consider:
- Hiring subcontractors with their own equipment
- Creating a dispatch team for large storms
- Using dashboards to monitor job progress in real-time
- Investing in integrated billing + scheduling platforms
- Offering subscription-style packages to guarantee income
Scaling Your Snow Removal Business: From Estimates to Enterprise
The snow removal business may start with a single plow and a few local clients, but with smart strategies, it can evolve into a thriving seasonal enterprise. After learning how to price services, handle residential and commercial jobs, and manage contracts, it’s time to focus on scaling operations.
Building a Recognizable Brand
Every successful business begins with a clear identity. Whether you’re serving a small town or expanding across multiple regions, branding helps differentiate your services in a competitive market. This includes developing a strong visual identity, using a consistent logo, professional invoices, and a memorable business name. Beyond visuals, your customer service, reliability during snowstorms, and ability to offer accurate estimates consistently all contribute to your brand reputation.
Crafting an Effective Marketing Plan
To attract high-volume contracts, snow removal businesses need a dedicated marketing plan tailored for the winter season. A few key channels work exceptionally well for service-based operations:
- Local SEO: Optimize your website for regional snow removal searches.
- Google Business Profile: Ensure your location, contact details, and reviews are up to date.
- Social Media: Post regular updates during snow season, including before-and-after photos, safety tips, and client testimonials.
Offline methods like flyers, yard signs, or truck decals can also bring leads in local neighborhoods. A seasonal advertising strategy ensures you remain top-of-mind when the snow begins to fall.
Seasonal Promotions That Work
Offering promotions can boost client acquisition, especially before peak season. Limited-time offers such as discounts on early contracts, bundled packages for driveways and walkways, or free salting with seasonal plans encourage sign-ups. However, pricing strategies must align with business goals. Avoid cutting prices so low that profitability suffers. Instead, calculate how incentives affect average customer value and long-term revenue.
Growing Through Referrals and Reviews
Word-of-mouth remains powerful in home service businesses. Encourage satisfied customers to refer others by offering referral bonuses or credits toward future services. Likewise, ask for reviews on major platforms. A collection of positive reviews can influence purchasing decisions and help build trust with new clients.
Automating follow-ups after service completion can increase the chances of gathering reviews. A simple message or email thanking the client and requesting feedback goes a long way in strengthening your online reputation.
Retaining Clients Year After Year
Client retention often costs less than new acquisition and creates a stable income base for your business. Annual contracts, subscription-style seasonal packages, and offering flexible options like per-push or per-inch rates give clients choices that suit their preferences.
Sending seasonal reminders or weather alerts keeps your services top of mind. You can even introduce loyalty programs where returning customers earn discounts or perks in the following year.
Diversifying Services Beyond Snow
Many snow removal businesses stay dormant in warmer months, leading to inconsistent revenue. Diversifying your offerings can help turn a seasonal operation into a year-round business. Some options include:
- Lawn care and landscaping
- Power washing
- Gutter cleaning
- Tree trimming
- Ice dam removal in winter
Cross-promoting these services can lead to additional revenue and better customer lifetime value. Offering bundled packages across seasons can also make your business more indispensable to residential and commercial clients.
Subcontracting and Fleet Growth
When demand rises, you can scale without taking on all the work yourself. Subcontracting allows you to cover more ground while focusing on client relationships, estimates, and operations. Create contracts for subcontractors that clearly outline expectations, payment terms, and insurance requirements.
If you prefer to grow your fleet in-house, begin by investing in high-efficiency equipment like salt spreaders, snow pushers, or ATV plows. Then, hire part-time or seasonal workers and train them in your standard operating procedures. This ensures consistent quality across every job.
Creating Scalable Service Packages
The best way to handle more clients without overloading your team is by designing scalable service packages. Examples include:
- Basic Service: Includes one-time driveway clearing
- Standard Package: Includes walkways, salting, and follow-up
- Premium Plan: Covers ongoing service throughout the season with priority access
These packages simplify your pricing model and reduce time spent on estimates. You can still allow customization when needed, but most clients appreciate clarity and predictability, especially during harsh winter months.
Weatherproofing Your Revenue
The unpredictable nature of snowfall presents a unique challenge for pricing models. In regions with fluctuating snowfall levels, revenue can vary drastically. One solution is implementing seasonal or retainer-style contracts that guarantee a baseline income regardless of snowfall frequency.
These contracts can include clauses for extreme events and outline clearly defined service limits. This not only sets client expectations but also ensures your business remains sustainable during both light and heavy snow years.
Monitoring KPIs and Improving Profitability
Growth must be measurable. Tracking key performance indicators such as:
- Average job cost vs. price
- Customer acquisition cost
- Equipment ROI
- Labor cost per job
- Profit margin by contract type
…helps you adjust your strategy for optimal profitability. Regularly reviewing reports allows you to identify inefficiencies, such as underpriced services or excess time spent on small jobs. With this insight, you can fine-tune your pricing formula and build long-term scalability.
Final Thoughts:
Snow removal may start as a winter hustle, but with structured pricing models, effective branding, smart marketing, and service diversification, it can evolve into a full-time business. Whether you aim to serve a single neighborhood or expand across multiple cities, the key lies in systemizing operations and focusing on client satisfaction.
Once your pricing is competitive and your services are consistently excellent, scaling becomes a matter of managing growth, not chasing it. With the right strategy, snow removal is more than just clearing driveways—it’s the foundation of a sustainable service business.