Student's startup gives breaks to homeowners

The 20-year-old from Yarmouth is a sophomore at Elmira College in New York. He's also in the Reserve Officers Training Corps, active in a campus Republican organization and serves as a student representative on a couple of the college's boards. Last year, he was president of his class and on the dorm council, yet still managed a 3.86 grade-point average.

Galli's business, the Maine Homeowners Association, was born out of family discussions about the high price of heating oil. He refined the idea in his dorm room and this fall he's rolling it out to the public on the Web at www.mehomeowners.com.

The concept is simple enough. To join, a resident pays $125 and gains access to discounts and special offers from the 25 vendors Galli has recruited.

The association is geared toward homeowners, Galli said, because the idea originated from an oil buyers' group organized for his family's neighborhood. Oil dealers will sometimes offer a special price to homeowners in a neighborhood because it provides a concentration of customers and saves costs by consolidating delivery times.

Galli said he and his family talked about using the same type of approach for other services and products offered to homeowners. But the idea sat on the back burner for a few months until Galli came back to Maine for the summer after his freshman year of college.

He decided to devote his time to the business, Galli said, meeting with vendors and working with Portland Marketing Group on a business plan and marketing ideas.

Galli admits that not everyone he approached signed up he estimates he talked to about 50 companies to get the 25 currently in the group.

It doesn't cost anything for a vendor or service to become part of the association's list of businesses, but they have to provide some sort of break for members, Galli said. Fielding's Oil in Scarborough, for instance, is offering $100 worth of free oil and a burner cleaning for a customer who remains with the company for a year.

That's an improvement over the 25 gallons of free oil and burner service provided to a new customer who signs up for automatic delivery.

Skillins Greenhouses is providing a 10 percent discount because the company believes it will allow them to reach new customers, said Sally Bolstridge, who manages the Falmouth store.

Bolstridge said the company likes the fact that the association will steer customers to them.

"That's what really triggered our interest because the power of a good referral can be priceless," she said.

Galli said he recognizes that not every store or service will find value in becoming part of the association. It's better for a growing company whose owners are looking to increase their customer base rather than a market leader with an established clientele, he said.

He said the vendors aren't guaranteed exclusivity, but he'll try to avoid too much overlapping to encourage the stores or services to provide the best offers to members.

Galli said his family members his father and two uncles are partners in the business provided a lot of good ideas of vendors to approach.

"Maine's really a small town and everyone seems to know somebody else," he said.

Galli said lining up the vendors was the first stage and now he and PMG are on to the second getting members.

He said the major push is starting this month with newspaper advertising. People should be quick to get the idea, he said, since they're already used to members' clubs, such as BJ's and Sam's Club, that provide lower prices for those who pay to become members.

"I feel that once we get our name out there, once we get the value of this product out to folks, I think that folks are going to join in large numbers," he said.

Galli, who has a double major in business administration and public affairs, said he's always loved business and has other ideas in mind.

"I think I know a good idea when I see one and I know a great opportunity when I see one," Galli said.

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