I once had an epiphany of sorts when I was buying some carpeting from a guy on the next block who owns a flooring business. I initially found myself thinking to myself “hey, this guy should give me a break on the price because I’m a neighbor”. But then I thought to myself “hey, maybe I should pay him extra because he’s a neighbor”, before settling on “OK, everybody is neighbors so let’s call it a tie and keep the regular pricing”.
And that’s been my attitude ever since. I’m not looking for any breaks from people I know. But ISTM that my initial attitude is pretty widespread. (In fact, my wife thinks the flooring guy did in fact give us a good “deal” on what they sold us.)
The only exception is if someone is using their connection to get me to buy their product or service where we wouldn’t otherwise buy it. In that case I think I’m entitled to a break. But if I’m doing it because I think it’s in my own interests to use this guy, then I think we should keep an “arms length” transaction and nobody do any friendship-based favors for anyone.
I don’t ask for it and don’t expect it but appreciate it when it happens. Not that I’ve worked in industry I could do that recently, but I’ve only considered a break it for close friends/family. Not so much just neighbors.
I don’t expect discounts from family, friends or neighbors, at least nothing beyond what they would give the general public.
I’m certainly not going to turn a discount away if offered or given.
One economic argument toward price breaks for people you know well and generally trust is that part of the price of a commercial service is to deal with low-trust environments. You have to charge enough to deal with occasional bad behavior on the part of your business partner.
With a neighbor or friend you know well and you generally trust, the risk of that kind of thing is lower, and you have other methods (social pressure) to enforce good-dealing, so it is economically efficient to exchange less money. Same way you might give a regular customer a discount because you know they are a good customer. You can know (or at least reasonably suspect) that a neighbor/friend is a “good customer” without actually having transacted business with them before.
I wouldn’t expect a close friends/family discount, but I have no problem taking one or offering one.