commercial accounts! Am i crazy?

Discussion in 'Lawn Mowing' started by Eric's Lawnservice, Sep 5, 2013.

  1. Bagit

    Bagit LawnSite Member
    Posts: 200

    I talked to a Mcdonald's rep. a few years back and found out what they were paying per month on each prop. It was $250 a month for once a week full service. I've hardly ever seen a Mcdees around here needing a cut or look shabby at all. A whopping $3,000 a year per prop, but if they've got ten props that's $30,000 . . .
     
  2. ringahding

    ringahding LawnSite Senior Member
    Posts: 612

    So they "Like Your Work" but are not willing to pay? NEXT !
     
  3. JimLewis

    JimLewis LawnSite Fanatic
    Posts: 6,842


    This is one of the main reasons I decided to get out of the commercial market about 10 years ago. I was getting stuff like this on almost every bid. It was really shocking how cheaply commercial lawn care companies were willing to work. Then you add to that the pressure of having to re-bid every year, no loyalty, and 30 people in whatever commercial complex it is constantly calling you because you didn't do something (that wasn't part of your contract, but they don't know that), etc. It just wasn't worth it. I make 3x more on the residential side. I don't need big commercial accounts if they're not going to be profitable and just a royal PITA. I went all-resi. over 10 years ago and never looked back. I'll probably never enter that market again.
     
  4. Tom-N-Texas

    Tom-N-Texas LawnSite Senior Member
    Posts: 370

    I'm with you on commercials; I've never liked them though I still do a few of them. The right commercial property can be like gold if you price it right and get along we'll with the owner/manager but there's generally a lot of competition for the big stuff and managers have a tendency to go with the lowest price, which I'm not generally interested in being the cheapest. And as a side note I just simply prefer doing small residentials. Less work...more breaks...less worry and less looking over your shoulder because all your eggs are in one basket.
     
  5. lawndesigns

    lawndesigns LawnSite Member
    Posts: 5

    Same issue here in the Islands, alot of cheap labor imported and most business here low ball! Common thing they do is ask the customer how much you used to pay for service then deduct $5 to $15 off the lowest price. Its stiff competition here in Cayman. Its a small island about 50K persons and over 20 landscaping companies iirc.
     
  6. rootytalbot

    rootytalbot LawnSite Senior Member
    Posts: 273

     
  7. rootytalbot

    rootytalbot LawnSite Senior Member
    Posts: 273

    Are you talking about 250 dollars a month for 12 months? I assume that you are. If so I think that your price might have been a tad high.

    3,000 dollars (the lowballers bid) for a 12 month contract, delivering the services you have listed. I would not be that cheap, but I am legit and have some overhead.
    Your price would have been 10,200 for the services you have listed - that sounds pretty high to me. I would have shot for around 4500 to 5000 for that job. If I read it correctly 850 a month was your bid??? Not sure.
     
  8. RonWin

    RonWin LawnSite Senior Member
    Posts: 684

    Obv dumb scumbag who has absolutely no idea how stupid his quote was. I bet he spends more money on gas than the 250 he makes.
     
  9. Eric's Lawnservice

    Eric's Lawnservice LawnSite Member
    Posts: 173

    Thanks for all the reply's. Its been a crazy week I just now have time to read them all. I am aware ny price may have been on the high side. But for what it's worth this was my first commercial bid. And quite honestly I don't see myself breaking into the commercial market anytime soon. Not just because my price may have been a tad high. But I won't do something of that scope for cost. I just sold a lawn renewal and mulch job that will gross me more than what that guy gets all year, as well as added on another 12 month residential yard. So I'm not worried about it. I love my residential customers they have gotten me to where I am so far. I just can't believe how much cheaper these companies sell to commercial as opposed to residential. Its the same service they sell to grandma for a premium price that they sell to a commercial property for basically cost. I appreciate all the encouragement and its good to know I'm not alone in dealing with "commercial craziness" thanks again everybody, lawnsite is a great site because of its members.
     
  10. BCL Services

    BCL Services LawnSite Member
    Posts: 177

    If you can get the RIGHT commercial accounts they can be extremely profitable as many of them want regular extras and will spend good money to keep the properties fresh and updated with mulch, annuals etc. The key is landing those gems. I have found that office buildings, especially medical / legal office buildings are a great avenue to pursue. $$$ There are many cheap people out there, the key is finding the people that appreciate your hard work and will spend for your services.
     

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