commercial vs residential

Discussion in 'Lawn Mowing' started by kyles landscape, Nov 29, 2012.

  1. kyles landscape

    kyles landscape LawnSite Senior Member
    Posts: 331

    Anyone do one or the other for a particular reaSon

    Better profit for 1? Less headaches? Less competition? Etc?

    If you do both do you try to get a certain percent or gross from one or the other etc is commercial work all the extra headaches it seems???
    Posted via Mobile Device
     
  2. In south Florida....
    Residential=Good
    Commercial=Bad
    Posted via Mobile Device
     
  3. JCLawn and more

    JCLawn and more LawnSite Fanatic
    from MI
    Posts: 5,204

    my commercial properties are a piece of cake. I like them because i can do them wayyy early in the morning or at night when things get tight.
     
  4. The main thing that I don't care for commercial is, you can't get creative. Everything is formal and kept in boxes....
    Posted via Mobile Device
     
  5. MOturkey

    MOturkey LawnSite Silver Member
    Posts: 2,741

    Many times, commercial accounts are interested in only one thing, and that is price. Some insist on accepting bids as often as every year, in an effort to keep costs at a minimum. Generally speaking, if you do a good job on residentials, you can retain the account as long as you want it.
     
  6. herler

    herler LawnSite Fanatic
    Posts: 5,145

    The commercial account is capable of spending ten times as much as the residential.
    Whether they do...
    That's another story.

    And you really need a crew to handle commercial accounts, in my experience there exist only a small handful of these types that a solo operator can tackle, so in my opinion the commercial account isn't worth it for a solo but for a crew type operation it might be the thing that keeps them afloat.
     
  7. kyles landscape

    kyles landscape LawnSite Senior Member
    Posts: 331

    I have 1 employee willing to go to 2 or 3 if need be only want 1 crew though but I want to generAte more work to justify my costs and obv make more.

    With tht bein said yes comm can generate 10x more but is it bad to have all your eggs in one basket? If I were to lose that "big" account the following year due to a low bidder then id be screwed were as if I have 100 res and lose one its no big deal
    Posted via Mobile Device
     
  8. SRT8

    SRT8 LawnSite Bronze Member
    from CA
    Posts: 1,267

    Our company is about 90% commercial.
    Once you start going after big commercial properties you just got to keep growing. You are right, if you have one huge contract and you lose it you are screwed. If you have 40 big commercial properties and you lose 1 it isn't so bad.

    I suggest going after all different types of commercial such as:
    -Home Owners Assoc.
    -Apartment Complexes
    -Business Parks
    -Industrial Parks
    -City Work

    You never know when a particular market will crash and if you have all your eggs in an HOA basket then you are twice as likely to be screwed. If you have eggs in every basket with several clients in each you will most likely be ok.

    Low ballers will always be out there, don't fear them just do much better work than them and you should be ok.
     
  9. kyles landscape

    kyles landscape LawnSite Senior Member
    Posts: 331

    How did you go about getting into your commercial and what things should I watch out for and what do I need specifically to jump into commercial
    Posted via Mobile Device
     
  10. Here in Florida all 5 that you listed pay crapola. The only good commercial work are shopping centers(to a degree). City work is bid at pennies on the dollar.
    Posted via Mobile Device
     

Share This Page