Dropping residentials...Going all Commercial...

Discussion in 'Lawn Mowing' started by eggy, Apr 29, 2001.

  1. eggy

    eggy LawnSite Senior Member
    Posts: 954

    Well guys I think it might happen this year...selling of my residentials...I love some of them but when comparing to commecial accounts I would much rather be at a commercial site. My commmercials which make up about 60% of my accounts dollar wise or so nice to mow...I am going on the fith cutting week, and still have not seen anyone from my commercial accounts other then to waive as the leave or come in, the bills get sent threw the mail and paid on time. My residentials are ok..but it seems we spend a lot of time having to be here on such and such day for a little $30-40 lawn...then ohh they want to see me not the employee..and so on...do many of you do all commercial??? Is this a crazy idea??? If I do drop residentials they will be sold to a local LCO wanting more residentials.....thoughts???
     
  2. Pauls Mowing

    Pauls Mowing LawnSite Member
    Posts: 207

    Thats one reason why I stay away from the residentials as much as possible. The commercial/industrial is a much more peaceful and profitable life.

    Paul
     
  3. John DiMartino

    John DiMartino LawnSite Silver Member
    Posts: 2,555

    Commercial is the way to go I think,trash is my biggest complaint,but they pay me to clean it up,and residentials leave hoses,rakes,toys,dog feces etcc...,then they all want it done on friday.
     
  4. kutnkru

    kutnkru LawnSite Silver Member
    Posts: 2,662

    I dont think that all Commmercial or Industrial accounts is a bad idea if you can lock them into a two year contract. This way you will know that you have x amount of income for next season.

    The main problem with this market is that they are usually not loyal and itds up to us to creatively keep within their budget or adjust to keep them happy.

    Kris
     
  5. guntruck

    guntruck LawnSite Senior Member
    Posts: 527

    Yeah but one quick thought........If im not mistaken.........commercials only worry about the lowest bid on most properties. If you go all commercial then you open yourself up to the game of underbidding the next guy to get the account. Around here it seems quality is not an issue with these places just saving a few bucks. I know its not the most sensible way to look at things all the time but what if you could command a higher price because your known for your prestigious work? I just think that would be much easier in the residential market than in the commercial if not impossible unless your in a high $$$$$ hood. Not my views in stone......just a thought......=)
     
  6. Lawn Dog2001

    Lawn Dog2001 LawnSite Bronze Member
    Posts: 1,027

    I would be careful with that. There are downsides to both commercial and residential accounts. You wont be so down on residential customers the first time a major customer decides to with hold a large months payment because one of your employees forgot to trim around a tree or two. Plus some businesses will take new bids at the end of each contract period. That means you may have to constantly adjust your price to keep jobs. There is no such thing as customer loyalty when you deal with commercial accounts. Personally I like a mix of both. I would make sure if I was going to sell off all of my residentials, that I made a big profit off of the sale. If you have a change of heart down the road it may take a while to rebuild your residential accounts.
     
  7. Ground Pounder

    Ground Pounder LawnSite Member
    Posts: 112

    What's a good way to get commercial accounts? I have heard about bidding, but that has passed for this year. Any success on cold calls?

    I am getting sick of residentials saying "Can you cut my lawn? I pay X amount of dollars."

    This is my business to run. When I tell them I have a $30 minimum, they usually say "Oh...I can't afford you." Man, I sure could use a few commercial accounts!
     
  8. cos

    cos LawnSite Addict
    Posts: 1,253

    I've made the decision to bid on alot of commercial next year. I like the peace of mind of being able to not see anyone, but tenants there. I don't have to answer to them.
     
  9. Bret Austin

    Bret Austin LawnSite Member
    Posts: 14

    what is a good formula for calculating mowing prices? commercial or otherwise.
    i only have one mowing account ( i do mainly lawn spraying ). it's commercial and i got it basically by default. whenever i give a bid it's generally really high. also, how early in the year are you guys sending bids to commercial accounts?
     
  10. eggy

    eggy LawnSite Senior Member
    Posts: 954

    I bid commercials around the end of the year, and yes some look for a low price only, others want a qaulity cut. However bidding jobs each year is part of being in a contract buisness.
     

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