Poll:Residential vs Commercial Accounts

Discussion in 'Starting a Lawn Care Business' started by bladelawn, Feb 7, 2007.

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Residential vs Commercial vs Mixed

  1. All Residential

    15 vote(s)
    20.0%
  2. All Commercial

    7 vote(s)
    9.3%
  3. Mixed

    53 vote(s)
    70.7%
  1. bladelawn

    bladelawn LawnSite Member
    Posts: 58

    What do you guys think? Is it better to have all residential or commercial accounts, or to mix them? They each have uniqueness to them. Having just residential accounts means you might not need as much equipment, but you need more accounts to make the same money. All commercial means more equipment, less accounts for same $. What do you think? Any experience/preference?
     
  2. lawnpro724

    lawnpro724 LawnSite Silver Member
    Posts: 2,201

    You really need to have both to be successful in this business with a mix leaning more toward commercial.
     
  3. Raven386

    Raven386 LawnSite Silver Member
    from CT
    Posts: 2,160

    I like having commercial accounts because you can make 5X more than you can on 1 average residential lawn. and you only have to drop the trailer gate once. I like residential lawns, because instead of 10 people complaining at a commercial. theres only 1 or 2 at a residential lawn.

    IMO you need both.
     
  4. DuraCutter

    DuraCutter LawnSite Senior Member
    Posts: 806

    Commercial equals more profits. I lump in condos, townhouses into commercial because it's a company running the project. I won't do work for a self run Condo because they lack the expertise of a manager and are hard and stupid to work for.

    Not many more hassles than residential but way better pay. My kinda of work. :walking:
     
  5. TURFLORD

    TURFLORD LawnSite Senior Member
    Posts: 834

    I prefer all residential. I don't see how amount of equipment makes a difference. If anything you need more for residential work. Commercial is too competitive and there's no customer loyalty whatsoever. They leave you for a dollar less a week and you have to rebid every year. What a bunch of bullsh!t. All my experience with comercial has been nickel and dime games. Think about the commercial frame of mind. Myself, being a landlord, can understand the costs cut profits. My residential customers come up to me with a bag of money and say "Make it look good".
     
  6. YardPro

    YardPro LawnSite Gold Member
    Posts: 3,563



    have you really run accurate numbers on these???

    i ask because tou say higher profits... this is usually not the case. Net profits are usually lower percentage wise than residental accounts.

    there is more volume of work, so the numbers are higher, but percentage wise, the percent profit is usually lower.

    we maintain about $500K worth of properties, these are a mix. we have several 60K plus per year accounts. although the total numbers are higher, the percent profit is lower than residentals. we net about 15% on comercial and about 25% on residential.
     
  7. LawnSharks

    LawnSharks LawnSite Senior Member
    Posts: 300

    Mostly residential but a few commercial accounts. These guys are right: more profit in commercial, less headaches but I can't leave the residential folks because they are who made us who we are!!!
    Never forget your friends!!
     
  8. Ecoscape01

    Ecoscape01 LawnSite Senior Member
    Posts: 375

    Turflord........why the political animousity
     
  9. bladelawn

    bladelawn LawnSite Member
    Posts: 58

    lol why not?!?! but lets not turn this into a political forum. you all know how that would turn out. anyways, thanks for weighing in. i myself have only residential from last year, and am working towards adding commercial this year. in the previous business i started, i had about a 60/40 mix between commercial and residential, respectively. it worked pretty well. do any of you guys plow as well, and if so, do you work it in with your summer contracts or what?
     
  10. LB1234

    LB1234 LawnSite Gold Member
    Posts: 3,210

    I believe you haven't targeted the correct commercial accounts.

    Granted I'm not a large company, we only have a total of about 20 accounts of which 8 are commercial. However, out of these, 5 have been with me for years...mostly they just ask to have something in writing by the end of February for them to sign...they never go out to bid for property maintenance. IMHO, I believe commercial accounts are looking more for a reputable company, with a record of showing up and performing quality work. Price is not as high on the value scale as it is for most residents. Of course this is what I have seen over the years...I'm a little surprised by your post.
     

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