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Ideas of how to land more commerical accounts?

Discussion in 'Lawn Mowing' started by Xcellent Lawn, Feb 27, 2005.

  1. Xcellent Lawn

    Xcellent Lawn LawnSite Member
    Messages: 38

    I handle mostly residential work and am looking to add more commerical accounts this yr. Any ideas how to aproach commercial accounts such as apartments, church's and business's would be great. Whats the difference in priceing and bidding on business's rather than residential.

  2. Mowman29

    Mowman29 LawnSite Member
    from OH
    Messages: 106

    It probably to late to get anything this year most bids by companies are done by the End of Feb 1st week of march. The best thing is to call and find out who takes care of all the paperwork. They usually have a Property manger for all the accounts in that area. You need to start calling in Dec Early Jan to be considered to be able to bid on these accounts. Each one may require something different in insurance and the way their contracts are written for you to do the work.

    They usually want to know about your company. You need to have a good portfolio
  3. Mo Green

    Mo Green LawnSite Bronze Member
    Messages: 1,487

    Walk into the business that you wish to service, ask for the property manager, give him a card, offer your superior services, wait for a reply.
  4. theturfsurfer

    theturfsurfer LawnSite Member
    from mtka,MN
    Messages: 102

    First , I hope you like bidding every year for the same property. My experience with commercial accounts is that they always pay attention to the bottom line. They will always entertain a lower bid regardless of how well you do. If you should be asked to bid charge the same as any other lawn. Your costs haven't changed just because of the property. Try and mow a commercial property that one of your res. customers owns.
  5. Rougher83

    Rougher83 LawnSite Member
    Messages: 34

    Let me pose this question too you. How would you price based on the following scenario.

    Property A. Lot size 70 x 150 Residential.
    Property B. Lot size 70 x 150 Business peddeling widgets.

    Assuming your time and effort are exactly the same on these two properties, (i.e. mowing, trimming, edging, shrub work, mulch, etc.). My question is would/should your pricing be any different? In my opinion "NO". It doesn't matter that one is a residence and one is a business, your selling your time and services. The only considerations are your cost plus your desired profit, keeping in mind that you want to be competative...then you arrive at a price, doesn't matter if its widgets are us or jonh q. public.

    I don't mean to be condescending, but I believe we have to lose the thining of residential -vs- commercial. Pricing is pricing!
  6. Precision

    Precision LawnSite Silver Member
    Messages: 2,995

    pricing is not always pricing.

    commercial demands $2 - 5 million in insurance. They pay for that.

    Parking lot vs driveway. Big difference.

    drainage ditches and extensive plantings. Big difference.

    Time and other expenses are most often much higher on commercial properties so charge accordingly

    I estimate residential at $60 per hour for me and $45 for helpers

    I estimate commercial at $75 per hour for me and $60 for helpers.
  7. Rougher83

    Rougher83 LawnSite Member
    Messages: 34


    Pricing is pricing! If a job requires additional insuracnce, then that is part of your cost that you take into account when determining a price for a job. I know what you are getting at. Commercial accounts do require a larger amount of insurance due to the increased liability, however, when I give an estimate for a residential and a commercial property, I do not discriminate the two. Each job is bid at what it costs me to operate plus what I allow for profit.
  8. scarr133

    scarr133 LawnSite Senior Member
    Messages: 277

    I agree with Rougher on this one
  9. theturfsurfer

    theturfsurfer LawnSite Member
    from mtka,MN
    Messages: 102

    A few replies back someone said his expenses are higher on his commercial account. One example was higher insurance, I assume that this policy also covers you on residential properties. All the other examples listed just take more time thus a higher rate not a different rate. If a property takes 1 hour to mow it takes one hour.

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