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This is my second year in business and am wondering if I am better off having more residential or commercial accounts. I was under the impression that I could make more money on commercial properities, but I am finding out that they take longer and don't pay as well. Is this your experience too, or am I doing something wrong?
 

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Originally posted by Crew Cut Lawncare
I was under the impression that I could make more money on commercial properities, but I am finding out that they take longer and don't pay as well.
I think everyone thinks this when they first get started. Really, you'll make higher year end grosses, but you won't neccesarily make any more profit. You'll definitely increase costs, you'll need more equipment, more employees, etc. It can really be a case of diminishing returns.

The very most efficient operation is the one man solo. I know that it doesn't sound like it, but so many of us actually start outsmarting ourselves when we start thinking that if a little is good, a whole lot more will be better. But the man working alone can get a much higher man hour rate, establish an excellent rapport with the customer, treat his equipment with greater care and have more jingle in his pocket with a lot fewer headaches.
 

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Mix it up and find your niche. If you already have a crew in place why not utilize their full potental? If you're running solo, like me, you may try your hand at some small commercial accounts to see if you like it.
 

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Originally posted by The Mowerdude
I think everyone thinks this when they first get started. Really, you'll make higher year end grosses, but you won't neccesarily make any more profit. You'll definitely increase costs, you'll need more equipment, more employees, etc. It can really be a case of diminishing returns.

The very most efficient operation is the one man solo.
Maybe...and maybe not.

When I was a one-man band 9 years ago, I had to work in the winter also to pay bills. Now that I have people working for me and paying them $15 - $20 per hour (and yes, there are other incremental expenses that go along with more than just the labor expense), but I am charging $65 per man hour. Guess what...I don't have to work in the winter anymore...except to plow which I really don't mind doing anyway.

The rest of the time I relax, go away, play golf, read, etc. You can only make X amount of dollars being solo (no two ways about it). I agree, there are diminishing returns. But in the end, there is MORE money.
 

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you will find out what works best, residential or commerical. I think that I am personally going to try to switch over to more commerical next year because they seem to like long term contracts compared to residential which will make things easier for me
 
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