Value of an account

Discussion in 'Business Operations' started by newbie35, Jan 30, 2007.

  1. newbie35

    newbie35 LawnSite Member
    Messages: 67

    Are commercial accounts worth more money than residential accounts in you opinion. Just curious to see what you guys think.
  2. Tim Wright

    Tim Wright LawnSite Bronze Member
    Messages: 1,034

    No, not if you are bidding on the man hours. But, it is worth the same in different ways.

    1. Most are levelized billing, so you mow through the summer and get paid for twelve months - worth something.

    2. Is guaranteed income for length of contract unless you totally screw it up.

    3. Easier to build faster your equipment based on numbers, and use larger contracts for this, while building your residential base, which will remain more loyal and be long term customers generally.

    So it really depends on the account, how you bill, what your goals are, and what you do with them.

    On the other hand it is easier to loss your shirt if you bid incorrectly and have to eat more than a residential lawn here or there.


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