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How to get commercial accounts ...
When I was in the bizz, I was mostly commercial which is a completely different ball game compared to residential. Monthly invoices sent to commercial customers are usually in terms of thousands, not hundreds ... so big numbers are possible with a relatively low number of clients ... but loyalty is always on the front burner. You need a special strategy to be in, stay in, and compete for commercial. All different size properties ranging from a few thousand a year in billings up to hundreds of thousands (some are million dollar contracts) so you can see that there are different "levels" of being in the game.
For anybody contemplating entering medium to large scale commercial I offer this advice:
1. Know your job costs (100%)or stay away because it's a numbers game and "they" know the numbers (better) than you do, even before you walk in the door. If you don't know what you're talking about, you can easily become "fair game" for hunters! Learn the ropes "before" you go sailing.
2. Know your payroll and hours invested in each account .. working capital needs, at risk dollars, equip carrying debt capacity.
3. Have dependable employees because you don't want to look at 50 or 100 acre sites with nobody around to mow them. If you haven't solved the employee problem, stick with "tiny" commercial accounts.
4. Be prepared to bid a brand new 50% to 100% of existing gross sales each and every season and don't ever think that you're still in business at any point in time. Assume that with each contract expiration, you're gone, out of business in a way ... unrealistic but "safe" because yes, you'll have a retention rate .. or "rotation" of accounts. Be prepared.
5. Basically (large) commercial puts you at risk of non-performance and if you can't handle it, you're in trouble. Be ready for six figure balances in accounts receivable. Be ready to borrow working capital at a moments notice, have a line of credit on standby.
6. Don't bite off more than you can chew. Start with small sites, build up from there, maybe even limit commercial to a certain % of total sales.
7. Look for well known "brand names" to work for. This will help your work reference list. Instead of having an account such as Mr. Fixits Transmission Repair (consisting of one acre) ... better to have a local Marriott Courtyard facility of the same size. Pick your customer targets wisely.
8. Balance the year around workload. Ask yourself in advance of choosing targets how well the work "balances out". Winter work versus in season work. Sometimes commercial is "heavy" on winter, light on summer or the other way around. Sometimes commercial lends itself to a 12 month full season account (paid snow or no snow) which in itself may be an advantage.
Getting your foot in the door? ...
First find out (who) is in charge of awarding the contract ... Contact that person by phone and try this ...
"Mr. Smith, my name is Joe Brown of Brown Landscaping and I'd like to visit your company to perform a Grounds Maintenance Audit."
"I think we can reduce your maintenance costs." "It wouldn't require any of your time away from your schedule."
"All I need is your okay to come out, have a look around to determine what your maintenance needs are." "It's quite possible we can reduce your costs by 10% of more, and I'd like to give it a try." "Would you be interested in having me do that? "
"No, Mr. Smith, we don't need a copy of your grounds specifications, and you don't have to do a walkaround with us." "It's better if I do an independent assessment of your basic needs."
"When I have completed my findings I'll get back to you and see how our program compares to your own." "If you like what you see, we can schedule an appointment to go over the details."
For more ideas on how to advertise and sell your services ... visit the bookstore link below and look for the Sales Booster Book Package.
Contributed from Phil Nilsson
All rights reserved - "Selling To Commercial Customers" Copyright 1995, 1998, 2002 by Nilsson Associates
Phil Nilsson
Nilsson Associates Consultants
Visit Lawn Service & Landscaping Book Store
When I was in the bizz, I was mostly commercial which is a completely different ball game compared to residential. Monthly invoices sent to commercial customers are usually in terms of thousands, not hundreds ... so big numbers are possible with a relatively low number of clients ... but loyalty is always on the front burner. You need a special strategy to be in, stay in, and compete for commercial. All different size properties ranging from a few thousand a year in billings up to hundreds of thousands (some are million dollar contracts) so you can see that there are different "levels" of being in the game.
For anybody contemplating entering medium to large scale commercial I offer this advice:
1. Know your job costs (100%)or stay away because it's a numbers game and "they" know the numbers (better) than you do, even before you walk in the door. If you don't know what you're talking about, you can easily become "fair game" for hunters! Learn the ropes "before" you go sailing.
2. Know your payroll and hours invested in each account .. working capital needs, at risk dollars, equip carrying debt capacity.
3. Have dependable employees because you don't want to look at 50 or 100 acre sites with nobody around to mow them. If you haven't solved the employee problem, stick with "tiny" commercial accounts.
4. Be prepared to bid a brand new 50% to 100% of existing gross sales each and every season and don't ever think that you're still in business at any point in time. Assume that with each contract expiration, you're gone, out of business in a way ... unrealistic but "safe" because yes, you'll have a retention rate .. or "rotation" of accounts. Be prepared.
5. Basically (large) commercial puts you at risk of non-performance and if you can't handle it, you're in trouble. Be ready for six figure balances in accounts receivable. Be ready to borrow working capital at a moments notice, have a line of credit on standby.
6. Don't bite off more than you can chew. Start with small sites, build up from there, maybe even limit commercial to a certain % of total sales.
7. Look for well known "brand names" to work for. This will help your work reference list. Instead of having an account such as Mr. Fixits Transmission Repair (consisting of one acre) ... better to have a local Marriott Courtyard facility of the same size. Pick your customer targets wisely.
8. Balance the year around workload. Ask yourself in advance of choosing targets how well the work "balances out". Winter work versus in season work. Sometimes commercial is "heavy" on winter, light on summer or the other way around. Sometimes commercial lends itself to a 12 month full season account (paid snow or no snow) which in itself may be an advantage.
Getting your foot in the door? ...
First find out (who) is in charge of awarding the contract ... Contact that person by phone and try this ...
"Mr. Smith, my name is Joe Brown of Brown Landscaping and I'd like to visit your company to perform a Grounds Maintenance Audit."
"I think we can reduce your maintenance costs." "It wouldn't require any of your time away from your schedule."
"All I need is your okay to come out, have a look around to determine what your maintenance needs are." "It's quite possible we can reduce your costs by 10% of more, and I'd like to give it a try." "Would you be interested in having me do that? "
"No, Mr. Smith, we don't need a copy of your grounds specifications, and you don't have to do a walkaround with us." "It's better if I do an independent assessment of your basic needs."
"When I have completed my findings I'll get back to you and see how our program compares to your own." "If you like what you see, we can schedule an appointment to go over the details."
For more ideas on how to advertise and sell your services ... visit the bookstore link below and look for the Sales Booster Book Package.
Contributed from Phil Nilsson
All rights reserved - "Selling To Commercial Customers" Copyright 1995, 1998, 2002 by Nilsson Associates
Phil Nilsson
Nilsson Associates Consultants
Visit Lawn Service & Landscaping Book Store
