Why do you charge more for commercial

[Yard]

With residential I charge $ per minute for cuts, but if I do commercial do I double this or still do the $ rate. Why would you charge more for commercial?

Another question is, how do I submit my bid. Do I type a letter with the price included in there, or just list the services and prices.

Please help, my deadline approaches for the bid.

[Scaper-S2k]

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Don't just figure on doubling your rates for commercial. You want to make good money, but there is no golden rule that says double what residential pays. You have more liability issues, higher insurance. And in most cases, if they say jump, you ask 'how high'. But the reward is good pay if done properly.

Noy sure if this pertains to you or not, but if you don't have a certificate for Workers Compensation, there isn't much need to put out a bid for commercial. They will want to see it, and proof of insurance. At least $1 miilion in coverage. If you don't have at least those 2 things, don't waste your time on the bid, they won't accept it.

[smack]

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Scaper-S2k,
What if you don't have any employee's. Do you still need Workers Comp?
I thought in our state (Ohio) you could still have a couple employee's and still didn't need comp. Help me out here.
Thanks,
Todd

[alcpi]

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In the state of Florida, workman's comp is required after 3 or more employees, most likely similiar in your state. What scaper is saying, I believe, is that most larger scale commercial properties will require this regardless of the number of employees you have. Even if its just you, they want you covered! However, if your bidding on a large property obviously you will need more employees than just yourself to do the work. Now in the case of smaller commercials, most won't give a darn.

[GrassMaster]

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Hello:

I wouldn't go as far as saying double what Residential is. I was Sky high on my residential & I charged roughly the same for Commercial, the difference mainly is Commercial are looking for folks that can do it all.

I liked all my Commercials except my Apartments & as far as Condos go, well if I was still in the Business I wouldn't even bid them unless I was Really Starving to Death! A Fact!

It is Hard to get into the Commercial end & once you do, in most cases they want you to do everything or they find someone else.

Residentials are Good & Loyal Customers compared to Commercial Accounts.

Look like a Million Bucks, Do Good Work & Charge the Crap out of them. It's Ok to charge way more, just getting it is another thing.

When you hit your Comfort Zone & Money is coming in good and steady, then raise prices on future Customers. It Took me over 3 years, about $50K in Equipment & 6 Employees to get what I Wanted & Remember Referalls from other customers will pay more Money! Because they are already sold on you. If you give a Price & you got good Money coming in, Walk off from it, don't let them talk you Down in Price?

There at the End, I was only getting 1 job per 10 I bidded on, maybe not that many. If the Place looked like crap, I didn't even bother with it. Crap means bare spots, poorly landscaped, butt ugly property or bad area.

There's Good Money in Clean ups, Spraying - Fertilizing (Need License), Aeration, Sprinkler Repairs, Pressure Washing & Etc...

Hang in there!

[Scaper-S2k]

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Smack, you need WC on any employee. You personally have the right to reject it on yourself.....unless it is a corporation......then you need to cover yourself. They have rules for presidents of corps. that may change that, but it's not a cut and dry rule.

From everything I have read, all employees need to be covered. Unless some law has changed recently, but I don't think so. But, you really should carry it for the employees sake anyway. Mr. Smack, I'm not judging you at all here, many guys don't get the WC, but you should try to do that shortly. It's not difficult, e-mail me if you have any questions.

Commercial accounts do want to see it for their own protection. It's almost a must. Now some may not ask, or you could try the ole "I'm self employeed". I can't say that 100% of my commercial contracts have asked for my WC number, but many have. Some of the smaller commercial site owners may not even think to ask. The larger ones probably will.

[alcpi]

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Like I said, each state might vary, but I am certain that in Florida you don't need workmans comp until you have actually 4 employees(not 3 as I assumed earlier). Ohio probably isn't too far off from that. I will say that it is wise to have such coverage, but can be quite costly. Be sure that your income can suffice such an expense. Risky not to have it? Most everything in business is a risk, you must evaluate your particular circumstances which may include, but not limited to work volume, working conditions, potential employee negligence, degree of risk associated with your particular equipment.

Anyway, Florida law concerning workman's comp., go to FAQ, then Employer's FAQ, under question #7.
http://www.doi.state.fl.us/wc/

[Maddog]

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Yard,

It may be a different there in Canada than here. North Carolina is simialr to what alcpi has stated. I have checked the state site here and the insurance company and workmans comp is not required until you have 4 employees. I have a freind in law school and they have just gone over some of this and he found the same thing. This may change from state-to-state and country-to-country.

What I have done this year, in preparation for pushing commercial for next year, was to pick up a bid package for a county contract. It lists all the minimums they require. It was way too large for me to take on in my stage of the business but gave me some good insight as to what they expected. They wanted at a minimum 3 other commercial account references, and due to maintaining child care and county offices they had specific times work was to be done and minimum specs that they required.

By reading through the biding data and the process that they required gave me an idea of what I may run into and what to expect or be prepared for. I figured if I could build my business to meet a government contract requirements I should be prepared somewhat better for the normal commercial senarios.