High-end Residental or Commercial, which brings more $?

[Lawnguy6340]

The title pretty much says it all. Is there more money is High-end residential or in average commercial properties?

[jrservices]

The title pretty much says it all. Is there more money is High-end residential or in average commercial properties?

I personally believe high-end residential, IMHO.These people are generally willing to spend whatever it takes to get high quality work. Generaly, there are a lot of add-ons, so there is more $$$$ on those jobs.

[RRS]

I'd say high end resi also. For the same reasons John mentions. Also, around here the average commercial accounts are extremely competetive. The residentials give you more chance to develop a long term relationship where the average commercials a lot of time will dump you over ten dollars.

In my opinion the best accounts are the residentials that allow you to give a set number of manhours that will be spent on the property each week throughout the year and everything else is done on T&M basis with no questions asked. One day I plan to only have accounts like this, but it takes time.

Heading in to the home stretch of my fifth year in business I've finally gotten to a point where I won't have any customers that aren't paying a set price 12 months out of the year. I have a few mow-as-needed customers that I've had since I started that I'm going to let go in two weeks. It's going to be a little sad becuase I started cutting some of these people's places with a lawnboy in the back of my truck five years ago, but they just won't pay on a 12 month basis.

[jrservices]

In my opinion the best accounts are the residentials that allow you to give a set number of manhours that will be spent on the property each week throughout the year and everything else is done on T&M basis with no questions asked. One day I plan to only have accounts like this, but it takes time.

Heading in to the home stretch of my fifth year in business I've finally gotten to a point where I won't have any customers that aren't paying a set price 12 months out of the year. I have a few mow-as-needed customers that I've had since I started that I'm going to let go in two weeks. It's going to be a little sad becuase I started cutting some of these people's places with a lawnboy in the back of my truck five years ago, but they just won't pay on a 12 month basis.

Couldn't agree more. I also have begun to jettison some accts that I have had for a while for the same reason. Although I will still bid commercial props this year, the loyalty isn't there. Like Casey says, they will drop you for the low bidder. I don't want to be the low bidder just to get the job. I have walked away from several jobs this year for that reason. I have gotten to the point that I won't do a job, unless the $$$ are there. Just too many expenses in business, you just have got to recoup them.

[Lawnguy6340]

Sounds about right. It seems like the commercials would be much more of a price-driven market, whereas high-end residentials would be more focused on quality of work than price. Thanks for the replies guys. This gives me more of any idea for the smarter choice.

[kiddinla]

well, all i know is residential. i have about 10 customers who i've had for 8 years. They genuinely care about my well being, and tip, etc. The other 15 just leave a check under the mat, which is fine by me. I also have some mow as needed, but don't have the customers to drop them yet. i recently grew some balls and told a lady that her yard was too tall and it would burn my engine, which it has in the past. I have to say that i was surprised that came out of my mouth, but i guess if you get burned enough, you'll get tough with them. I do have a little experience with commercial - i partner up with a buddy, and we do some pastry shops and a plant; and i agree with the above statements (price driven market). For me, i have to come up with specific strategies for each customer.