Getting into pricing more commercially ? Expanding.

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Nicharrison24
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Getting into pricing more commercially ? Expanding.

Post by Nicharrison24 »

Hi, I’m wondering if any tradesmen can advise, or has experience in expanding from mainly residential work to more commercial also ?
My workload is good through word of mouth and small advertising, but I’d like to know how to be noticed more by offices and businesses etc.

Thanks in advance
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someone-else
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Getting into pricing more commercially ? Expanding.

Post by someone-else »

Can't help with "getting noticed" but what I will say is have you got a big bank balance?
When working in commercial premises you will either be a contractor or subcontractor. In a domestic situation you can say ........."well Mrs Jones 50% up front 50% on completion" you are both happy. That doesn't happen on a commercial world, you have to pay for all materials yourself first, then when the job is finished you submit an invoice, most companies will pay in 30 days, some won't take you on unless you agree to 90 days, commercial jobs are often big, (lots of materials for you to spend out on) then you have all the PPE to spend out on that you should, but never have when doing domestics.

My point being that small companies often go under because they were not paid by the bigger company. So hence my question, have you got a big bank balance? and if you do one big job, you may get another big job, but still no money yet as the 30 days from the last job are not up yet. (assuming they pay on time)
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Dave54
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Getting into pricing more commercially ? Expanding.

Post by Dave54 »

And you have to be VAT registered if you're not already.
And as said above, getting paid promptly is a well known problem with commercial work.
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Getting into pricing more commercially ? Expanding.

Post by Nicharrison24 »

Thanks SE & Dave.
I do work on and off for a company with offices and I’m on a 45 day invoice, but like you know, and mention, it does always end up about 60 days for me to be paid. That’s why for now I do the domestic work as well. I was wondering if for like school work and businesses etc that other than being VAT registered, there is another way of gettting into the market ?
Perhaps it isn’t that simple though.
Thank you for the replies
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Tom d'Angler
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Getting into pricing more commercially ? Expanding.

Post by Tom d'Angler »

If you can get enough domestic work my advice would be to steer well clear of commercial work. I have heard far too many horror stories of late payments (90 days is common), companies going bust before paying and then reopening the next day under a different name, and generally being a pain in the backside when it comes to actually doing the work (filthy dirty premises, not moving anything out of the way, expecting you to work around employees still sitting at the desks, unrealistic health and safety expectations, etc.).

I realise there are quite a few professionals on here who do commercial work successfully but the whole late payments thing is more than enough to put me off.

There is plenty of domestic work out there, particularly as we are going full speed ahead into a deep recession. People won't be moving house for a while so they'll be spending some of that deposit money on doing up their current home. I started full time at the end of 2007, just a couple of months before the Great Recession hit the UK, and I was busy right from the start of it.
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Getting into pricing more commercially ? Expanding.

Post by Dave54 »

Tom d'Angler wrote:
Mon Jun 29, 2020 3:55 pm
If you can get enough domestic work my advice would be to steer well clear of commercial work. I have heard far too many horror stories of late payments (90 days is common), companies going bust before paying and then reopening the next day under a different name, and generally being a pain in the backside when it comes to actually doing the work (filthy dirty premises, not moving anything out of the way, expecting you to work around employees still sitting at the desks, unrealistic health and safety expectations, etc.).

I realise there are quite a few professionals on here who do commercial work successfully but the whole late payments thing is more than enough to put me off.

There is plenty of domestic work out there, particularly as we are going full speed ahead into a deep recession. People won't be moving house for a while so they'll be spending some of that deposit money on doing up their current home. I started full time at the end of 2007, just a couple of months before the Great Recession hit the UK, and I was busy right from the start of it.
Yes, when I was sparkying I did some commercial work. Had some good jobs, but generally the pain outweighed the gain.
Domestic jobs are, (in general at least), much more straightforward.
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Post by woody8086 »

I made the mistake of selling up, Going to Spain and getting ripped off in the late 80's.
Coming back penniless in 1991 I did the following and successfully set up a thriving business.

It, of course depends on your trade but in my instance I did the following:

I created an A5 flyer & had a really good business card (mine were plastic)

I wrote to every Church, Estate Agent, Grant Maintained School (Not LEA) that I could find in the areas I felt happy to travel to.

This worked very well, admitted I was on my arse so I had no choice but to be mildly aggressive in trying to get noticed.
Once I was "IN" the schools for instance used me for almost everything in the "repairs" budget from a broken window, blocked sewer's, gas leaks, Major re-roofing etc etc.

The reason I chose them was because they "Always have needs" Estate agents need locks changed in an emergency, or an empty property freshened up

You do however, sometimes have to jump up whilst having you tea to respond to a callout, if you don't someone else will.

So really, look at places that will have repeat needs and target them.

Hope it helps

edit:
I notice an earlier thread just now.

I have never taken an advance payment on a job, I would take a 1/3rd at first lift if building an extension, otherwise I would get all my materials on the job, start the work THEN ask for a part payment if I thought it necessary but never 50%, that way the customer feels in control and when they see work progressing ok they will pass over more money.

Commercial works I mention above is usually 30 days from completion, written into your quote, when invoicing reduce (if you can) by 10% if paid in 14 days, I used that a few times.
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Nicharrison24
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Getting into pricing more commercially ? Expanding.

Post by Nicharrison24 »

woody8086 wrote:
Mon Jun 29, 2020 6:30 pm
I made the mistake of selling up, Going to Spain and getting ripped off in the late 80's.
Coming back penniless in 1991 I did the following and successfully set up a thriving business.

It, of course depends on your trade but in my instance I did the following:

I created an A5 flyer & had a really good business card (mine were plastic)

I wrote to every Church, Estate Agent, Grant Maintained School (Not LEA) that I could find in the areas I felt happy to travel to.

This worked very well, admitted I was on my arse so I had no choice but to be mildly aggressive in trying to get noticed.
Once I was "IN" the schools for instance used me for almost everything in the "repairs" budget from a broken window, blocked sewer's, gas leaks, Major re-roofing etc etc.

The reason I chose them was because they "Always have needs" Estate agents need locks changed in an emergency, or an empty property freshened up

You do however, sometimes have to jump up whilst having you tea to respond to a callout, if you don't someone else will.

So really, look at places that will have repeat needs and target them.

Hope it helps

edit:
I notice an earlier thread just now.

I have never taken an advance payment on a job, I would take a 1/3rd at first lift if building an extension, otherwise I would get all my materials on the job, start the work THEN ask for a part payment if I thought it necessary but never 50%, that way the customer feels in control and when they see work progressing ok they will pass over more money.

Commercial works I mention above is usually 30 days from completion, written into your quote, when invoicing reduce (if you can) by 10% if paid in 14 days, I used that a few times.
Thanks woody that’s a great reply. Also I’m glad that you’re doing amazing for yourself. You’ve clearly worked hard for it mate
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