Commercial vs residential
Residential work is for homeowners; commercial work is for businesses, property managers and HOAs, with different prices, scheduling, paperwork and payment terms.
Also called
- commercial work
- residential work
- B2B vs B2C
- home vs commercial
The same service is sold differently to each. Homeowners decide quickly, pay on completion and care about the house. Commercial customers decide through a manager or board, pay on terms, need insurance certificates and purchase orders, and often want work done early, late or on a fixed calendar.
Example
How residential and commercial work usually differ
Who decides
- Residential
- The homeowner
- Commercial and HOA
- A manager, owner or board
Payment
- Residential
- On completion, or a deposit
- Commercial and HOA
- Net terms, often with a PO
Scheduling
- Residential
- A booking window that suits them
- Commercial and HOA
- A fixed calendar, sometimes after hours
Pricing
- Residential
- Per job or per square foot
- Commercial and HOA
- Per area or per visit, often on a plan
Paperwork
- Residential
- Quote and invoice
- Commercial and HOA
- Scope, insurance certificate, PO, sign-off
| Residential | Commercial and HOA | |
|---|---|---|
| Who decides | The homeowner | A manager, owner or board |
| Payment | On completion, or a deposit | Net terms, often with a PO |
| Scheduling | A booking window that suits them | A fixed calendar, sometimes after hours |
| Pricing | Per job or per square foot | Per area or per visit, often on a plan |
| Paperwork | Quote and invoice | Scope, insurance certificate, PO, sign-off |
Track it in Birdy
Leads, quotes, jobs and invoices on one customer record, set up with your own data.
Related
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- GlossaryHOA (homeowners association)An HOA is the association that runs a neighborhood's shared areas and rules, and a common commercial customer for cleaning entrances, sidewalks and pools.Read
- GlossaryNet termsNet terms are the number of days a customer has to pay an invoice after it is issued, such as net 30, common with commercial and HOA customers.Read
- GlossaryAccounts receivableAccounts receivable is the money customers owe you for work already invoiced but not yet paid.Read
- GlossaryService planA service plan is a signed agreement for repeat visits on a schedule, at agreed prices, such as a house wash every spring and fall.Read