Residental vs Commercial Pricing

[hbiss]

I just had a term thrown at me today that I'm having a hard time understanding. Homeowners, who by their very definition, are looking to pay less.

This was provide by an IT type who is looking to sub out the installation of data wiring in existing homes. If he is saying that the normal cost for this type of work in commercial buildings is too expensive, consider that residential most likely involves extensive fishing, aesthetics, scheduling problems and therefor greater labor costs.

In either case this is done on a T&M basis so costs reflect the actual work. If residential is more expensive, that's because it is. I also haven't come across a commercial customer lately that didn't care about cost.

So, does anybody here have a lower pricing structure for residential because they, by their very definition, are looking to pay less?

-Hal

 

[brian john]

Re: Residental vs Commercial Pricing

In our area residential customers pay more per hour.

I do not do residential but I have been told the following by contractor that do residential.

They require more bidding (more residential customers request 3 quotes).
They require more hand holding.
Pickier.
They have more call backs.Collecting money either calling to get or credit card cost more.

 

[highkvoltage]

Re: Residental vs Commercial Pricing

Here in Ohio the hourly rate for residential is about 60% to the commerical rate. Benifits and other cost is the same though. The time it takes to run a new data or installing a new electrical circuit in a home to commerical is almost double. The end cost almost the same, residential is at 75% of what I would charge a commerical customer. Tough market and I would prefer to stay with commerical work only.

 

[ribender]

Re: Residental vs Commercial Pricing

Our commercial rates are almost double that of the residential rates. As a union contractor, residential wireman makes about half of what a commercial wireman earns. Therefore we have to have two tiered pricing.