Commercial jobs carry different costs that must be priced in.
In this article
Overhead
Paperwork and compliance.
Payment terms
Net 30 or longer.
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Insurance
Higher limits.
Access
Badges and schedules.
Volume
Discounts carefully.
A closer look
Many companies give commercial clients residential prices plus a discount for volume, then wait 60 days for payment. Calculate the true cost of terms, insurance and admin before quoting.
Where to start
Calculate the cost of carrying payment for 45 days and add it to commercial pricing.
An example
A company adjusted commercial rates for terms and paperwork. Margins improved without losing key accounts.
Common mistakes
Discounting too much, ignoring terms and underpricing after-hours work.
What to track
Track margin by customer type and days to payment.
Questions to ask
How long do commercial clients take to pay? What does our insurance cost for commercial work? How much admin time does each commercial account need? Which accounts are actually profitable?
Price every call so it pays.
We help service businesses set clear policies, book better jobs and turn more calls into profitable work.
Frequently asked questions
Should commercial work be priced differently?
Yes. Commercial work often has longer payment terms, higher insurance requirements, access restrictions and paperwork that add cost.