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Going From Residential to Commercial Air Duct Cleaning

In an effort to grow their business, many residential air duct cleaning contractors look to the opportunities the commercial market offers. This is a natural progression, as residential contractors first add light commercial projects (one story office strips, etc.) and then add multi-story commercial projects (office buildings, schools, hospitals, etc).

There are differences, however, that the residential contractor needs to be aware of so they can plan and be prepare for this transition. These differences include:

Work Time: Residential projects are typically done during the daytime while most commercial products occur during the 2nd shift (4:00pm to midnight).

HVAC Systems: Residential heating, ventilating and air conditioning systems (HVAC) systems are relatively simple to understand and are modest in size while commercial HVAC systems are larger and more complex. You'll deal with many more components like in-line heating coils, VAV boxes, fire dampers, turning vanes, internal insulation, etc.

Average Revenues: Residential project revenues will range from $300 to $700 depending on the services provided while commercial projects will range from $1,000 to 1,000,000 or more, with an average or $5,000.

Payment Terms: Residential work is great for cash flow because you get paid at the end of the project while payment on a commercial project can be 30 - 60 - 90 days or more. A good operating line of credit with a bank is needed to meet payroll and other expenses while you wait to get paid.

Project Cleaning Specification: Residential projects typically don't have a cleaning specification; the contractor must satisfy the homeowner while most commercial projects have a cleaning specification. This cleaning specification tells the contractor what the project requirements are (experience, certification, insurance, bonding ability, cleanliness verification, etc) and what HVAC system(s) have to be cleaned.

Certification: None is required for residential air duct cleaning projects but certification can be a good marketing tool to separate yourself from the competition. More and more commercial project specifications are requiring the contractor to be a member of the National Air Duct Cleaners Association (NADCA) and to have at least one certified Air System Cleaning Specialist (ASCS) to even bid on a project. In these cases certification is vital for success!

Equipment: Commercial HVAC systems are larger and more complex. They need more and larger cleaning equipment so the contractor can be productive and profitable. Labor is the single biggest cost in commercial air duct cleaning so maximizing productivity and cleaning quality is very important.

Marketing: In the residential marketplace the contractor is marketing to homeowners while in the commercial marketplace the contractor is marketing his/her services to a variety of audiences (mechanical contractors, fire/water/mold restoration contractors and engineers/architects that write cleaning specifications, etc.).
Commercial air duct cleaning is a great business opportunity for residential contractors. To be successful however, good planning and preparation are necessary.

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