View Full Version : Aquiring new Accounts
03-03-2001, 08:42 PM
I have been approached about buying 120 accounts from another company. Chemical turf care. The 2000 season generated $ 24,000. The owner says make an offer. Does ano-one have an opinion? Buying just accounts, no equipment.
03-03-2001, 11:22 PM
Originally posted by RODNEY ANDERSON
I have been approached about buying 120 accounts from another company. Chemical turf care. The 2000 season generated $ 24,000. The owner says make an offer. Does ano-one have an opinion? Buying just accounts, no equipment. ?? are u getting 24000.00 or paying 24000.00 sound like 24000.00 per season devided ,by120 accounts =200.00 devided by 31 cuts per season = $6.45 per cut per account ?? is that right ? let me know if i made a mistake??
03-03-2001, 11:39 PM
$6.45 per cut per account ?? is that right ? let me know if i made a mistake??
Chemical Turf Care sounds like a fertilization company to me.
03-04-2001, 10:37 AM
i don't do much chemical apps but it sounds like its a small bus.....possibly worth a small bit
120 customers..4 apps each(approx)......480 apps
24000..divided by 4800.....50.00 per app
guessing residential yards
if you can get it cheap, would be worth the investment,low overhead,...........of course after you take out labor and materials seems like there would not be a lot of pfofit
but for a few grand to buy would be worth the gamble to me
03-04-2001, 12:17 PM
Are you buying contracts?? If not I would only offer half of what is generated for a year. Plus I think that $24,000 is profit if so then you can throughout all the previous numbers for prices and turn them into profit per appl.
03-04-2001, 05:38 PM
I would ask to see the books and like lonestar asked are you buying the contracts? Is there any multi year or just seasonal? Get all the info you can before even coming close to a decision.
03-04-2001, 06:42 PM
These accounts are for fertilizing. I have seen the books and they look lagit. But the guy who has them wont say how much he wants for them and have not been able to gat an idea from anyone what to pay for them. Thse accounts are not mowing. Fertilization only. $ 24,000 is gross revenue.
I was thinking a certian amount for each account or should it be on the gross sales? Im very much interested in them because the current owner is not practicing IPM and going overboard with the chemicals and usind Anderson products which are way out line for the lawn care industry. Im able to turn a 67% profit on my accounts and Im looking to it on these also. I just dont want to look a fool when approaching him.
03-07-2001, 07:11 PM
After you look at the books keep one thing in mind. He doesn't want the business anymore or the company. You have what he wants..... Cash ! If you do bargin with him keep that in mind.
03-08-2001, 12:32 PM
good point atlantic lawn,,, rodney go through his books and make sure everything is set up good, and try and see if you do buy the business off him if the customers will stay. unless they are under contract. you wouldn't want to lose customers from him if there not under contract. also, make sure you include all of the survices that he includes if not your gunna have to be trained in what you don't know.just trying to help good luck .
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