Buying another companys accounts

[scotty2]

I was let know that a friend of a friend is selling his accounts and equipment. I've already talked to the individual about his company and what he wants. All I ask is if this is a good idea or any one else done this before. From what I know the person got transfered to another area and that is why he is selling all.

[chriscraft]

its a good idea to see accts recievable form them 1st to check pricing, see if they paid on time, moved . died. etc. it is a good idea however. around here they usually run about 4 weeks worth of price for example a $25 cut would sell for $100.00

[scotty2]

I'm going to look at his books tomorrow then I should have a better idea what to price him at.

[scotty2]

Anything else would me out alot Thankls

[oslo]

I'm not a big fan of buying accounts. Spend the money on equipment and advertising, the customers will come.

[Freddy_Kruger]

If you buy Bob's Lawn Care they might wonder where bob is. I'd rather spend money advertising for new customers and buying new equipment.

[CC Lawncare]

I agree. Spend the money on advertising and you will be way ahead of the game. Buying somebodys accounts is a joke in my book.

[befnme]

I agree. Spend the money on advertising and you will be way ahead of the game. Buying somebodys accounts is a joke in my book.

heck not only that when he stops servicing them they will come looking to you for service and you can set your own price instead of taking his old prices .

[Drew Gemma]

through the years buyinh the right accounts is worth it buy the ones that fit into your scheme of things. I have bought roughly 50 accounts and I only lost 3 and cut 4. Plus when you buy accounts set it up as a pay to play you only pay on the ones that switch to you that way you don't pay for any dead beats or dropped accounts.

[PMLAWN]

Hint!--"From what I know the person got transfered to another area and that is why he is selling all."

That is all you need to know, This guy has a full time job that is moving him which means that he was a part timer LCO with a mindset of doing this for a little extra cash. I am sure his books don't even start to cover true overhead. My bet is this does not include trucks or computers or storage areas. These are things that he does not consider part of the company and there never priced the work to cover things like that.
I may be off base here but I bet 100 to 1 that I am not.
I say NO, not a good idea.

[Shawns Lawns]

For me personally i don't think i would buy another's accounts. The future holds no guarantee.:waving:

[scotty2]

I've looked at every thing and I'm going to take his equipment and some accounts -the truck. I will let you know in a few week how this turn out.

[scotty2]

PMLAWN
Yes he is a part time company and so am I trying to go full time. My brother and I do this together to get it done. We both have full time jobs, My self at night and my brother during the day. And yes I do understand the books part of it because I've been doing snowplowing for the past 10 years.