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View Full Version : How do you price this?


pav
03-28-2008, 06:10 AM
I am going on my second year in lawn care and I was loking into buying some accounts from another company. Is there a guide line I should follow on how much to pay for the accounts?

gardener
03-28-2008, 09:32 PM
buy contracts only. also make sure no money has already been advanced.

lawntactics
03-28-2008, 11:26 PM
I would pay no more than 1/3 of the contract price. There is no guarantee that the customers will keep you or resign for the next season. Be careful!

AWR
03-29-2008, 12:28 AM
I would pay no more than 1/3 of the contract price. There is no guarantee that the customers will keep you or resign for the next season. Be careful!

thats what i would say and also see if you can get some kind of contract that he cant advertise or work in the area of where these customers are for atleast 4 years..

Pennings Gardens
03-30-2008, 02:36 PM
I would write up a contract stating you will pay him xx % of the total bills written out and payment received from these customers after 1 season. He might be selling you the customers that don't pay or might take them away from you in a few months when he needs some beer money and starts doing some work on the side... You never know...

I would also not pay him more then 10% of the annual revenue. (if this is residential mowing: $50.- per cut X 20 cuts = 1000.- spring clean up $300.- fall clean up $ 400.- = 1700 X 10% = $170.- per customer) and so on.BUT ONLY AFTER YOU HAVE BEEN PAID!

ponyboy
03-30-2008, 08:35 PM
i have bought 3 companies in the past if you are buying the whole company then follow the the above comments pretty good but i found if a company is only selling a few accounts they usually are PITAs and would be leary good luck keep us posted

Lawnworks
03-30-2008, 09:17 PM
Try to get them for 5-10% of gross.

pav
04-01-2008, 08:11 AM
well thaks for the good advice! I found out that the total gross for the year would be $40000.00. I offered them $5000.00 for the contracts. I thought that it was fair, but the were expecting to get at least $35000.00 for them!!!! I told them good luck that no one will do the entire season for only $5000.00. They would lose all kinds of money with the rise of gas and everything else.

Lawnworks
04-01-2008, 09:25 AM
Try them back in a month... if they have to be out by a certain date... they can get pretty desperate... 5k is better than nothing.

TGK
04-05-2008, 12:04 PM
Just keep advertising spend your money on that. People will come around.