PDA

View Full Version : Say you knew what your competitor was charging....


johnsonslawnmanagement
09-17-2009, 10:02 PM
I have been in negotiation with another company about buying him out. He's been trying to butter me up for about two months now. He gets me a copy of his income for the year off his quickbooks and he made a boo boo. Printed off a detailed report, not a summary! It breaks down each account (monthly payment, annual cost, extra work, etc.) Long story short, he sold to another company last week (my main competitor). This guy has been a real pain because I have been doing all the previous owners weed control for years, new guy says he will use a friend of his cause he is cheaper. Didn't even ask me to refigure my price.
My question is, I don't want to be a cut throat, but I can do the work cheaper than him. Would you go after the accounts? I already know the accounts and already know the property managers from doing the weed control. It's just a question of ethics for me cause I hate a cut throat.
Posted via Mobile Device

Greenboy24
09-17-2009, 10:19 PM
I would advertise as normal, covering the areas that he covered and you will probablt get a few calls because of the fact that their previous company is under new management and they already have a relationship with you...I would not go out of my way to specifically get those accounts though, but I may up the advertising in the area

kj330
09-18-2009, 01:49 PM
Johnsons lawn... I would think that both of you as business owners wouldnt of negotiated anything, without you (as the potential buyer) first signing a Non Disclosure/ confidentiality Agreement Contract. If you did not than he is an idiot and shouldnt be in business. So go after the accounts....If you did sign , than i would steer clear of the accounts because a smart business owner would of had you sign the above docs.(and in them, it states thay you cant come after these accounts if a deal falls thru,and they are sold to someone else for usually 5 years.) You could get in deep $hi+

Greenboy24
09-18-2009, 03:02 PM
Non-compete clauses very rarely stand in court...the reason is that someone cant tell someone they can't work. They can't affect someones ability to support themselves...

Occasionally they will stand but it is rare

ALC-GregH
09-18-2009, 03:52 PM
As stated in quite a few other threads, it's a dog eat dog world out there. Jump on them without hesitation. From the quick read, it sounds like he sold out from under you without letting you know even though you had disgusted it with him prior. If he DID, jump on them and let the customer know that you know the properties very well and would like to continue servicing them and give them your price. Just don't say anything negative about the other guy, word will get around quick if you do. Be business oriented with your approach. Are you done yet?

STIHL GUY
09-18-2009, 07:41 PM
i would advertise the area

topsites
09-18-2009, 07:48 PM
Yeah I really hate being a violent person but say what if I come around and sneak up on you quietly so that you'll never
see it coming and then out of the blue just smack your ass upside the head good and hard, is that all right with you?
For the sake of argument, we can just assume it's because I think you're being a pita.

So then...
Considering the above, would you say it is relatively safe for me to assume that if I did that,
you might get even with me later, with some good old fashioned payback?
Not saying you would, but do you think I could assume as much?

By now I'm guessing you might gather that I probably wouldn't mess with those accounts, lol.

Shane100
09-19-2009, 01:14 AM
Here is the way I see it. Every new customer/account I add was someone elses before they chose me. In this case they are/were your customer/accounts. Now they may continue to use you or they can move on. Only thing is you now have the upper hand on the competition. You said yourself the other guy is cuting you out. Sounds like he is the "Cut Throat" to me. I personally would not let these customers go because of some deal between 2 other companies. Sure it sucks for the guy who paid someone else for part of your paycheck but no way I would let him into my wallet without a fight.

unkownfl
09-19-2009, 02:01 AM
sell the list to him in lieu of signing a non compete.

LushGreenLawn
09-19-2009, 06:54 AM
There are a few friends that I have that I will not go after their accounts. Other than that, business is business.

Do you think comcast would not have salesman contacting direct TV's customers if they got ahold of a list of names and numbers?

kj330
09-19-2009, 10:03 AM
Greenboy, Actually that is not correct. Before the accounts are purchaced and you are looking at all nessacary paperwork (recievables, bank accounts, customer list and personal info, yard size,on time pays billing cycle and prices), the seller would be 100% covered in a NON DISCLOSURE CONTRACT. it simply states that (the buyers company can in no way aproach the accounts for usually 5 yrs). After you work the deal out and get a contract signed for the purchace of these accounts, You would then both sign a NON COMPETE CONTRACT..
And yes they do work i have had them work before. I was payed by another company who sold out from under me the sum of 10k whick was on the agreement he signed.
And neither of these contracts prevent anyone from working. A judge will tell you there is plenty of work and piss off.

C-Level Lawns
09-19-2009, 10:29 AM
first off did you sign a non disclosure agreement?
If you did then run the paperwork thru the shredder and advertise the area.
If you didn't then use the paperwork to direct mail each customer. If he didn't get you to sign a non disclosure agreement then he's not that good a businessman. Ethically if you did you shouldn't be even be floating the question out here.

Greenboy24
09-19-2009, 02:11 PM
Greenboy, Actually that is not correct. Before the accounts are purchaced and you are looking at all nessacary paperwork (recievables, bank accounts, customer list and personal info, yard size,on time pays billing cycle and prices), the seller would be 100% covered in a NON DISCLOSURE CONTRACT. it simply states that (the buyers company can in no way aproach the accounts for usually 5 yrs). After you work the deal out and get a contract signed for the purchace of these accounts, You would then both sign a NON COMPETE CONTRACT..
And yes they do work i have had them work before. I was payed by another company who sold out from under me the sum of 10k whick was on the agreement he signed.
And neither of these contracts prevent anyone from working. A judge will tell you there is plenty of work and piss off.

I didn't say they never worked. I said it is rare. I stand behind that. If you know the laws then you know that a non-compete contract is weak. People are allowed the right to earn a living, no judge will tell someone they can't work.

Non-disclosure is much different than a non-compete. A non disclosure has much more standing in a court of law.

Now if I personally signed a non-compete clause I would definately stand firm to my word because I believe that if you agree to do something then you damn well better do it.

Legally though a non compete is weak.

deckman8887
09-19-2009, 05:55 PM
Non-competes dont stand up in Florida,it is considered a right to work state.I was in a similar situation except the customer base [70%] approached me while I was still working
for this company as a manager,owner of the company was going to sell it to me and sold it to someone else,these knuckleheads did not have the proper insurance or common sense to run a business,so I continued to advertise in the area pretty heavily.Long story short,I added 70% of their customer base to my accounts.Maybe it was a dirty thing to do but I have no regrets,some people dont like change,they dealt with me & they want it to stay that way

johnsonslawnmanagement
09-19-2009, 09:27 PM
No non-compete was ever brought up.
He just handed over the list for me to review. I am definately going after the accounts. The new guy tried getting an account from me this week, so he drew first blood.
Posted via Mobile Device

deckman8887
09-19-2009, 10:04 PM
I dont blame you at all,an eye for an eye.Good luck dude