Accounts value

[TJ1]

I'm just a little confused when you determine the value of accounts that are for sale the general rule of thumb is your yearly gross generated by these accounts multiplied times three Is this correct?
Thanks for any reply.

[CLM1103]

I wish!

[KDJ]

Originally posted by TJ1
I'm just a little confused when you determine the value of accounts that are for sale the general rule of thumb is your yearly gross generated by these accounts multiplied times three Is this correct?
Thanks for any reply.


hehehehe!!!

[Dennis E.]

My son,you have much to learn!!:D ;)

[nu83]

yea its not even close to that, it varies alot by market conditions. I would probably be willing to pay 1/2 year earnings if they were on contract. Also, if I were buying accounts I would work it so I would only buy the accounts that stayed.

[wolfpacklawn]

The gross of an account is meaningless. What is the net of an account. That shows its value. I wouldn't pay 1 cent for an account thats gross is $10,000 a year if it costs $9,000 to do the work

[P&J Lawncare]

In this buisiness accounts are almost worthless in value due to the fact that they are not legally transferable from one company to another (a contract is broken once a third party is involved unless all three parties agree on it and then they must have a new contract drawn up). Most companies wont pay upfront for a account but they will pay as they mow the account (usually 2-4 cuts worth) so they can determine if the account is going to stay with them or leave (find another companie).

Just in case someone wants to buy my accounts at three times the gross they are for sale, just bring me a check for $750,000 and their yours.

[HOMER]

Funny about transferring accounts...........how come the cell phone companies can do it so often. Cellular one just sold here to Unicell, wouldn't that make my contract with Cell One void? I should be abe to walk in and turn my phone in.........where's the difference I ask?:confused:

I'd sell mine for 3x their amount today and give you one mower to cut them with.

Come on down.

[sheppard]

The going figure here is 10% of the annulaized premium. E.G. If an account yeilds $1000.00 a year, the 'slae' price of the account is typically $100.00 bucks or rouphly 3 months of value
Cordia;;y,
Sheppard

[LAWNS AND MOWER]

Originally posted by sheppard
The going figure here is 10% of the annulaized premium. E.G. If an account yeilds $1000.00 a year, the 'slae' price of the account is typically $100.00 bucks or rouphly 3 months of value
Cordia;;y,
Sheppard

I'm confused. By your math, Tallahassee must have 30 months in a year!!!

LAWNS AND MOWER

[smburgess]

The going price is what you or someone else will pay. There is no "formula" or percentage to go by. After buying a couple of businesses, the accounts themselves are almost worthless in the dealing. The vaule of the equipment is usually where the dealing is done, no one commits to the accounts because even if they are all under "contract" doesn't mean you'll have them six months from now.
I would never "buy" accounts from someone, but I will buy the equipment with the accounts.

[LAWNS AND MOWER]

I sold 1/2 of my accounts to my employee and it came out to be price/per cut x 8. Worked out great for both of us. I became solo and got to keep all the cupcake accounts. My employee knew all of the customers so it was a smooth transition.

LAWNS AND MOWER

[strickdad]

the true value of anything, is how bad one wants to sell and how bad one wants to buy....