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hortboy
01-03-2005, 11:29 AM
I have read numerous posts over the years on buying customer lists or entire businesses and I must voice my opinion. I hear people say why buy when you can get customers for free. and this statement gets my blood boiling. I took all my advertising costs, average time spent running a lead (hourly rate I strive for), fuel/mileage for the trip and the percentage of jobs i get on an average. This figured this to cost me approx $$225.00 per customer I sign. Keep in mind this is all averages but how can someone say customers are free. I mean really guys by the time your listed in the yellow pages, signage for truck, time you could be working, these customers cost you money to get them. And to be perfectly honest if you can buy a customer list or business that averages out to $$100.00 per customer and it saves you having to sell yourself at the door and trip over there why not buy a business. This is just my opinion and I know my numbers are the average but look at your individual situation before you make statements that are often not gospel truth.

Good Luck to everybody in 2005

packerbacker
01-03-2005, 11:36 AM
$225.00?!?!?!??!?! Why are you even in business then????

If you can honestly say it costs you $225.00 to print a flyer, put it on a door , recieve a phone call and then go give an estimate ill be SURPRISED.

And if it makes your blood boil that much then why do you read it or repsond to it?

Gilla Gorilla
01-03-2005, 11:37 AM
That is a great way up putting it so some people can understand it.

rodfather
01-03-2005, 12:25 PM
First of all, there is no such thing as a free customer...even a referral isn't really free.

I've been on LS for a number of years now and I can tell you the reason opinions here vary so greatly in regards to "business issues" is because there are 2 VERY DIFFERENT groups of people who respond for the most part...I'll try to explain.

Group #1 is comprised of for the most part individuals who operate a LCO part time and work full time at another job. Lawn care to them is a supplemental income. They either do it for fun or exercise or extra money or whatever. They have little or no overhead and primarily work solo. Since their monthly expense to operate a LCO is lower than a full timer, they can charge less (no question about it). They were here before, they are here now, and they probably will always be around...so be it.

Group #2 includes guys who run a LCO full time (myself included) and see their business as their main source of income (whether or not they have a spouse and their spouse brings in household income) as well. They have overhead, maybe employees, undoubtably more investment in terms or equipment, etc., and are in it for what I call "the long haul". Operating a LCO is their life and financial means of livlihood.

It doesn't really matter whether you are presently in Group #1 or Group #2 when it comes to how a lawn should be mowed properly, why trimming is needed, knowing what equipment you need to take with you each day, etc. Day-to-day issues like those are a "no-brainer". But, business issues are not and shouldn't ever be considered a "no-brainer". The fact of the matter is the people in Group #2 have different business issues than those who compromise #1 (and NO, I am NOT saying those folks in #1 don't have business issues)....only different. How different? Their's are at a lower level is all.

My point is when business issues/topics/ideas are discussed here, people (those in Group #2) who respond will do so quite vocally at times (I know I have) in the past. I myself for one don't want to hear or will ever believe you can get customers for free, that this is an easy business that can run itself in no time, we're bottom feeders, etc.. If you believe that, I suggest you never leave your day job and try to become a LCO full time. You will fail. Period. And you will fail miserably I assure you.

Finally, let's all try to help one another in 05 by being more open and receptive to other's opinion no matter which group you find yourself in...

olderthandirt
01-03-2005, 12:40 PM
Excellent Post Rod and right on the money !!!!!!!!!!!!
But why do the people that fit in group #1 insist on trying to prove to the people in group #2, that our ways are wrong? It happens on most threads started that have any informative value. And I'm not saying that group # 2 is always right but since it is a full time occupation they would have many more hrs invested in it and that usually leads to more informative
responses

Mac

rodfather
01-03-2005, 12:47 PM
But why do the people that fit in group #1 insist on trying to prove to the people in group #2, that our ways are wrong?
Mac

Simple. They haven't failed...yet

PaulJ
01-03-2005, 01:20 PM
HOrtboy

One solution is to put packer on your ignor list. I just did.

Great post rod and mac.

I'm not sure wich group I am in. I'd like to hbe considered in group 2 but some in that group might not see it that way.

Lawncare is my carear, but my wife makes over twice as much as I do as a veternarian, and I usually have to find part time work in the winter.
But I am in this for the long haul, I just plan on staying small enough to keep control of things. And I am still learnig form lawnsite members like you.

Not the ones who can only see there way or the wrong way.

rodfather
01-03-2005, 02:22 PM
I'm not sure wich group I am in. I'd like to hbe considered in group 2 but some in that group might not see it that way.

Doesn't really matter Paul...believe me.

What DOES matter is reading replies here from part time people telling full time people they're smarter or know more or try and make you believe their's is the only "right" way and your's will never work...hearing crapola like that goes up my a** like a wire brush I tell ya.

Second, I'm not afraid to say I have probably forgotten more than most part timers know. Why? Simply cause I have personally experienced more trial and error, everyday issues and situations in the previous 11 years. That's all, nothing more.

I don't mind sharing my business experience with anyone here on LS (and have done so freely) in the past 4 years or so. BUT, when I get a "in your face" attitude from some propellor head who doesn't know s*it from shinola, I have no use for them. Period.

packerbacker
01-03-2005, 02:43 PM
Cmon guys! Do any of you actually believe that it costs him $250.00 to gain each customer?

Im sorry but im not buying that. thats the most ridiculous statement that i have ever read here.

Rod, im a solo operator but my company is the primary source of income for my family. Ive been in this field for over 10 years and in business for myself for 5. I know what it takes to be an LCO and its hard work. People like us have to go out and hustle business every chance we get. Its what keeps us going and makes LCOs a success.

The funniest thing i find about all of this is the fact that nobody here has answered 1 simple question. Everyone has rushed to insult me and TRY to prove me wrong but nobody has answered the question of what happens when the list the guy sells you leaves you high and dry?

If nobody has an answer just say so but dont sit here and call names just because you disagree with someone. Ive said it over and over and over just because 2 people do things differently doesnt make 1 wrong and 1 right.

rodfather
01-03-2005, 02:52 PM
Cmon guys! Do any of you actually believe that it costs him $250.00 to gain each customer?

Im sorry but im not buying that. thats the most ridiculous statement that i have ever read here.

Rod, im a solo operator but my company is the primary source of income for my family. Ive been in this field for over 10 years and in business for myself for 5. I know what it takes to be an LCO and its hard work. People like us have to go out and hustle business every chance we get. Its what keeps us going and makes LCOs a success.

The funniest thing i find about all of this is the fact that nobody here has answered 1 simple question. Everyone has rushed to insult me and TRY to prove me wrong but nobody has answered the question of what happens when the list the guy sells you leaves you high and dry?

If nobody has an answer just say so but dont sit here and call names just because you disagree with someone. Ive said it over and over and over just because 2 people do things differently doesnt make 1 wrong and 1 right.

Who cares what it costs him John? His costs are his, yours are yours and mine are mine. Point is, they're gonna be all different.

Second, what do you mean (and yes, you can spell this out for me word for word) "when the list he sells you leaves you high and dry"? I for one do not understand that point (excuse my ignorance) here at all.

packerbacker
01-03-2005, 02:58 PM
Who cares what it costs him John? His costs are his, yours are yours and mine are mine. Point is, they're gonna be all different.

Second, what do you mean (and yes, you can spell this out for me word for word) "when the list he sells you leaves you high and dry"? I for one do not understand that point (excuse my ignorance) here at all.






My whole point of not being in favor of buying customers is what happens if they dump you for someone else after a month? Its a total waste of money. There are to many things going against purchasing a customer list then there is going with it.

rodfather
01-03-2005, 03:15 PM
My whole point of not being in favor of buying customers is what happens if they dump you for someone else after a month? Its a total waste of money. There are to many things going against purchasing a customer list then there is going with it.

If I get dumped (as I eluded earlier on another reply), it most likely is something that I did and will just have to pay the price. But let me add something that really wasn't touched upon with regard to buying names.

You come to me and say, "Hey Rod, I'm getting out of the biz. You interested in taking on any new accounts? I say probably". Next thing that happens is I say I want a copy of the list with the names, addresses, and how much your getting for each cut. I go about my merry way and check them out.

I come back and say, "Hey John, tell ya what. I'll take all of them ". Then we work out a price that is agreeable to both of us. Next thing to do is figure out if you want the right away or over some time period. All done, right? Nope...not yet.

What you're going to do is go around with me and introduce me to all these customers of yours and let them know what's going on. They don't want any surprises and I sure as hell don't want someone coming out with a shotgun the first time I am there to mow the lawn and you ain't. Now if I lose any of these accounts after being introduced and the transition has gone smoothly, I'm gonna chalk it up to "that's business".

One last thing. I'm sure as hell gonna ask each and every new customer I am acquiring when you are introducing me to them if they have any problem with us servicing their account and not you any longer.

packerbacker
01-03-2005, 03:21 PM
If I get dumped (as I eluded earlier on another reply), it most likely is something that I did and will just have to pay the price. But let me add something that really wasn't touched upon with regard to buying names.

You come to me and say, "Hey Rod, I'm getting out of the biz. You interested in taking on any new accounts? I say probably". Next thing that happens is I say I want a copy of the list with the names, addresses, and how much your getting for each cut. I go about my merry way and check them out.

I come back and say, "Hey John, tell ya what. I'll take all of them ". Then we work out a price that is agreeable to both of us. Next thing to do is figure out if you want the right away or over some time period. All done, right? Nope...not yet.

What you're going to do is go around with me and introduce me to all these customers of yours and let them know what's going on. They don't want any surprises and I sure as hell don't want someone coming out with a shotgun the first time I am there to mow the lawn and you ain't. Now if I lose any of these accounts after being introduced and the transition has gone smoothly, I'm gonna chalk it up to "that's business".

One last thing. I'm sure as hell gonna ask each and every new customer I am acquiring when you are introducing me to them if they have any problem with us servicing their account and not you any longer.






As well you should do all those things but the fact is you have absolutely no guarantee that they will stick to their word and keep you on and it may not have anything to do with the great work you do. It could be as simple as tightning the budget and finding someone cheaper to do the work.

Commercials are different. If you can get them into a contract for a full season then it might be a good idea if you can still make a decent profit AFTER the money is paid for the list.

rodfather
01-03-2005, 03:30 PM
As well you should do all those things but the fact is you have absolutely no guarantee that they will stick to their word and keep you on and it may not have anything to do with the great work you do. It could be as simple as tightning the budget and finding someone cheaper to do the work.

Guarantee? Of course not.

But that's simply one of the chances you take by being in your own business. I think there is a greater chance they will keep you on vs. "86ing" ya all considerations staying the same and equal (ie, pricing, quality of your work, reliability, professionalism, doing what you say you going to do, etc.).

Sure budgets tighten and Joe Blow undercuts ya...just a fact of life IMO.

packerbacker
01-03-2005, 03:33 PM
Guarantee? Of course not.

But that's simply one of the chances you take by being in your own business. I think there is a greater chance they will keep you on vs. "86ing" ya all considerations staying the same and equal (ie, pricing, quality of your work, reliability, professionalism, doing what you say you going to do, etc.).

Sure budgets tighten and Joe Blow undercuts ya...just a fact of life IMO.






And that the whole point ive been trying to make! Why should you spend money on something that you can get for almost next to nothing. There are no guarantees at all that you will keep the customer either way but i would rather find out WITH the extra money in my pocket. Not in someone elses.

I still say that if you work good and do the right thing everything else will fall into place. The customers come with time and good work. I dont see the point of wasting money buying them.

wojo23323
01-03-2005, 03:56 PM
We bought a business this year. I probably would do it again. We got some great customers, but there were about 20% that were a PITA. They are gone now. We kept them long enough so we didn't really lose any money on them. My whole purpose of going into business was to one day sell it. Customer base included. What other reason is there to start a business??

packerbacker
01-03-2005, 03:59 PM
We bought a business this year. I probably would do it again. We got some great customers, but there were about 20% that were a PITA. They are gone now. We kept them long enough so we didn't really lose any money on them. My whole purpose of going into business was to one day sell it. Customer base included. What other reason is there to start a business??





My goal in a business is to make money not sell it. My goal was to work for myself and not some clown who was underpaying me for good work. My goal was to set my own hours.

cutnedge
01-03-2005, 03:59 PM
Packerbacker,

How in the world can a list leave me high and dry? Surely I would introduce myself to the people on the list I am buying and find out exactly what it is they want from me as a LCO beforehand. Do they just want a cut and go? Do they want fullservice? Do they want services that I can't provide? I assure you, all bases would be covered before I bought into the list. If the services were agreed upon,and If my co. could provide all of the services they requested, why wouldn't I buy? Seems to me buying them would prove to be more reliable than any flier could be. And what I like most: if for some reason the list goes astray, I have no-one to blame but myself.

packerbacker
01-03-2005, 04:05 PM
Packerbacker,

How in the world can a list leave me high and dry? Surely I would introduce myself to the people on the list I am buying and find out exactly what it is they want from me as a LCO beforehand. Do they just want a cut and go? Do they want fullservice? Do they want services that I can't provide? I assure you, all bases would be covered before I bought into the list. If the services were agreed upon,and If my co. could provide all of the services they requested, why wouldn't I buy? Seems to me buying them would prove to be more reliable than any flier could be. And what I like most: if for some reason the list goes astray, I have no-one to blame but myself.







As i said before there are ALWAYS unforseen circumstances. The people could move, they could find someone cheaper, they could have money problems and not be able to afford a company anymore and no matter what bases you have covered there is always something that wasnt planned for.

HOOLIE
01-03-2005, 04:05 PM
I haven't bought any customer lists yet, but I am considering it should the opportunity arise. It's a good way to significantly increase your customer base immediately, rather than wait for referrals to trickle in. How long would it take the average solo guy to pick up 50 referral customers? And so what if you're paying another LCO? It's business.

Plus, you're getting customers that already use a service. You don't have to worry about wasting time doing estimates for folks who are price-shopping.

rodfather
01-03-2005, 04:27 PM
Something I forgot to mention previously here is there is definitely a certain amount of pre-qualification buying accounts.

cutnedge
01-03-2005, 04:36 PM
As i said before there are ALWAYS unforseen circumstances. The people could move, they could find someone cheaper, they could have money problems and not be able to afford a company anymore and no matter what bases you have covered there is always something that wasnt planned for.
I'll tell you what, provide me with a service based co. that retains 100% customers with no risk due to circumstances outside of their control and I'll be in that long line of entrepreneurs waiting to get in.

wojo23323
01-03-2005, 04:50 PM
My goal in a business is to make money not sell it. My goal was to work for myself and not some clown who was underpaying me for good work. My goal was to set my own hours.

Everyone has their own goals. What would happen if you couldn't do this line of work anymore? Would you just stop and give your customers away?

packerbacker
01-03-2005, 05:05 PM
I'll tell you what, provide me with a service based co. that retains 100% customers with no risk due to circumstances outside of their control and I'll be in that long line of entrepreneurs waiting to get in.





You missed the point completely. And im not going to type it out again. Go back and read my posts.

packerbacker
01-03-2005, 05:06 PM
Everyone has their own goals. What would happen if you couldn't do this line of work anymore? Would you just stop and give your customers away?





Hell no. I would try to sell them because i know there are people out there that would pay for them. That doesnt mean i will though.

rodfather
01-03-2005, 05:14 PM
Hell no. I would try to sell them because i know there are people out there that would pay for them. That doesnt mean i will though.

Well if that isn't a double standard, I don't know one that is. Period

packerbacker
01-03-2005, 05:32 PM
Well if that isn't a double standard, I don't know one that is. Period





Im also in favor of buying things on sale at stores but i wont give my customers 50% off.

Is that a double standard? Should i start buying the most expensive item now instead of a sale item?

rodfather
01-03-2005, 05:36 PM
Im also in favor of buying things on sale at stores but i wont give my customers 50% off.

Is that a double standard? Should i start buying the most expensive item now instead of a sale item?

You missed the point completely.

It's perfectly ok for someone to purchase your client base if your business goes south for what ever reason, but you also think it's ludicrous that anyone in their right mind would ever purchase accounts cause they might be left "high and dry".

Now I am really confused...can't wait to hear this reply.

packerbacker
01-03-2005, 05:39 PM
You missed the point completely.

It's perfectly ok for someone to purchase your client base if your business goes south for what ever reason, but you also think it's ludicrous that anyone in their right mind would ever purchase accounts cause they might be left "high and dry".

Now I am really confused...can't wait to hear this reply.




Rod just because i dont believe in wasting my money buying clients doesnt mean i cant help someone out and sell them mine. Its not a double standard at all. If i can make a buck why shouldnt I?

PMLAWN
01-03-2005, 05:46 PM
Packer- I believe that the point was that even if you do not buy a list you pay for the customers. And as he knows the numbers I believe he tracks his leads and knows where they come from. I would think that many people don't do that and if they did they would work for the best ad's or flyers and not use the losers any more. It falls under the same page as saying that they can charge less because they have payed for equipment.
Point was made about part time compared to full, I think that it has a lot more to do with those running a true business compared to those that just have a job cutting grass solo. When people say that their equipment is payed for or they make 85% profit or even that customers are free I think they fall more into the job side. That is not a bad thing but just dont tell others that they are wrong and only their way is right.
As far as the list that would have to depend on how much each name costs and than a check of that list.

rodfather
01-03-2005, 05:48 PM
[QUOTE=packerbacker]doesnt mean i cant help someone out and sell them mine.[ /QUOTE]

Who is "helping" who John? The scenario was "what would you do if you couldn't do this line of work anymore...would you stop and give your cusotmers away" by wojo23323

Your reply. "Hell no. I would try to sell them..."

Sorry, I see no reference in giving them away, only selling them. Or am I wrong?

packerbacker
01-03-2005, 05:50 PM
Packer- I believe that the point was that even if you do not buy a list you pay for the customers. And as he knows the numbers I believe he tracks his leads and knows where they come from. I would think that many people don't do that and if they did they would work for the best ad's or flyers and not use the losers any more. It falls under the same page as saying that they can charge less because they have payed for equipment.
Point was made about part time compared to full, I think that it has a lot more to do with those running a true business compared to those that just have a job cutting grass solo. When people say that their equipment is payed for or they make 85% profit or even that customers are free I think they fall more into the job side. That is not a bad thing but just dont tell others that they are wrong and only their way is right.
As far as the list that would have to depend on how much each name costs and than a check of that list.





I never once said they were wrong for doing what they do in fact i preach on a regular basis for these people to open up and accept that we all do things differently.

I also understand that you have to pay for advertising but my point was why pay a large amount of money when you can ride the storm out, do some advertising and wait for them to roll in?

packerbacker
01-03-2005, 05:51 PM
[QUOTE=packerbacker]doesnt mean i cant help someone out and sell them mine.[ /QUOTE]

Who is "helping" who John? The scenario was "what would you do if you couldn't do this line of work anymore...would you stop and give your cusotmers away" by wojo23323

Your reply. "Hell no. I would try to sell them..."

Sorry, I see no reference in giving them away, only selling them. Or am I wrong?




Im not understanding what your trying to say.

Lux Lawn
01-03-2005, 05:53 PM
Rod
You brought up some very good points in your posts here I agree that if I was going to BUY accounts off of somebody that I would have that person introduce me to as many of the potential customers as possible.I would have a letter typed out explaining what is going on with the transaction and also try to keep the price's the same if it is possible at least for the first year.
When meeting with them you can walk through the yard and they can explain anything that they are particular about at that time.Like you said if you BUY 50 accounts and after 2 months someone cancels then maybe the new company wasn't doing as good as the last like you stated it does happen and it's still not a waste.
I am not sure if I would ever get involved in a situation like this to start with but if it came up with the right person I might.A few years back I bought some driveways for snowplowing off a friend of mine dirt cheap because he took a full time job and it work out real nice then I did the same thing with his cousin the following year.So I guess it can work you just need to be careful.JMO

rodfather
01-03-2005, 05:57 PM
Basically what I was trying to say (sorry, I don't claim to be the Great Communicator) after all that has been said is it's ok for you to sell accounts if you had to but you would never in your life buy any. So, does that make me an idiot if I buy your acccounts?

packerbacker
01-03-2005, 06:02 PM
Basically what I was trying to say (sorry, I don't claim to be the Great Communicator) after all that has been said is it's ok for you to sell accounts if you had to but you would never in your life buy any. So, does that make me an idiot if I buy your acccounts?





No and i never said anyone was an idiot for buying them. All i said was that i wouldnt waste my money doing it because there are to many intangibles in it. You guys do what you want and so will I but i wont justify paying for people.

wojo23323
01-03-2005, 08:56 PM
Point was made about part time compared to full, I think that it has a lot more to do with those running a true business compared to those that just have a job cutting grass solo. When people say that their equipment is payed for or they make 85% profit or even that customers are free I think they fall more into the job side. That is not a bad thing but just dont tell others that they are wrong and only their way is right.
As far as the list that would have to depend on how much each name costs and than a check of that list.

This is what I was trying to say. You can grow your business quickly buying other accounts. But if you are content with having a JOB cutting grass, it probably would not interset you very much. Because if you are a solo operator you pretty much have a JOB where you are your own boss.

hortboy
01-03-2005, 11:23 PM
To justify my original post. To come up w/ that number I added up all my advertising costs for one year (ps ad in yellow pages, newspapers, signage on trucks, lawn signs etc) next i took total number of leads I ran and averaged amount of time spent for initial consult, next figured the total time for formal contract to be created, mailed or dropped off, possible follow up phone calls. Now I have the base info and your equation can be created if you calculate the number of actual costomers I picked up this year , total costs and your own time spent which is often not figured in or in my case I have a foreman run some leads after normal hours if I'm busy that is where I come up w/ $$225.00. An example of this would be, you spend $$2000.00 on advertising , you do 40 estimates, so far you've spent $50.00 per lead -not customer yet do you figure each lead takes you 2 hours to do from start to finish at a modest $35.00 an hour now your up to $120.00 per lead -still not customer yet. you factor in expenses gas-mileage, possibly payroll, Add $5.00 to the $120.00 -- up to $125.00. No let assume you were able to lock up 75% of all incoming leads which is gives you a total of $166.66 for your total expense of getting 37.5 customers. seems obvious to me now that many of you really are un aware your operating costs.

hortboy
01-03-2005, 11:29 PM
buying or selling customer lists are no cash and handshake deals. The last business I bought was the best one yet I have purchased. It was a large company and it was a 5 year deal and after the 5 years was up his remaining balloon payment was based on actual number of retained cutomers and gross billed amounts from those existing customers. This worked out well because the previous owner had an active interest in making sure his customers stayed w/ me and on a few occassions he even stepped in and met w/ problem customer w/ me to resolve issue. I did have to pay a lawyer to draw up sale contract, no compete etc but it was worth it.

biglawndog
01-04-2005, 10:08 AM
My goal in a business is to make money not sell it. My goal was to work for myself and not some clown who was underpaying me for good work. My goal was to set my own hours.


PackerB,
All you've done is create a job for yourself. What happens when you are sick. You can't work. Work doesn't get done. If you are sick for a period of time guess what,customers will find someone else to cut their grass.As a man with a famliy you have a responsibility to build a BUSINESS that can sustain itself for a period of time should something happen to you, ie injury,sickness or even death. I know, I was there. I realized this and I am building it up so if something happens to me it can continue until I am better or until it can be SOLD. And yes,it is worth something. When buying a business, safeguards can be written into the contract. If a customer bails on you before three months,the cost of that customer can be deducted from the sale.Your way is a great way to establish a loyal client base,it just takes time and time is money.
Also what may not be right for one person may be right for the next.

PS, Maybe the reason people are so hostile toward you is that you seem so arrogant and close minded. You may not be but it comes across that way. :angel:

packerbacker
01-04-2005, 10:25 AM
PackerB,
All you've done is create a job for yourself. What happens when you are sick. You can't work. Work doesn't get done. If you are sick for a period of time guess what,customers will find someone else to cut their grass.As a man with a famliy you have a responsibility to build a BUSINESS that can sustain itself for a period of time should something happen to you, ie injury,sickness or even death. I know, I was there. I realized this and I am building it up so if something happens to me it can continue until I am better or until it can be SOLD. And yes,it is worth something. When buying a business, safeguards can be written into the contract. If a customer bails on you before three months,the cost of that customer can be deducted from the sale.Your way is a great way to establish a loyal client base,it just takes time and time is money.
Also what may not be right for one person may be right for the next.

PS, Maybe the reason people are so hostile toward you is that you seem so arrogant and close minded. You may not be but it comes across that way. :angel:







Im not arrogant and closeminded and im sorry if I come off like that. I dont call names, i dont insult, i dont put people down. As a matter of fact i do just the oppisite and i usually get ridiculed for telling people to do what they want and not worry about what the standard is. Most people here expect others to do what they do and its not right.
We all do things the way we want and it might not be the same as the next guy and when it isnt the person will get attacked from all sides from the "good ole boys" here.

Cobra Jock
01-04-2005, 10:31 AM
[QUOTE=Im sorry but im not buying that. thats the most ridiculous statement that i have ever read here.

I think I've read more crap from Packer Backer than anyone else on this site, IMO! :realmad:

packerbacker
01-04-2005, 10:40 AM
[QUOTE=Im sorry but im not buying that. thats the most ridiculous statement that i have ever read here.

I think I've read more crap from Packer Backer than anyone else on this site, IMO! :realmad:




Thanks, i guess im doing my job right then!

Cobra Jock
01-04-2005, 10:45 AM
Thanks, i guess im doing my job right then!

Keep up the good work :D

biglawndog
01-04-2005, 03:27 PM
PackerBacker,
What about the first part of my statement about creating a job for yourself? Do you see my point?

packerbacker
01-04-2005, 04:40 PM
All you've done is create a job for yourself. What happens when you are sick. You can't work. Work doesn't get done. If you are sick for a period of time guess what,customers will find someone else to cut their grass.As a man with a famliy you have a responsibility to build a BUSINESS that can sustain itself for a period of time should something happen to you, ie injury,sickness or even death. I know, I was there. I realized this and I am building it up so if something happens to me it can continue until I am better or until it can be SOLD. And yes,it is worth something. When buying a business, safeguards can be written into the contract. If a customer bails on you before three months,the cost of that customer can be deducted from the sale.Your way is a great way to establish a loyal client base,it just takes time and time is money.
Also what may not be right for one person may be right for the next.




Honetly i keep working. I worked 2 months on an ankle with 2 torn ligaments. I didnt want to but i had to. Sometimes you have to suck it up and get tough.

Also i understand the pros of buying customers but its not for me and thats all i said the first time. I still think and believe that you can get a new customer for minimal work and cost by just calling or sending out some info on your company. Just my opinion.

Soupy
01-05-2005, 09:17 AM
Cmon guys! Do any of you actually believe that it costs him $250.00 to gain each customer?

Im sorry but im not buying that. thats the most ridiculous statement that i have ever read here.

Rod, im a solo operator but my company is the primary source of income for my family. Ive been in this field for over 10 years and in business for myself for 5. I know what it takes to be an LCO and its hard work. People like us have to go out and hustle business every chance we get. Its what keeps us going and makes LCOs a success.

The funniest thing i find about all of this is the fact that nobody here has answered 1 simple question. Everyone has rushed to insult me and TRY to prove me wrong but nobody has answered the question of what happens when the list the guy sells you leaves you high and dry?

If nobody has an answer just say so but dont sit here and call names just because you disagree with someone. Ive said it over and over and over just because 2 people do things differently doesnt make 1 wrong and 1 right.

In 5 years how much money have you spent on advertising and how many customers do you have now? How much time have you spent giving estimates and handing out flyers etc.?

I just read a thread you started about not being open minded and people thinking they know it all. I would say you are doing just that. You are trying to argue with everyone and saying they are stupid for buying accounts.

richard coffman
01-05-2005, 12:31 PM
If I get dumped (as I eluded earlier on another reply), it most likely is something that I did and will just have to pay the price. But let me add something that really wasn't touched upon with regard to buying names.

You come to me and say, "Hey Rod, I'm getting out of the biz. You interested in taking on any new accounts? I say probably". Next thing that happens is I say I want a copy of the list with the names, addresses, and how much your getting for each cut. I go about my merry way and check them out.

I come back and say, "Hey John, tell ya what. I'll take all of them ". Then we work out a price that is agreeable to both of us. Next thing to do is figure out if you want the right away or over some time period. All done, right? Nope...not yet.

What you're going to do is go around with me and introduce me to all these customers of yours and let them know what's going on. They don't want any surprises and I sure as hell don't want someone coming out with a shotgun the first time I am there to mow the lawn and you ain't. Now if I lose any of these accounts after being introduced and the transition has gone smoothly, I'm gonna chalk it up to "that's business".

One last thing. I'm sure as hell gonna ask each and every new customer I am acquiring when you are introducing me to them if they have any problem with us servicing their account and not you any longer.

I couldn't agree with Rod more on this, this post is a great example of how to go about doing this.

Respectfully,

Richard/Owner :D :D :D