View Full Version : Is it worth buying a current lawn round ?
Maxwells
02-16-2005, 03:12 AM
I have the oportunity to buy a current lawn run with 90 lawns ? is this worth it ? has anyone done this then found that the run wasent quite as good as it looked on paper ? am i better just to build my round myself ?
walker-talker
02-16-2005, 04:07 AM
It cost a lot in advertising dollars and takes time to aquire that many lawns. Some will tell you different, but locations have a lot to do with it.
How much are they asking for?
Mclaughld
02-16-2005, 04:18 AM
Before you buy them, go on the route with the current owner. You'll see if they are worth it. You'll make sure your not buying a buch of lowballed houses.
Maxwells
02-16-2005, 04:57 AM
i guess we have all heard it before this one is a break up - she owns the company and just wants to get rid of it ! the equipment is not worth much just good will for the existing round - they want as much As they can get for it - around $6,000 + (nz dollars)
GarPA
02-16-2005, 05:43 AM
can they give you a simple breakdown?.. like:
30 are at$35 per service call
25 @ $40
45 @ 45
if it were me I'd want to know how the majority of them are priced and then go look at most of them. Then I would "value" what I'd be willing to pay for the entire route.
As others mentioned above, if most of them are underpriced, you might lose allot of them if you have to raise the price to where it needs to be.If they are low-balled currently, I might have to walk away from the deal as the risk of losing many of them makes the proposition shaky at best
Maxwells
02-16-2005, 05:46 AM
Thanks it makes sence - she has just been left in the s..t by her ex and just wants to get rid - she is trying to sell as a package but i have said i only want the trailer and on going round
walker-talker
02-16-2005, 05:54 AM
That comes out to $66 for each account. It has been my expierence that I have to pay more than for accounts just in advertising cost. Like others have mentioned, if the accounts are profitable, and only then, it might be a good buy. If it was me, I would at least take a good look at this offer.
Has she mentioned what these accounts gross? I am just curious.
Maxwells
02-16-2005, 05:57 AM
its hard to say - i have worked out that each account is done on average every 3 weeks lets say @ $25 would give you $433 per account each year worst case senario - if you only held 50 of the 90 it would give you $21K be4 tax operating expences
walker-talker
02-16-2005, 06:06 AM
You locations says you are from NZ....is that New Zealand? If so, is that typical to mow grass every 3 weeks?
Also, if only 50 of the 90 would decide to stay with you....that's not good. The way I look at it, 100% should at least let you start. What I mean is that they are already paying for mowing service, why would they not go with you....if they are going to continue paying for service?
Maxwells
02-16-2005, 06:08 AM
yes new zealand - i guess it would work out 3 weekly over the year
lawnman_scott
02-16-2005, 07:17 AM
You might want to start a thread in commercial lawn care titled "question for new zealand lawn care owners" or something like that, or in the network forum. The new zealand part might catch their eye, and they might be able to help you more. There are some members from over there.
marko
02-16-2005, 09:47 AM
Maxwells. In US dollars you are looking at $4283 for 90 accounts ($47.50 each). I would take a good look at this. The only concerns are if the clients will stay with you. I would imagine you will have at least a 10% drop rate. The best bet would be for you to take the owner around, have her introduce you and tell them that you will be helping her out, taking over the business, whatever. Set up a fixed price on the number that stay with you for the transition (3 mows, 6 mows whatever). Good luck
grillonz
02-20-2005, 07:01 PM
Maxwells
In NZ a 30% drop off rate when buying a round would not be unusual. Watch for lots of little lawns that actually are uneconomic. Is the round compact or spread out. I find if I can do multiple lawns in the same area it really helps. As for price be prepared to pay for approx 8-10 cuts. (eg. If round grosses $1000/ cut then expect a price of $8-10000 not incl equipment.)
Have you looked at what advertising you could do for the same money.
Happy mowing
James
Maxwells
02-20-2005, 07:21 PM
i guess this one is unusual it is a marrige break up and she just wants to get rid of it so it will be cheaper than normall - the down side is that no one is able to show me the round apart from the part time guy they have working with them hi is just keeping it going till they sell it , what time of the year do you slow down lawn mowing ? is it worth buying this round at this time of the year
grillonz
02-20-2005, 07:34 PM
Maxwells
I suspect with this one you could be in for a steep learning curve without the previous owner to show you the round. As for the time of year it isn't the best as you are at the end of summer rather than the beginning. I'm still rushed off my feet & expect to be so till mid April. In saying that last year it was busy till the end of June. As the grass slows you may get some customers stretching out the cuts. Check with the owner because they generally do the same thing eah year.
I'm just Nth of Auckland
Where are you
Happy mowing
James
Maxwells
02-20-2005, 07:38 PM
Hi James
I am in Wellington / Coast area - yep it is a real hit and miss i have around 22 regulars i have built up over 4-6 weeks i do a lot of one of other stuff, i guess i see this as a way to boost numbers very quickly (but it could back fire ha ha ) i am going to see the owner in the next few days - what have been your best way of getting new accounts ? and hows winter do you keep busy ? Many Thanks Maxwells
grillonz
02-20-2005, 11:12 PM
Maxwells
I have an add in the local directory. Works wonders. Apart from that its all word of mouth. Doing the rougher areas helps as well. With them you can really charge well because a lot of contractors won't touch them.
Winter depends on the weather. My problem is the clay soil that holds water. When that happens the only way to cut the grass is with a weedeater.
During summer I go for it & as the saying goes make hay while the sun shines. Domestic lawns are not as bad, normally go from 2 to 3 week cuts.
Happy mowing
James
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