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Old 01-20-2014, 07:12 PM
Chamber143 Chamber143 is offline
LawnSite Member
Join Date: Jan 2014
Location: Hickory nc
Posts: 91
Take it from me, experienced this same thing because I was young and dumb and thought the world was sunshine and lollipops. Not sure how his contracts are worded but in this business someone can drop you because they want to. We purchased a company in 2000, took 60 accounts with revenue being about 100000. Within 2 weeks we lost about 25% of them. We went to them and asked why and were told that they were thinking about going another route for years but felt loyal to him because they had been with him for years and felt like this was the perfect time to explore options. After the second year we retained only about 20% of the accounts. After 14 years we have kept one account. Albeit it is a 50000 a year job. Others take on this are spot on. Around here the going rate of buying accounts in 25%. Trust me when I say that the same money spent on advertising would have netting far more than what we gained. Plus equipment is about 30% giving condition. I would tell him I will give you a percent of all the profit from these jobs up to a given amount, covering your ass from what I promise will be a mass exodus of customers. Customers want to pick who they have working for them, not told hey this bought my company and will be servicing you. You do what you like but listen to others on here who are far more knowledgeable about these issues. Good luck which ever route you take.
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