Register free!
Search
 
     

The Green Industry's Resource Center


Click for Weather
Reply
 
Thread Tools Display Modes
  #1  
Old 09-19-2010, 10:12 AM
sixpixels sixpixels is offline
LawnSite Member
 
Join Date: Jul 2010
Location: NJ
Posts: 29
Buying cusotmers- please help!

Hey Guys,
So i came accross an oppurtunity to buy equipment and customers from a guy who's lokoing to get out of the buisness. I already have a landscaping co and figure this would be a great add on of customers. I need some feedback/aadvice on the value or what i should pay for the customers.
here are the details-
-40 grass cutting accounts- weekly and bi weekly. All properties are within a 10 mile radius
-The guy im buying them from has only been in business for 2 yrs..so his oldest customer is 2 yrs if that.
-The guy is lokoing to get 8-9K for the customers only which to me is ridiculous being his agreement/contracts with these customers are as of right now for this season only...and nothing stating any type of penalty if they decide to cancel. PLUS how do you put a high price on somethign you dont physically own?

Ive sene past post about paying him 3-4 weeks services per lawn, or 32 weeks of service or 5-10% of the annual income BUT again...there not even signed on for next season.
Im open to any and all advice...
Reply With Quote
  #2  
Old 09-19-2010, 09:40 PM
Columbia Care Columbia Care is offline
LawnSite Member
 
Join Date: Dec 2008
Location: Middle Tennessee
Posts: 158
I would tell the guy you would be willing to pay him for 2 months revenue from his customers. The clock would not start until next years cutting season. This way you can see if the customer will allow you to service their property. If they don't, you would not pay the guy for the lead.
__________________
1994 Ford 4 Door Diesel PU (1 Ton)
6.5 x 12 Utility Trailer with Tool Racks
60" Exmark w/ 27 HP Kawasaki
44" Toro Proline WB / 15 HP Kawasaki
21" Sears Push Mower
Echo Trimmers
Echo Backpack Blowers
Solo Sprayers
Reply With Quote
  #3  
Old 09-19-2010, 10:01 PM
seabee24 seabee24 is offline
LawnSite Senior Member
 
Join Date: Mar 2009
Posts: 619
Depends on a lot more, what's the estimated profitability? How big are these accounts, what's the revenue?

Odds are he's not going to drop his price much unless he gets desperate, and let's face it, for you to pick up 40 new accounts could take more than a full year. So if these accou ts brought in 60,000 for the year, then paying 10-20,000 wouldn't be out of the question. But no sale is going to be 100% perfect or 100% gaurrentee. That's just the risk you take. I would be more likely to pay more but have him offer a gaurrentee and possibly his help for next spring for signing them and managing them for a month
Posted via Mobile Device
Reply With Quote
  #4  
Old 09-20-2010, 02:25 PM
sixpixels sixpixels is offline
LawnSite Member
 
Join Date: Jul 2010
Location: NJ
Posts: 29
Thx for the help.
This guy selling the properties has 39 total and they bring in about 3k per month.Most of them are bi weekly. The guy wants like 9k for them and i told him he was crazy. I offered him $3500 max...

waiting on his reply
Reply With Quote
  #5  
Old 09-20-2010, 02:41 PM
jdutcher003 jdutcher003 is offline
LawnSite Member
 
Join Date: Sep 2008
Location: webster ny
Posts: 178
i purchased some lawns from a guy who was going out of business not to long ago. the amount i paid was equal to about 4 weeks of mowings for those customers.
__________________
Reply With Quote
  #6  
Old 09-20-2010, 05:08 PM
AA+ landscaping's Avatar
AA+ landscaping AA+ landscaping is offline
LawnSite Member
 
Join Date: Mar 2009
Location: Eastern Pennsylvania
Posts: 221
Quote:
Originally Posted by sixpixels View Post
Thx for the help.
This guy selling the properties has 39 total and they bring in about 3k per month.Most of them are bi weekly. The guy wants like 9k for them and i told him he was crazy. I offered him $3500 max...

waiting on his reply
If you are interest I got 35 new accounts in the spring for half of that. It was very easy just took a little bit time. You are not in my town so it will not effect me. I would like to see if it would work in a different area.
__________________

96' Dodge Ram 2500
Little Wonder Blower 6HP
Little Wonder Vac 8.5HP
1 Echo Trimmers 210i

Reply With Quote
  #7  
Old 09-20-2010, 05:20 PM
seabee24 seabee24 is offline
LawnSite Senior Member
 
Join Date: Mar 2009
Posts: 619
[QUOTE=AA+ landscaping;3727181]If you are interest I got 35 new accounts in the spring for half of that. It was very easy just took a little bit time. You are not in my town so it will not effect me. I would like to see if it would work in a different area.[/QUOTE

how so?
Reply With Quote
  #8  
Old 09-20-2010, 06:19 PM
AA+ landscaping's Avatar
AA+ landscaping AA+ landscaping is offline
LawnSite Member
 
Join Date: Mar 2009
Location: Eastern Pennsylvania
Posts: 221
[QUOTE=seabee24;3727193]
Quote:
Originally Posted by AA+ landscaping View Post
If you are interest I got 35 new accounts in the spring for half of that. It was very easy just took a little bit time. You are not in my town so it will not effect me. I would like to see if it would work in a different area.[/QUOTE

how so?
Its all about marketing. Gave me a call I will tell you how to get started. 6105096966
__________________

96' Dodge Ram 2500
Little Wonder Blower 6HP
Little Wonder Vac 8.5HP
1 Echo Trimmers 210i

Reply With Quote
  #9  
Old 09-20-2010, 10:34 PM
lawn's Avatar
lawn lawn is offline
LawnSite Senior Member
 
Join Date: Aug 2003
Location: at a yard working!
Posts: 344
[QUOTE=AA+ landscaping;3727239]
Quote:
Originally Posted by seabee24 View Post

Its all about marketing. Gave me a call I will tell you how to get started. 6105096966
AA+landscaping: I am selling my business too, can you email me pls?

Thanks
Reply With Quote
  #10  
Old 09-20-2010, 02:39 PM
Marcos Marcos is offline
LawnSite Gold Member
 
Join Date: Aug 2007
Location: Cincinnati OH
Posts: 3,756
Quote:
Originally Posted by sixpixels View Post
Hey Guys,
Im open to any and all advice...
Learn how to spell, or use the yellow 'spell check' button below.
Doing anything otherwise makes you look quite unprofessional, especially while seeking advice.
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump





Powered by vBulletin® Version 3.8.6
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Copyright ©1998 - 2012, LawnSite.comô - Moose River Media
All times are GMT -4. The time now is 10:03 AM.

Page generated in 0.11544 seconds with 7 queries