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  #31  
Old 08-07-2014, 08:38 PM
agent walker agent walker is offline
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around here the accounts are worth approx 4-6wks of gross income. Id want to have a look at all the properties first and know his pricing on each one to make sure they are profitable and the type of clients you want.
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  #32  
Old 08-07-2014, 08:40 PM
whiffyspark whiffyspark is online now
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Quote:
Originally Posted by hackitdown View Post
You need to compare his asking price to the cost of acquiring new customers by advertising.

For example, if you spend $1,500 in April or May, and acquire at least 10 new mowing customers, they cost $150 each. If you spent the same in August, you might get 5 new customers. So that would be about $300 each. Your numbers will be different, but you get the idea.

If I were determined to sign 75 new mowing customers, I would spend $20K on advertising, and reserve the $55K for new mowers, trucks, handhelds, and payroll!

The customers you get through sales and marketing would be "yours", they would be agreeable to your terms, and most importantly, they would choose you, so they would be more likely to be long term customers.
If it costs you 20k to land 75 customers you have other issues going on. With a 20k budget we could probably land 3x times that
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  #33  
Old 08-15-2014, 09:23 AM
205mx 205mx is offline
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We've purchased a few client lists. Works fine. Keep customer acquisition below $116/client and you do well.

This means you won't always make a deal with a seller.
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  #34  
Old 08-15-2014, 06:50 PM
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TPendagast TPendagast is offline
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Originally Posted by 205mx View Post
We've purchased a few client lists. Works fine. Keep customer acquisition below $116/client and you do well.

This means you won't always make a deal with a seller.
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so a company with a hundred active properties, you would pay $11,600?

All these guys trying to sell these businesses want 30, 75, 200k.

This is what Ive been saying.

Selling a landscape company isn't worth a lot of money.
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  #35  
Old 08-15-2014, 07:06 PM
205mx 205mx is offline
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Originally Posted by TPendagast View Post
so a company with a hundred active properties, you would pay $11,600?

All these guys trying to sell these businesses want 30, 75, 200k.

This is what Ive been saying.

Selling a landscape company isn't worth a lot of money.
Don't lecture me TP. There's a difference in purchasing a company and purchasing a client list.
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  #36  
Old 08-15-2014, 08:35 PM
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GearMonkey GearMonkey is offline
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There's one for sale in my area for $12k includes truck and equipment and contracts, but the owner wants to own 20% and get paid a percentage of profits. Not sure if that is ideal.
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  #37  
Old 08-16-2014, 10:35 AM
dc33 dc33 is online now
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theres a guy around here trying to get 60k for a list of 90 accounts that are NOT under contract

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  #38  
Old 08-16-2014, 10:59 AM
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Pietro Pietro is offline
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In my opinion the accounts are worthless. They could drop you right after you buy him out. Even with a contract.....there is no way to guarantee client retention. Spend some money on nice full color fliers and advertise. You'll get clients no problem. He clearly wants out....and when no one buys his "company" he is going to throw in the towel.m then you can get his clients for nothing.
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  #39  
Old 08-16-2014, 11:39 AM
dc33 dc33 is online now
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Originally Posted by Pietro View Post
In my opinion the accounts are worthless. They could drop you right after you buy him out. Even with a contract.....there is no way to guarantee client retention. Spend some money on nice full color fliers and advertise. You'll get clients no problem. He clearly wants out....and when no one buys his "company" he is going to throw in the towel.m then you can get his clients for nothing.
exactly!!

in my case I said we could talk about a price IF he would agree to payments and those payments would be based on the retention rate at various points.
If I have 80% of the account in 10 weeks, you get 80% of that payment, if 50% renew at the end of the year, you get 50% of that payment amount. He didn't like that.

Me and a dozen other companies will pick up his accounts for free next year
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  #40  
Old 08-16-2014, 04:44 PM
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GearMonkey GearMonkey is offline
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Quote:
Originally Posted by dc33 View Post
exactly!!

in my case I said we could talk about a price IF he would agree to payments and those payments would be based on the retention rate at various points.
If I have 80% of the account in 10 weeks, you get 80% of that payment, if 50% renew at the end of the year, you get 50% of that payment amount. He didn't like that.

Me and a dozen other companies will pick up his accounts for free next year
On the flip side, from his point of view, what if they are good clients but you're a bad or unprofessional business man and lose some of the good clients?

Not saying you are personally, but that is a risk the seller has on his end of the spectrum.

Food 4 thought
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