Register free!
Search
 
     

The Green Industry's Resource Center


Click for Weather
Reply
 
Thread Tools Display Modes
  #1  
Old 12-04-2007, 10:52 PM
JaysLawns JaysLawns is offline
LawnSite Member
 
Join Date: Feb 2007
Location: Omaha,NE
Posts: 202
PROS I need your help about this CONTRACT

Ok I have an opportunity to take over this guys contract for this neighborhood. It has 34 residential accounts all side by side and the contract is only guaranteed till Jan 09. It consists of mowing, 5 step fert program and snow removal. He said it takes 3 guys about 7-9 hours in one day. Most yards are decent size but some dont even have backyards. The contract generates right at $37k a year and he is asking $15k what do you guys think? Thanks to all that reply.

JJ
Reply With Quote
  #2  
Old 12-04-2007, 10:58 PM
JaysLawns JaysLawns is offline
LawnSite Member
 
Join Date: Feb 2007
Location: Omaha,NE
Posts: 202
Also he said as long as you do a good job they will extend the contract for at least 2-3 year more years.

JJ
Reply With Quote
  #3  
Old 12-04-2007, 11:02 PM
P.Services's Avatar
P.Services P.Services is online now
LawnSite Fanatic
 
Join Date: Apr 2007
Location: Fenton Michigan
Posts: 6,066
no way. 15k of ads will pull in wayyyy more work than that.
Reply With Quote
  #4  
Old 12-05-2007, 02:14 AM
topsites topsites is offline
LawnSite Fanatic
 
Join Date: Mar 2005
Location: Richmond Virginia
Posts: 21,677
Yeah, that price is way out there.
Reply With Quote
  #5  
Old 12-05-2007, 06:27 AM
supercuts's Avatar
supercuts supercuts is offline
LawnSite Silver Member
 
Join Date: Jan 2007
Location: CT shoreline
Posts: 2,767
Quote:
Originally Posted by briandennis1470 View Post
no way. 15k of ads will pull in wayyyy more work than that.
i would never invest $15k for ads anyhow. nor would i pay much more than $50 lawn if were to ever pay for lawns. and how is he guaranteeing them?? would you be holding money in escarole?
__________________
20 years total service, Full Time since 03'

trucks
mowers
stuff

Sig Sauer Sercurity
Reply With Quote
  #6  
Old 12-06-2007, 07:23 AM
bohiaa's Avatar
bohiaa bohiaa is offline
LawnSite Fanatic
 
Join Date: Jun 2005
Location: Bellville Texas, near Houston
Posts: 5,017
there's simply not enoulf info here to make the call,

to be honest If you could get them for that it would show a return in about 6 months,

that's NOT bad, this is like a total start up with no risk other than the usual custimer issues, taking over sometimes you will have to expect to loose a few.

let us know what you decited
Reply With Quote
  #7  
Old 12-06-2007, 09:03 AM
Herrick's Avatar
Herrick Herrick is offline
LawnSite Senior Member
 
Join Date: Jan 2007
Location: Metamora, Illinois
Posts: 506
Quote:
Originally Posted by bohiaa View Post
to be honest If you could get them for that it would show a return in about 6 months
Not entirely true... you're not taking into account all his operating costs. Personally I don't think I'd ever buy accounts... there is really no way someone can garuntee that the account will stay with you. There's more than enough work out there, you just have to do the legwork to go find it and get it!
__________________
2007 Dodge Ram 2500 HD Mega Cab 4x4 w/Meyer Plow and salter
16'X8.5' Haulmax Enclosed Trailer
2011 Exmark 29hp Kohler EFI 60" ultracut 6
2008 Exmark 31hp briggs 60" triton w/QDS Ultra Vac
2012 Deere 1026R/60" 7-iron
Honda HRX 21"
Stihl handhelds
Billy Goat Truck loader
33 years old - Since 2007 - Solo - FULL TIME
Reply With Quote
  #8  
Old 12-06-2007, 11:34 AM
bohiaa's Avatar
bohiaa bohiaa is offline
LawnSite Fanatic
 
Join Date: Jun 2005
Location: Bellville Texas, near Houston
Posts: 5,017
Quote:
Originally Posted by Herrick View Post
Not entirely true... you're not taking into account all his operating costs. Personally I don't think I'd ever buy accounts... there is really no way someone can garuntee that the account will stay with you. There's more than enough work out there, you just have to do the legwork to go find it and get it!
YES but if your gonna Quote me..... Please quote the full statement.

As I said you may loose a few.

this Business is VERY unlike any other where you can turn a profit from day 1

Investing into a company, where you would have your investment back with in 6 to 9 months is simply unherd of.

that's why its more of a smart investment.

However like others, in this business, It's simply to easy and Cheep to get and keep customers, that's why I would never do it.

I happen to be one of the lucky ones, where I can sell my self and services easily, it don't come that easy to others.

If your the type that's NOT a people person, you kind of have 2 options.

Hire a front man, or purchase accounts.

You know what type of person you are, there for this post is difficult for anyone to give you solid advice...

I had much rather be mowing, What I like to do, than taking care of the daily grind of paperwork, talking to customers, scheduling. and such.

However I cant find anyone who can do it as well as I can.
So I dont get to mow anymore...

These are some of the Q's you will have to ask yourself.

and remember advertisement can be very expensive

As stated earlyer... Keep us posted on your decisions.

And Good luck
Reply With Quote
  #9  
Old 12-07-2007, 12:03 PM
grassnazi1 grassnazi1 is offline
LawnSite Member
 
Join Date: Jan 2007
Location: Memphis TN
Posts: 73
Attn Bohiaa, I take it you approach your customers face to face and NOT with something in writing? Spell checker my friend! Ok I got it out and feel better!

as far as buying accounts... So NOT worth it.... It may look good, but 15k is a ton of cash, guess it depends on how lazy you want to be?

I would invest a fraction of that 15k into some well placed advertising and foot work and then sit back and let the other 10k collect interest or use it for other things with the business.

Basically, my whole point is 15k is a LOT of money for something thats not guaranteed. What if they don't like the way you do it and drop you. Or better yet, hate you and keep you locked into the agreement and the guy lied and under bid and now the customer is a total ass and makes your life a living hell everyday so you drop them? Back to sqaure one without 15k in your pocket. Not worth the investment.
Reply With Quote
  #10  
Old 12-08-2007, 10:35 AM
bohiaa's Avatar
bohiaa bohiaa is offline
LawnSite Fanatic
 
Join Date: Jun 2005
Location: Bellville Texas, near Houston
Posts: 5,017
True there are many varables involved,

And with invertments, and Business deals it's always risky.

15K is NOT a lot of money. sorry it's Just not.

Reminds me of Nasbisco, YOu will have to do your own research on that one.

Basicly everyone thought it was a solid Co. Many people invested VERY heavy into the Co, millions. it was a safe investment by all accounts.

However in the 80's they were bought and sold over night, People woke up to find they were Broke, YES MILLIONS. were lost, 401's and everything.

However with my earlyer statements, I informed the poster that he has to figure it out for himself, I used the exzample of a front man,

that's totly up to him.
Personaly buying accounts is NOT for me, I'm a people person and have no problem talking to customers, and spending money on advertisements to get the customer.

However, With in doing my research, I wont tell you how much I spent, But it was a tidy sum, and of corse my advertisements ARE tax ductable

As so would his purchasing accounts.

Again there are too many Varables to inform someone to buy accounts,
We simply dont have enoulf info.

I try to reframe from giving any Advice on investing, But I will try to point out the pro's and cons

But to be honest If I were to invest 15k and my return would be 30K with in about 1 year..... That's a dream come true.

I mean hell that's about what a truck would cost.

Again NOt a lot of money.
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 04:59 AM.

Page generated in 0.10503 seconds with 7 queries