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  #1  
Old 02-24-2013, 10:01 PM
LB1234 LB1234 is offline
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Join Date: Dec 2004
Location: Central Jersey
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Selling accounts

I have decided to close up shop. This is a situation in which something came up that I couldn't resist. I have a buyer lined up for the commercial accounts and the equipment. the buyer has no interest in the residential accounts, even if under contract.

I have about 20 residential accounts I would like to sell, none are under contract nor do the customers know I'm out of business yet. Should I get them under contract than sell (which I would really prefer not to do)? Or is there a way I can "sell" (term used losely) them and basically say 'x' amount for the lead and than 'x' amount based on the work performed? sorta like a finders fee.

the lawn service accounts are worth a little over 900 a week or about 22k-25k a year (depending on the season) and I tallied the major upsells (fert programs, mulch, & leaf cleanup fees) and have an additional 10k in revenue. My thinking was a grand up front for the 20 or so leads than 5-10% of the total projected revenue once under contract.

any tips advice or thoughts are appreciated. thx
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  #2  
Old 02-24-2013, 10:23 PM
xclusive xclusive is offline
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I think your best bet would be to ask for X upfront and then get maybe 2 more payments based on the sales and if the new lco was able to retain the client for the duration of the year. This would give you an opportunity to get a little more money and the new owner a chance to recoup some money if a client just drops them because its a new person maintaining the property.
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  #3  
Old 02-24-2013, 10:24 PM
Forever Green Landscaping Forever Green Landscaping is offline
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Where are you located?
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  #4  
Old 02-25-2013, 06:58 AM
grassmasterswilson grassmasterswilson is offline
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A. Smart buyer will not buy based on the possibility of up sales unless he is established in that area and your business is large.

I went round and round with another company about buying him out. He didn't mow and kept saying "potential". He just couldn't understand that I'm not going to pay him money for something that he doesn't do and that I would need to sale to the customer.

Think $0.33 per yearly gross dollar is about the going rate for mowing accounts. Remember you will probavly lose some clients inmthe transfer so take that i to you price. Make sure your books are detailed and a buyer can understand them. If you mowed the person 30 times make sure the books say that. Also consider some money upfront and a few payments down the after 30 or 60 days.
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  #5  
Old 02-25-2013, 08:25 AM
LB1234 LB1234 is offline
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Location: Central Jersey
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Quote:
Originally Posted by xclusive View Post
I think your best bet would be to ask for X upfront and then get maybe 2 more payments based on the sales and if the new lco was able to retain the client for the duration of the year. This would give you an opportunity to get a little more money and the new owner a chance to recoup some money if a client just drops them because its a new person maintaining the property.
that sounds resonable. not looking to make a killing, just some extra money for my efforts.
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  #6  
Old 02-25-2013, 08:28 AM
LB1234 LB1234 is offline
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Join Date: Dec 2004
Location: Central Jersey
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Quote:
Originally Posted by grassmasterswilson View Post
I went round and round with another company about buying him out. He didn't mow and kept saying "potential". He just couldn't understand that I'm not going to pay him money for something that he doesn't do and that I would need to sale to the customer.

Think $0.33 per yearly gross dollar is about the going rate for mowing accounts. Remember you will probavly lose some clients inmthe transfer so take that i to you price. Make sure your books are detailed and a buyer can understand them. If you mowed the person 30 times make sure the books say that. Also consider some money upfront and a few payments down the after 30 or 60 days.
just to clear up...my "upsell" is work that I already have been peforming for these customers in the past. i have records to prove what was done. yes, it is a potential so i do have to factor that in.
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  #7  
Old 02-25-2013, 08:30 AM
LB1234 LB1234 is offline
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so basically i'm correct in my thinking. Negotiate an amount up front for the account leads. Than depending on those accounts that are kept develop a mutually agreed upon payment plan for those contracted accounts.
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  #8  
Old 02-25-2013, 09:48 AM
grassmasterswilson grassmasterswilson is offline
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If its reoccurring factor it in. If it was a one time job you may try to add iron but as a buyer I would question it.
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  #9  
Old 02-25-2013, 09:52 AM
georgialawn88 georgialawn88 is offline
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you should ask sydney lawn guy. he will prob know...... sorry had to
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  #10  
Old 02-25-2013, 01:19 PM
Holleywood Holleywood is offline
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Originally Posted by georgialawn88 View Post
you should ask sydney lawn guy. he will prob know...... sorry had to
Lol
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