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Discussion in 'Lawn Mowing' started by CuttinUP, Jun 27, 2007.
When buying a route from another LCO, what is the norm for price? One, two, weeks revenue, or more?
I talked to an LCO last month and he said he paid 2 1/2 months!
I would never pay more than a month of revenue..if i was to buy a route from an LCO.
i paid one month but you got to watch people my guy went back and took 1/2 of them back the same year i bought them (little weasel)
Thats the bad part about buying like that ....you don't know it the customer will stay with you long enough to make-up for the money you paid..unless you have a contract with all of them..
When you sell you company someday, do you think 1 months gross is a fair amount?After all the hard work you put into building it up? Working long days in the heat and rain, until dark. How would you feel if someone said its not worth that much ill give less than half what your asking. When you get old and ready to retire and you wanna sell you company how much will there be for one months gross or a weeks gross. Why do we keep knocking ourselves down?
A friend of mine paid 3 months last year which wouldn't have been bad, but he lost about 30% of them the first year.
Another guy I know paid 9 months(he says) a couple yrs ago and says he'll sell to me for 6 months...LOL.
I think it would be worth 2 months if you could put down a deposit and pay the rest in say 6 months when you see who stays.
i agree that we dont value ourselves properly enough, but you cant expect to sell your route for much $$ because of the risk involved to the buyer in terms of keeping/losing clients. the real money is made on equip that's bought & pd for.
The norm down here is 2 months ... with the normal issues which follow buying a "route" ... how I did it was the 1st months pay went to the old guy n the last months went too me ... which I fowarded to him AFTER the following month
My 1st route I got into was 50 accounts ... I only lost maybe 2-3 in the year ... some I still have now ... after 10 years ... most that left thru the years was with home sales, kids getting older n cutting the folks yard, people moving in with their own service or dad has a JD ...n the grim reaper paid a visit to some as well
Buying a Business is a WHOLE other thing ... when I sell ... it will be ... as it is now ... Turn Key ...most won't even know a change in ownership
Find out what the route is and then wait till he goes out of business.