buying accounts

Discussion in 'Lawn Mowing' started by gglawns, Oct 20, 2005.

  1. gglawns

    gglawns LawnSite Member
    from Midwest
    Posts: 38

    I have recently been offered these accounts and equipment. The guy wants to sell me a 2000 MTR commecial Z 60" with 300 hrs and a trailer and he makes about $500 a month. He wants $3500 for all of it. I think that is alot, I wouldnt make any money back on that investment until Sept of next year! What do you all think?
     
  2. jimmbo407

    jimmbo407 LawnSite Member
    Posts: 114

    I just bought a persons business this year. I will start taking over in the spring. I received 15 accounts worth $15,920 the first season, if they all are retained. I also get a 52 inch ferris WB hydo with sulky, it is only a 3 years old (unknown how many hours). A 12 foot trailer and assorted trimmers, and blowers. I will also offer other services making these accounts more profitable. My return on investment will be 2 months. There are still things that could go wrong, there are no contracts with these accounts. But even if I loose 25% of the accounts next year I will still make money. It also gets my foot in the door in a high end subdivision, all large lots. Lets face it I am buying equipment more than accounts. I have been helping with the accounts over the last month, meeting the clients, and the old owner will work with me to make a smooth transition. I will pay him $4100.00 on April 1st. This is all in writing. I know I gave you a lot of info but the more may help. I am in the chicagoland area, different areas may pay more or less. I hope this helps you make your decision, in the end, I think the question is, can you keep the accounts and will it be a smooth transition from one lco to the next.

    Let us know what happens.:drinkup:
     
  3. daveintoledo

    daveintoledo LawnSite Silver Member
    Posts: 2,587

    usually because they are not profitable, or are a bunch of pita's........
     

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