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Buying accounts????

Discussion in 'Starting a Lawn Care Business' started by Uranus, Jul 12, 2006.

  1. Uranus

    Uranus LawnSite Bronze Member
    from Mass
    Posts: 1,624

    One of my buddys si getting out of the business and asked if i wanted some accounts. We haven't talked any numbers yet, but it sounds like there are 15-20 accounts. I just started my own company this year and have 30 full time mowings and 5 every other weekers. I know any more and i will need to hire somone, but my question is what kind of info sould i get from this other LCO. I know other guys out there have gone down this road and i am wonder what kind of money i need to come up with for 20 accounts. I've seen some of the lawns and they range from $35 to $75 per cut.
  2. lawnandplow42

    lawnandplow42 LawnSite Senior Member
    Posts: 508

    the most common way of selling accounts that i've seen is what you would make at that account in one month. For example, if you on average get 4 mowings in a month at an account do 4 X the price of that account for one mow= value of account.

    I'm sure theres lots of other ways to sell accounts, but thats the only way i've seen it done
  3. smarino21

    smarino21 LawnSite Senior Member
    Posts: 345

    Good Thread I Started About The Same Thing In My Profile Check It Out
  4. Keytee04

    Keytee04 LawnSite Member
    Posts: 14

    Be careful with this one. If these are residential accounts, you should make sure you know what kind of quality job these people expect. Some people just want a cut and some want well manicured lawns mowed on time. If you purchase these accounts with cash up front, what happens when the first time you mow, the homeowner doesn't like the job and tells you not to come back?? I've seen this happen alot. Just be very professional and if you want to keep the account, make sure the customer is happy. Just because you purchase an existing account doesn't guarantee you a year of service.
  5. 29 Palms Property Management

    29 Palms Property Management LawnSite Senior Member
    Posts: 347

    Do all of these accounts have contracts?
  6. grassmanak

    grassmanak LawnSite Senior Member
    Posts: 792

    first things is do they have contracts, and id say 1 months profit is fair to purchase these accounts.
  7. ribbie78

    ribbie78 LawnSite Member
    Posts: 150

    I'm in a similar situation as Williams LC; and I've appreciated the advice/input for him. I'll tell you what; I've been on this site for only 3 days but have really found in invaluable source of experience, opinions, and ideas that can and will be helpful!

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