buying accounts

Discussion in 'Business Operations' started by kandklandscape, Mar 14, 2007.

  1. kandklandscape

    kandklandscape LawnSite Senior Member
    from PA
    Posts: 341

    i see this often on here. i am now going to buy some accounts. there are about 15 commercial accounts, around $250k in work. mowing, fert, you know lawn main accounts. now im wondering exactly how much should i offer the guy? he wants $3,000 i dont think thats enough, but what do you all think, now i understand about 30% of them will leave? is this true?

    whats your past experencies on this guys?

    should i offer him a commission for a year to?

    let me know i have a meeting with him at 1pm tomorrow, so kinda pushing it here.
     
  2. BobcatBoy06

    BobcatBoy06 LawnSite Member
    Posts: 183

    From from our past experiences they can work well unless, the company that is currently taking care of these accounts wants to stay in the business, then he will probably sell the accounts to you and go and get the contracts back after the sale. You have to have something set up saying that they won't be trying to take the accounts back off you hands. How did you find out about these accounts? Did they contact you or did you see they listed for sale someplace?
     
  3. kandklandscape

    kandklandscape LawnSite Senior Member
    from PA
    Posts: 341

    no he is a friend of mine. we are meeting with my lawyer tomorrow as well. giving him a deposit, and we are going from there.

    he is staying out of the business, my lawyer will have a contract pulled about 25 pages long, similar to the one i had done when i sold my subway sandwich shop. so what do you think, did it work out for you? we are going to have him sign a contract, and part of it will be that we get a contact list and we call all customers, if they stay then he will get a commision on the total yearly amount. if they do not stay, well then he doesnt get no commsion.

    we own a commercial landscaping company. we started a new lawn main company this year, diff name and all and we are going to start doing lawn main again.
     
  4. kandklandscape

    kandklandscape LawnSite Senior Member
    from PA
    Posts: 341

    how much have you paid for how many customers bobcatboy?
     
  5. BobcatBoy06

    BobcatBoy06 LawnSite Member
    Posts: 183

    What is the reason for the company selling the accounts to you? Did they have a good name established in your area? How long has he had the accounts, were the companies happy with the service they were giving? Also is the company selling the accounts to you going out of business or are they just getting out of commercial work.
     
  6. BobcatBoy06

    BobcatBoy06 LawnSite Member
    Posts: 183

    I'd go for it, if you have the opportunity to make money buy putting out 3,000 for 15 accounts you can't go wrong.
     
  7. jsf343

    jsf343 LawnSite Bronze Member
    Posts: 1,767

    what?! your kidding me right? those accounts gross $250,000.00?? 15 commercial accounts for $3,000? did I understand that right? If so then heck yeah I would buy them. $3000.00 is nothing. A common price is between 1 and 3 months gross for an account usually. That seems too good to be true, just do good work for them and they shouldn't leave.

    Jeff
     
  8. michindi

    michindi LawnSite Member
    Posts: 98

    sounds like a good deal to me. But I would have a no compete clause for him to sign. Friend or no friend you never know what could happen.
     
  9. kandklandscape

    kandklandscape LawnSite Senior Member
    from PA
    Posts: 341

    he is going completly out of business, he also has a bobcat s300? i belive full package with ALL attachments AND trailer for 25k

    yes i know it is a good deal, im going to be talking to my lawyer in the morning so hopefully all goes well.

    so everyone deff says buy them?
     
  10. procut

    procut LawnSite Bronze Member
    Posts: 1,853

    Yes! That is such a good deal I can hardly believe it. I'm going to assume that you mean they gross $250,000/year? If so, getting them for $3000 would be the deal of the century.
     

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