buying accounts.........

Discussion in 'Lawn Mowing' started by lja, Dec 15, 2000.

  1. lja

    lja LawnSite Member
    Posts: 27

    hey guys

    had a pretty good summer this year.....i ran into another lawn care professional who who filling in for his sick dad .....it seems he wants nothing to do with his dads customers and offered them up to me ..... there r only 4 customers and he gets 400 a month each to maintain them ..he says i can meet the new customers and they will stay with me ...his dad has had them for 15 years or so ...

    i never bought customers before ...always picked them up on word of mouth ..how do i go about it ....monthly payments or a lump sum(ohh no)......and whats a good bid to buy accounts ......

    i know its long .... and do i have a hangover ..but if any one has ideas ......

    thanks
    ricks lawn care............
     
  2. bob

    bob LawnSite Platinum Member
    from DE
    Posts: 4,254

  3. awm

    awm LawnSite Gold Member
    Posts: 3,354

    This deal sounds a little more solid than
    most.Meet the customers. if there pretty solid, I'd
    bid two times two months gross on each one. Thst is
    if your work is on par with his.



    thanks tm country.







     
  4. cleancut

    cleancut LawnSite Member
    Posts: 222

    5%-10% of annual gross for those accouns..So if you mow them for 9 months give him $200 to $400 for the accounts as long as they sign a contract stating that they will continue to use your services..There was a guy in my area that bought about 240 accounts...By last count he was down to 160..So he's already lost 80 accounts and will not be able to recoup his investment...I think he will be in big financial trouble after the winter is over...Clean-Cut
     
  5. BadAndy

    BadAndy LawnSite Member
    Posts: 10

    awm, why 2 times 2 months?
    can't we just go 1 times 4 months?
     
  6. landscaper3

    landscaper3 LawnSite Bronze Member
    Posts: 1,354

    Cleancut has it right, 10% of sales GROSS sales. We are trying to purchase a company thats does $120,000.00 gross sales without equipment and will only give them 10% plus equipment at added cost. They want 30% we said 10% is all we will give, we will see in a month or two if he will let it go for our terms. MAKE SURE all customers have contracts or are willing to sign contracts before purchasing them. To start out you realy should make up flyers or have door hangers made up, pass 1000 around get 5% return thats 50 lawns.

    [Edited by landscaper3 on 12-16-2000 at 03:38 AM]
     
  7. awm

    awm LawnSite Gold Member
    Posts: 3,354

    I was getting a little help from my
    13 yr old when i did this.I assumed most
    would figure out what i meant.To be clear
    I would only give two months. TOO many ifs
    to pay more.COUNTRY TM
     

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