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Buying accts, suggestions?

Discussion in 'Lawn Mowing' started by suspicion, Jul 28, 2009.

  1. suspicion

    suspicion LawnSite Member
    Posts: 10

    I am looking at buying some accounts from another company. What is fair to you for maintenance accounts? 2 months? 3? 4? How would no contracts and no guarantee of retention factor into the price for you? Any other suggestions on payment terms etc?

    Thanks!
     
  2. W.L.M.

    W.L.M. LawnSite Senior Member
    Posts: 525

    In PA here I usually see people wanting 10-20 percent of the total amount of what it's worth for a year.
     
  3. tradeyouraccounts

    tradeyouraccounts Banned
    Posts: 344

  4. LouisianaLawnboy

    LouisianaLawnboy LawnSite Silver Member
    Posts: 2,199

    2 cuts. Also expect to lose 25 percent when u switch.
    Posted via Mobile Device
     
  5. kaferhaus

    kaferhaus LawnSite Bronze Member
    Posts: 1,444

    We pay 1 to 1.5 cuts, never a penny more and only buy verified accounts that are "happy" with the current service. Never use any kind of "broker" for this.
     
  6. tradeyouraccounts

    tradeyouraccounts Banned
    Posts: 344

    Tradeyouraccounts.com is not a broker. Ads are listed by the owner of the accounts and all transactions are done by the 3rd parties.
     
  7. scottgalat

    scottgalat LawnSite Member
    Posts: 72

    Value is based on many variables. Some lawn accounts are only worth 1 cut. Some accounts can be worth $$$ millions. Your accounts value will be somewhere between the two.
    If someone is selling you a business grossing 2 million and netting the owner $500,000, do you think that it is worth only 1 cut ?
    Lots of things determine the actual value. It is simple to transfer accounts with 100% retention. If you are a good lawn man, charging a fair price, and provide pro service just like you are supposed to, why wouldn't the customers use you ? What do they have to gain by firing you ?
    If you are a bad lawn man, you are going to lose accounts no matter what, and you should.
    Without knowing the specifics of your deal, we can't offer good advice. You can PM me for specific advice, I always got an opinion...it is one of my problems. I also have lots of experience buying and selling accounts. I do it all day long, everyday.
     

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