Buying another companys accounts

Discussion in 'Starting a Lawn Care Business' started by scotty2, Mar 10, 2006.

  1. scotty2

    scotty2 LawnSite Member
    Posts: 24

    I was let know that a friend of a friend is selling his accounts and equipment. I've already talked to the individual about his company and what he wants. All I ask is if this is a good idea or any one else done this before. From what I know the person got transfered to another area and that is why he is selling all.
  2. chriscraft

    chriscraft LawnSite Senior Member
    Posts: 390

    its a good idea to see accts recievable form them 1st to check pricing, see if they paid on time, moved . died. etc. it is a good idea however. around here they usually run about 4 weeks worth of price for example a $25 cut would sell for $100.00
  3. scotty2

    scotty2 LawnSite Member
    Posts: 24

    I'm going to look at his books tomorrow then I should have a better idea what to price him at.
  4. scotty2

    scotty2 LawnSite Member
    Posts: 24

    Anything else would me out alot Thankls
  5. oslo

    oslo LawnSite Member
    Posts: 54

    I'm not a big fan of buying accounts. Spend the money on equipment and advertising, the customers will come.
  6. Freddy_Kruger

    Freddy_Kruger LawnSite Bronze Member
    Posts: 1,064

    If you buy Bob's Lawn Care they might wonder where bob is. I'd rather spend money advertising for new customers and buying new equipment.
  7. CC Lawncare

    CC Lawncare LawnSite Member
    Posts: 114

    I agree. Spend the money on advertising and you will be way ahead of the game. Buying somebodys accounts is a joke in my book.
  8. befnme

    befnme LawnSite Bronze Member
    Posts: 1,413

    heck not only that when he stops servicing them they will come looking to you for service and you can set your own price instead of taking his old prices .
  9. Drew Gemma

    Drew Gemma LawnSite Bronze Member
    Posts: 1,510

    through the years buyinh the right accounts is worth it buy the ones that fit into your scheme of things. I have bought roughly 50 accounts and I only lost 3 and cut 4. Plus when you buy accounts set it up as a pay to play you only pay on the ones that switch to you that way you don't pay for any dead beats or dropped accounts.
  10. PMLAWN

    PMLAWN LawnSite Gold Member
    Posts: 3,535

    Hint!--"From what I know the person got transfered to another area and that is why he is selling all."

    That is all you need to know, This guy has a full time job that is moving him which means that he was a part timer LCO with a mindset of doing this for a little extra cash. I am sure his books don't even start to cover true overhead. My bet is this does not include trucks or computers or storage areas. These are things that he does not consider part of the company and there never priced the work to cover things like that.
    I may be off base here but I bet 100 to 1 that I am not.
    I say NO, not a good idea.

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