Buying another LCO's customer list

Discussion in 'Landscape Architecture and Design' started by turbo5560, Aug 22, 2007.

  1. turbo5560

    turbo5560 LawnSite Senior Member
    Posts: 304

    So heres the deal... a guy that i sorta know got a hold of me the other day and wanted me to buy his customer list because he wants to get out of the business, at least in my area. His route is about 30 houses and he says it takes him about 2 days by himself to get done. He said he makes about $1500 a week (during those 2 days). He says that he will garantee that I would get the customers as well. He was told that it was worth about $30,000 but said that he would sell it for $5000 to $10,000. (yes i know thats a wide range) He said most, if not all are vacation homes from people down south and are nice accounts. I'm going to look at some of them tomorrow morning, but just wondering if others have had something like this happen to them. Does that price sound reasonable? There is no equipment included, which is fine, i have it all already. So it's just for the customers list.
  2. P.Services

    P.Services LawnSite Fanatic
    Posts: 6,322

    what was the name of his company again? i think i know who you are talking about
  3. turfquip

    turfquip LawnSite Senior Member
    Posts: 860

    First of all, is your area experiencing a drought this year? That will lessen the value of the route. No way I would pay more than twice the value of the completed route - $3,000. That assumes again, there is not a drought happening as there is here in Kentucky.

    Usually, sellers will agree to finance as well. If he balks - then hold out till he comes around to your way of thinking.
  4. Ramairfreak98ss

    Ramairfreak98ss LawnSite Silver Member
    Posts: 2,210

    well i once was going to be "given" some accounts or so i thought two years ago, guy kept holding off holding off, then he sold them to a relative or something. I had inquried about them several times and it never materialized. If the lawns were close to my routes, i would love more and grab them up if i could take them. But i agree, If someone came to me with their route, and said i have 20 $50 lawns to cut weekly, for $2k worth of lawns extra per week, Id be inclined to offer somewhere around $4-5k with a guarantee at least 90% are locked into the current years contract and 70% or more will renew the following year, or else theres a chance say all of them go elsewhere for whatever reasons the next year and you didnt make much on that deal.

    Id also do something were if i take over the lawns this week, each week for 5 weeks id pay out 1k to the original company that had the lawn service contracted. If they want a lump sum, its too much risk for that amount of money.

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