Buying customers

Discussion in 'Starting a Lawn Care Business' started by grassmasterdawn, Apr 5, 2006.

  1. grassmasterdawn

    grassmasterdawn LawnSite Member
    Posts: 49

    I'm in the process of trying to start a business, so of course, I bought one of these dopey books on how to start a landscaping/lawn care company. It mentioned that some of the larger companies are in the habit of selling off unprofitable or out-of-the-way customers to smaller landscapers. Is this true? Have any of you actually ever done this? Just curious.
     
  2. mowerhands

    mowerhands LawnSite Member
    Posts: 7

    If you buy accounts from someone there can be no guarantee that these people are going to go with your service, its their choice. you might 25 to 50 percent of them
     
  3. Desertdweller

    Desertdweller LawnSite Member
    Posts: 159

    Lawn and mowing cutomers are less loyal than irrigation customers. If you're buying make sure the price you pay is worth losing a large percentage. Some guys will take a percentage of work you do for their customers instead of all money up front. This way if the customer goes elsewhere you're not out anything.
     
  4. GreenUtah

    GreenUtah LawnSite Senior Member
    from SLC, UT
    Posts: 866

    why buy when you can just approach the very same companies and see if they will consider subbing those clients to you? This way you aren't buying someone else's problem child..lol..by the way, out-of-the-way clients only work for you if you are already in that same area, otherwise it's the exact same problem for you. You're not going to make more profit because you are small, only if you are more efficient becasue you are already in the area with a focus on serving that tpye of customer with your existing methods and equipment. Larger companies have economy of scale on their side, so believing that everything that they can't make a profit at, you will be able to is foolish.
     
  5. grassmasterdawn

    grassmasterdawn LawnSite Member
    Posts: 49

    I live in an area that probably wouldn't be profitable and would be considered out-of-the-way for other landscapers on the Eastern Shore (there are none in this particular town). If there are actually any customers around here, I figured I could capitalize on that.:)
     
  6. grassmasterdawn

    grassmasterdawn LawnSite Member
    Posts: 49

    So it wouldn't be like buying out the remainder of a service contract? It almost sounds like my money would be better spent elsewhere.
     
  7. GreenUtah

    GreenUtah LawnSite Senior Member
    from SLC, UT
    Posts: 866

    and this book didn't start off with determining the market for your business? Burn it..burn it today. If no one is offering the service in your town, assuming that it wasn't errected last night, what exactly do you see your chances of working there being?
     

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