Buying large account

Discussion in 'Lawn Mowing' started by Popsicle, Aug 11, 2003.

  1. Popsicle

    Popsicle LawnSite Member
    Posts: 189

    I have an opportunity to buy a large estate account from a friend/LCO who is retiring. It's a twice-a-week/year round service (about 7 hours per) plus addition time around the holidays. I've worked the property for him numerous times when he was out of town.

    The sales per year is in the $30k range. My question is, what do you guys/gals think it's worth?
     
  2. GLAN

    GLAN Banned
    Posts: 1,647

    15 - 20%
     
  3. Darwin

    Darwin LawnSite Member
    Posts: 101

    If you have worked the property for him several times in the past, why don't you just bid the work when it comes due.

    Go to the owners (explain the fact you have worked on their grounds numerous times) and discuss the issue with them, and explain what services you could provide their property with if you were to continue after your friend retired.

    Otherwise, How do you know the property owners won't fire you after you buy it from your friend?
     
  4. fblandscape

    fblandscape Banned
    Posts: 776

    I would suggest doing a percentage over time. Going behind this guy's back is a BIG no-no. Word travels fast, and I am willing to bet that this guy has known the client for many years. If you go behind his back, I will bet you $1000 that they will tell him. If you and the guy get along, just do a percentage over time. If the guy tells these people that you are good, that person's word is gold and you are in.
     
  5. Darwin

    Darwin LawnSite Member
    Posts: 101

    fb,

    I'm not saying go behind his friends back.

    It's just an alternative to his "buying" the contract.

    Do you actually think that if someone doesn't "buy" the contract to this place, it will never be maintained again?
     
  6. Popsicle

    Popsicle LawnSite Member
    Posts: 189

    There is no way I would go behind his back. He has been my mentor over this past year as I started my company. I'd rather not do it at the expense of a friend/mentor.
     
  7. fblandscape

    fblandscape Banned
    Posts: 776

    I know that the place will be maintained. What I meant was that this guy is definately going to pick their next landscaper. For you to go to them and say "well when he retires use me" instead of having him either A) give them to you or B) you buy it from him. Then that is not going to look good on your part.
     
  8. Popsicle

    Popsicle LawnSite Member
    Posts: 189

    The retirement is on the QT. The owners are unaware of his plans. He is setting it up for a seamless transition.
     
  9. Popsicle

    Popsicle LawnSite Member
    Posts: 189

    How would you structure a percentage? Increase as the term of the agreement matures? Or?
     

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