buying lawns, what should i pay?

Discussion in 'Lawn Mowing' started by PT2003, Mar 12, 2007.

  1. PT2003

    PT2003 LawnSite Member
    Posts: 9

    i have the opportunity to buy 16 lawns from a company thats giving up. the lawns range from $25 to $70. On a good year he said he made around $19800
    OK then takeway for gas and wear and tear and the fact that every year is not a good one, some years you mow 28 and another you may only mow 24 and then every other expense of being in the lawn business. WHat should i be paying for these jobs? whats would be a good price for me and him. how do you figure out something like this?
     
  2. springover

    springover LawnSite Member
    Posts: 38

    Take his list, due the math yourself...then maybe give him 5%...
     
  3. GarPA

    GarPA LawnSite Silver Member
    from PA
    Posts: 2,585

    Have you walked each property and looked at them closely from a time to service standpoint? I would then add up the total manhours it would take to service all of them and compare that to the total revenue, and decide if there is adequate dollars per manhour. We sell "time" so guesstimating how long each property will take, is critical to determining if they are worth buying.
     
  4. supercuts

    supercuts LawnSite Silver Member
    Posts: 2,785

    if your newer you might want to buy because you need alot of work, i would never buy but if i did i would never pay more than the price of one cut of each or $50 each.
     
  5. IN2MOWN

    IN2MOWN LawnSite Platinum Member
    Posts: 4,993

    Why buy them when you can get them for free?
     
  6. stumpslawncare

    stumpslawncare LawnSite Member
    Posts: 153

    Zero, you have no guarantee that the customer will stay with you after you buy them, unless you have a signed seasonal contract with the customer I would not buy. JMHO
     
  7. Precision

    Precision LawnSite Silver Member
    Posts: 2,995

    the guy is quitting, can't make it work.

    likely he isn't much of a businessman
    likely he has no idea what they are worth
    likely they have no real value as they are underbid

    buy in stages. 30% up front , 30% after 3 months, 40% after 6 months.

    Prorate price based on retention at set milestones.

    No contract mow and blow accts have very little loyalty and thus very little value.
     
  8. timmac

    timmac LawnSite Senior Member
    Posts: 479

    i wouldn't pay a penny. I started last year and ended the year up with 23 yards. I didn't pay a penny for them. you will be turning away work. just find yards on you own.
     
  9. ACA L&L

    ACA L&L LawnSite Bronze Member
    Posts: 1,108

    we would offer company x 2 mowings for each customer. If thew lawn is $40 per cut then we would offer him $80 for that property. the property has to be a weekly customer in good shape, we must talk with customer first.

    We pay half before our first cut and the second cut after the the first billing cycle. If any cancel in the mean time we would not pay the second half of the $80. if they all stay then you just paid for the lawns and your up two cuts. It has worked well in the past. Alot of guys try and sell them at some inflated price, but you cannot sell a service for vey much when there is no guarantee. No one and i mean no one around here would pay more than half a month for any lawn. As far as extras like fert/cleanups and anything else goes you cannot put a price on a mybe service.just thought we would throw that out there for you to chew on.
     
  10. Bingham Brothers

    Bingham Brothers LawnSite Member
    Posts: 66

    I bought 50 accounts last year to get started and it was a great way to get cash flow right away. I bought equipment and trailer as well. I kept 47 out of 50 and ended up with 110 at end of year. Worked well for me.
     

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