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Buying Mowing Accounts

Discussion in 'Lawn Mowing' started by yardco, Jun 11, 2009.

  1. yardco

    yardco LawnSite Member
    Posts: 14

    I just had a recent ex-partner approach me about purchasing accounts from him. We started this business about 4 months ago, two months into it, realized we had two very different business ideas. It turns out mine works better. I have been picking up accounts and he hasn't. In fact, he's giving up the lawn care business and offered to sell me accounts. One account is worth $25 per week and one account is worth $20 per week (based on my pricing structure). He offered to sell them to me for $280 which was too much for me and told him no. But that brought up a question that I'm not too sure how to answer...

    When acquiring accounts from another company, is there a general rule of thumb based on how much they are worth a week?

    Personally, I wouldn't pay anymore than a month's worth of mowing for the account. There's no guarantee that the account will be there in two months (unless of course there are contractual agreements).
  2. kaferhaus

    kaferhaus LawnSite Bronze Member
    Posts: 1,444

    You're right on the money on the price... that's the MOST I'll pay.

    Contracts are usually NOT transfereable unless there's language in the contract that says so.

    Were I a customer, I'd never sign such a contract.
  3. FastMan

    FastMan LawnSite Senior Member
    Posts: 782

    I've sold accounts before. Charged a percentage of the revenues the purchaser collected off each account over the course of a year. Paid me monthly. I went arouind and introduced buyer to client.

    Once sold a mowing/landscape business lock, stock and barrel. Equipment and all accounts. If I remember correctly, I think I charged around a third of my net yearly income for the accounts.
  4. mdlwn1

    mdlwn1 LawnSite Silver Member
    Posts: 2,443

    Under most circumstances...they are virtually worthless. I'm generalizing, but for a 25 account and under duress.........
  5. Fleur De Lawn

    Fleur De Lawn LawnSite Member
    Posts: 197

    He is quiting don't buy them you helped sign them up probably.
  6. MnGreen

    MnGreen LawnSite Senior Member
    Posts: 354

    Guy up this way wanted 65g for 50 accounts that were sub $30 accounts. Asked to explain the appraised value he reached and if the accounts were under contract (with sale) for @ least 2 years. Offered to consider 3 cuts no contract, 4 - 6 contracted.
    Haven't heard a word from him.
    Some people are out of touch.
  7. JDiepstra

    JDiepstra LawnSite Bronze Member
    Posts: 1,511

    As you already said, one month.
  8. cowboytim

    cowboytim LawnSite Member
    from MN
    Posts: 180

    I sthat that shain guy?

  9. yardco

    yardco LawnSite Member
    Posts: 14

    Yeah, that's what I figured. I'm not sweating it over 2 accounts. But if things come up in the future where I am able to acquire some accounts, I just wanted a heads up. Thanks for all the input.

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