Customer Buy Out

Discussion in 'Lawn Mowing' started by Lawn-N-Garden Guy, Oct 21, 2003.

  1. Lawn-N-Garden Guy

    Lawn-N-Garden Guy LawnSite Senior Member
    Posts: 321

    I have recently been dealing with an individual that is hanging up the biz.
    He currently has 65 customers that he wants to unload, average weekly for cutting $1400.00,But the question is how much is it worth,And am I guaranteed that all 65 will stay with me.
    I'm thinking of some kinda % over the cutting season,that way I'm not paying for a dead horse.
    Currently I have 30 accounts which is about 12 hrs a week.
    This way I am hopping I can hang up my current full time CATV job and go full time lawn care.
     
  2. Acute Cut

    Acute Cut LawnSite Senior Member
    Posts: 980

    I would do this. sign a contract with the old guy saying you will pay him 1.5 times what each customer signs up with you for a month. ok, doesnt make sense then try this. Say mr smith agrees to change over to you. He is charged 100 per month and expects you will charge same. If you do and the guy agrees to come over you pay the old lawn guy 150. 2 payments thought. half up front and the other half after the first month. And some of them might drop you too within that first month. Tell the old guy that you will not pay him for people who dont transfer or drop you within the first month unless you do a bad job.

    I just recently went through this and it seems to have worked over pretty well. OH, and make sure you are only paying him the 1.5 times the amount the customer agrees to sign on with you for. So if mr. smith is a 100$ month customer for other guy, but he only wants you to do it every other week then the old guy only gets 75$ and not 150.

    And, just as a precaution, make sure you have a no compete clause signed.
    JMO
     
  3. geogunn

    geogunn LawnSite Gold Member
    from TN
    Posts: 3,010

    LNGG--assuming you aquire the 65 properties, my math tells me that that you will average only $21.54 per cut per week assuming of course weekly cut.

    are you sure that you want to go full time for that kind of money and effort?

    GEO
     
  4. Hillside Lawn & Snow

    Hillside Lawn & Snow LawnSite Member
    Posts: 7

    This is a good point. I get $1200+ a day for 90 properties, I'm not sure that 1400/wk for 65 is that good a deal.

    Do you get any of his equipment? What kind of shape is it in?
     
  5. Phishook

    Phishook LawnSite Bronze Member
    Posts: 1,143

    10-20% of the annual income. Ask to see his records.
     
  6. T.E.

    T.E. LawnSite Senior Member
    Posts: 799

    $21.54 per lawn for the average is probably why he is getting out of the biz!
     
  7. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    Unless every one of those 65 props were the size of my spare bedroom and within walking distance of all, I'd be getting out too. $21 for a lawn? I don't even drop a tailgate for under $35...
     
  8. spin2098

    spin2098 LawnSite Member
    Posts: 131

    Well the first thing I would do is get 2 years contracts on all of the people who agree to come over to you.
     
  9. spin2098

    spin2098 LawnSite Member
    Posts: 131

    Well the first thing I would do is get 2 years contracts on all of the people who agree to come over to you.
     
  10. spin2098

    spin2098 LawnSite Member
    Posts: 131

    Well the first thing I would do is get 2 years contracts on all of the people who agree to come over to you.
     

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