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How much for these contracts

Discussion in 'Lawn Mowing' started by nobagger, Jan 13, 2006.

  1. nobagger

    nobagger LawnSite Gold Member
    from Pa
    Posts: 3,065

    I am thinking of buying a guys lawn care contracts,and just looking for a rough guess at this point. He does construction full time and he says he is ready to get rid of the lawn care business. He has 25 residential accounts averaging $25.00 per lot. I was thinking of offering him 2k for the accounts and he also has some equipment but I am more interested in the accounts. I know from previous posts everyone says I have to see the books etc. but again I am only looking for rough guess at this time. Thanks in advance.
  2. cborden

    cborden LawnSite Member
    from 46140
    Posts: 177

    If it is the beginning of the season and every customer is willing to sign a contract with you, I would offer at most the amount of money equal to two cuts per client. I have enough equipment and I myself would not offer much more than 80% of appraisal value for the equipment. This works for me, may not work for everyone.:waving:
  3. Ol'time Lawncare

    Ol'time Lawncare LawnSite Senior Member
    from NJ
    Posts: 497

    First shouldn't you see if the customers will let you take over! just cause he sells out doesn't mean you can just take over.Maybe you should take the list of customers and go around and talk with them before offering him a prize on his contracts.
  4. Green-Pro

    Green-Pro LawnSite Bronze Member
    Posts: 1,420

    Yep, I call it buying blue sky, and I wouldn't give much for it up front. I would try and make it dependent on customer retention, say retain 80 - 85% of customer base to cement the deal.
    I had a guy want to sell me his fert & squirt, looks like a great deal on the surface, just more money than I wanted to spend at the time. He sold the customer list to someone else, no communication to these customers, nada. I ended up with several calling me for the 2006 season fert & squirt, because they resented being sold, saw me around town, and didn't know the other guy.
    I would be careful and ensure my azz was covered before ponying up any money.
  5. grassguru32

    grassguru32 LawnSite Member
    Posts: 16

    What you should do is have the guy send a letter to his customers saying your take over the lawns and what a good guy you etc...Also have him put your contracts with his letter, and who ever signs with you for the year you pay him for.
  6. nobagger

    nobagger LawnSite Gold Member
    from Pa
    Posts: 3,065

    Excellent idea, thanks.

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