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How much to pay?

Discussion in 'Starting a Lawn Care Business' started by detailed lawn care, Feb 9, 2007.

  1. detailed lawn care

    detailed lawn care LawnSite Member
    Posts: 32

    A guy is wanting to sell me 35 accounts that average about four thousand a month. All the customers would be staying since we serviced all of these lawns last year. Just not sure on what to pay for these accounts?
  2. LushGreenLawn

    LushGreenLawn LawnSite Silver Member
    Posts: 2,121

    You're already only bringing in around $28 per property. If you pay very much for them, your not going to have very much left over.

    My yards range from postage stamp to 1/2 acre, and I am averaging around $32 oer yard, and I'm trying to increase it because I think its a little low.

    Are all of your yards really small? If there all postage stamps, I personally would offer him $3 per lawn, so you would net $25 per lawn on average.

    If they are bigger, I'd wonder if its worth it or not.

    I've only been doing this for 1 season, so don't rely soley on my opinion, see what the more experienced guys think.
  3. jinx 88

    jinx 88 LawnSite Member
    from ozarks
    Posts: 44

    Does he have a asking price?
  4. J Hisch

    J Hisch LawnSite Senior Member
    Posts: 952

    Lush Green Lawn, Ill give you 3 dollars per lawn , when can I send you a check. So he is grossing about 35k for the season. I would offer him 10k and he walks away. that still gives you 25k to pay for additional labor cost, and you will still make money on them this year. Plus next year is all gravy. This is why I have been able to grow so much so fat is LCO's practially giving their business away. LCO's need to wake up and see just how much their business's are really worth.
  5. detailed lawn care

    detailed lawn care LawnSite Member
    Posts: 32

    He has not set a price yet. I was just trying to get a ball park figure on how much to offer him.
  6. detailed lawn care

    detailed lawn care LawnSite Member
    Posts: 32

    I was going to offer around 8k at first just to see what he thought.
  7. echeandia

    echeandia LawnSite Bronze Member
    Posts: 1,131

    The $25 is per cut. Over the season there would be what 30 cuts? So you would have to pay $90 per account. Total for year $3150.

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