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I met someone that paid $1200 for 10 accounts.

Discussion in 'Lawn Mowing' started by K.Carothers, Jun 27, 2006.

  1. K.Carothers

    K.Carothers LawnSite Bronze Member
    Posts: 1,124

    I met someone that paid $1200 for 10 basic lawn accounts.
    Are there more people that are willing to do this? If so, I think I might just go out and build multiple 20 accounts per route and sell for $2400.

    Personally, I would never pay that.


    kc
     
  2. topsites

    topsites LawnSite Fanatic
    Posts: 21,654

    Me, either... For the main reason that it's not my problem.
    Even if the Lco were willing to go door-to-door with me and talk with the customers to see how it goes, I'd still not pay more than what it costs me to advertise for mine / conversion factors, minus a 20-odd percent loss rate as well, maybe 500 dollars tops, 250 down and 250 after I earn at least 1,500 off the whole lot.

    So, it costs me $1,000 / year to advertise and next year will be closer to $1200 but this gets me 20-30 new customers every year so we're talking $40 - $60 per converted, paying customer. Granted, I waste a lot of time giving free estimates but at the same rate I like to go out anyway because it's easy work lol and for an excuse to take the car out for a ride and to keep my mind sharp.
     
  3. Sandgropher

    Sandgropher LawnSite Senior Member
    Posts: 909

    In Aussie a basic round sells for 50% of total income for the year, say $25000 for a gross of $50000, for this you get the equiptment to, if a rounds really compact with high prices it could be worth up to 100% of the gross, where else can you buy a business that pays for itself in the 1st year ??
     
  4. MMLawn

    MMLawn LawnSite Gold Member
    Posts: 3,569

    Sounds like nothing more than 1 months revenue.....actually a decent deal if they are under contract and if you need the business. If they service them say 9 months out of the year then they walk away with $10,800.00 for their $1.200.00 investment.
     
  5. K.Carothers

    K.Carothers LawnSite Bronze Member
    Posts: 1,124

    If you pay 100% of gross, how do you pay for all the other expenses?

    This will not get paid off in the first year.

    I wish we could get that for accounts in the states, I would of made my second million by now.


    kc
     
  6. Sandgropher

    Sandgropher LawnSite Senior Member
    Posts: 909

    Yes you are right you would 'nt get your money back from 100% gross, but should be close at 50% and it would take you years to get there advertising from scratch in a lot of areas if you didnt buy the business, 99% of people buy into a business if they want to be successful in Aussie because all the hard work has been done for them, you get up to 4 weeks training as well.
     
  7. K.Carothers

    K.Carothers LawnSite Bronze Member
    Posts: 1,124


    I agree about what it takes to actually build a business. People just don't put a value on that.

    We all take on here about no paying for someones accounts and at the same time want our businesses to be worth millions(myself included).


    I've built 4 pizzerias and sold them. The sale price was different for each one. It had little to do with gross sales.


    kc
     
  8. AintNoFun

    AintNoFun LawnSite Bronze Member
    Posts: 1,807

    i agree...

     
  9. jsf343

    jsf343 LawnSite Bronze Member
    Posts: 1,767

    Mike is right on, form what I have read and seen a good going price is typically 1 to 3 months gross . Of course there is always a lot of variables, are they on contracts? are they prime accounts? in good locations? on and on. I guess it depends on what you are after and what you are willing to pay AND how it would help your business.
     
  10. K.Carothers

    K.Carothers LawnSite Bronze Member
    Posts: 1,124


    They are basic cuts.

    I think I might just start selling customers.

    No more headaches.


    kc
     

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