Is it worth buying a current lawn round ?

Discussion in 'Business Operations' started by Maxwells, Feb 16, 2005.

  1. Maxwells

    Maxwells LawnSite Member
    from NZ
    Posts: 73

    I have the oportunity to buy a current lawn run with 90 lawns ? is this worth it ? has anyone done this then found that the run wasent quite as good as it looked on paper ? am i better just to build my round myself ?
     
  2. walker-talker

    walker-talker LawnSite Platinum Member
    from Midwest
    Posts: 4,771

    It cost a lot in advertising dollars and takes time to aquire that many lawns. Some will tell you different, but locations have a lot to do with it.

    How much are they asking for?
     
  3. Mclaughld

    Mclaughld LawnSite Member
    Posts: 85

    Before you buy them, go on the route with the current owner. You'll see if they are worth it. You'll make sure your not buying a buch of lowballed houses.
     
  4. Maxwells

    Maxwells LawnSite Member
    from NZ
    Posts: 73

    i guess we have all heard it before this one is a break up - she owns the company and just wants to get rid of it ! the equipment is not worth much just good will for the existing round - they want as much As they can get for it - around $6,000 + (nz dollars)
     
  5. GarPA

    GarPA LawnSite Silver Member
    from PA
    Posts: 2,585

    can they give you a simple breakdown?.. like:


    30 are at$35 per service call
    25 @ $40
    45 @ 45

    if it were me I'd want to know how the majority of them are priced and then go look at most of them. Then I would "value" what I'd be willing to pay for the entire route.

    As others mentioned above, if most of them are underpriced, you might lose allot of them if you have to raise the price to where it needs to be.If they are low-balled currently, I might have to walk away from the deal as the risk of losing many of them makes the proposition shaky at best
     
  6. Maxwells

    Maxwells LawnSite Member
    from NZ
    Posts: 73

    Thanks it makes sence - she has just been left in the s..t by her ex and just wants to get rid - she is trying to sell as a package but i have said i only want the trailer and on going round
     
  7. walker-talker

    walker-talker LawnSite Platinum Member
    from Midwest
    Posts: 4,771

    That comes out to $66 for each account. It has been my expierence that I have to pay more than for accounts just in advertising cost. Like others have mentioned, if the accounts are profitable, and only then, it might be a good buy. If it was me, I would at least take a good look at this offer.

    Has she mentioned what these accounts gross? I am just curious.
     
  8. Maxwells

    Maxwells LawnSite Member
    from NZ
    Posts: 73

    its hard to say - i have worked out that each account is done on average every 3 weeks lets say @ $25 would give you $433 per account each year worst case senario - if you only held 50 of the 90 it would give you $21K be4 tax operating expences
     
  9. walker-talker

    walker-talker LawnSite Platinum Member
    from Midwest
    Posts: 4,771

    You locations says you are from NZ....is that New Zealand? If so, is that typical to mow grass every 3 weeks?

    Also, if only 50 of the 90 would decide to stay with you....that's not good. The way I look at it, 100% should at least let you start. What I mean is that they are already paying for mowing service, why would they not go with you....if they are going to continue paying for service?
     
  10. Maxwells

    Maxwells LawnSite Member
    from NZ
    Posts: 73

    yes new zealand - i guess it would work out 3 weekly over the year
     

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