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is this a good deal

Discussion in 'Lawn Mowing' started by tramahor, Apr 8, 2002.

  1. tramahor

    tramahor LawnSite Member
    Posts: 82

    Ok today I was offered a chance to by 30 accounts that bring in 1600.00 a month for 2000.00 First you have to understand in Sacramento 50.00 is avg for a small lawn a month. But also understanding we work 12 months out of the year. I have done this now for five years part time and I think this is a good oppertunity to expand. I know most people on here think that accounts are not worth money when bought without them being on a contract. So some of my questions to you are... I meet with him on wendsday) what are things to look for when buying accounts, No compete clause? also how would you work out if not all the customers stay with you? 1000.00 now and a percentage in a month of all of the customers that stay with you. I know a couple of people on here have bought accounts. Please tell me some of the ends and outs. Does 2000.00 sound fair, would you try for 1500.00? Please help....

    Ramirez Landscaping Co.
  2. Soupy

    Soupy LawnSite Gold Member
    Posts: 3,125

    That's only $13 dollars a Cut. By the time you add in cost. Your not makeing much. these lawns better be pretty darn small, and close to each other. To make a decent profit you need to do 4 an hour. that means 10 minutes a lawn and 5 minutes drive time per lawn. Do these customers pay for extras. There's alot of questions you need to ask this guy. Like Why is he selling them and is he getting out of the business completly. I didn't hear no mention of equipment. Make sure he's just not dumping his mistakes on your lap. The only way I would buy them is if I knew I could find an 18 year old with his own truck and 21" mower that I could Sub it out to him for $200 a week. While I was out cutting lawns that at least brought home $100 a month.

    Ask alot of questions to this guy, make sure you get to look at each one up close before jumping into anything. It could work. You just have to ask yourself if you will make what you want per hour on this. .
    Just my $0.02

  3. cuttingedgelawncare

    cuttingedgelawncare LawnSite Member
    Posts: 23

    i would stay away from this deal..........1600 a month for 30 is rediculous even for small lawns. you must have a decent minimum........ $13 on average tells me that some are more and some are less. even a $20 min. is better than that.......20 bucks isnt too much to ask for on any sized lawn.

    Just my 2 cents

  4. tramahor

    tramahor LawnSite Member
    Posts: 82

    thanks for the info guys, keep it comming. You would be supprised, 50.00 is common for small lawns here in Sacramento, Thats why I do this part time. I work full time in the ER @ UCD 3 , 12 hour shifts so this is extra income to put my daughter through college. (she is 3 and its only me and her ) But your right its hard after you pay taxes, ins, and your biz lic not too much left over. Thanks guys.....
  5. Soupy

    Soupy LawnSite Gold Member
    Posts: 3,125

    If You think your getting a fair price for each cut, then buy it. He is only asking for 5 weeks worth of cutting for them.

    I would still try for the $1500, maybe that way he will mett you in the middle at $1750.


    BAMARED LawnSite Member
    Posts: 206

    You might need to ask this fellow that's selling you these accounts if you can have until the end of the week. Also, ask him if he would mind if you went and spoke with each of these 30 new prospects face to face. (Only 8 a day or perhaps some or all in the evening.) This will prove to be very informative and will help you better estimate who will stay will you, who's about to hit the road, what the previous guy did wrong/right, etc., etc., etc., as well as be very impressive to the customer that you took the time to come speak with them.

    Good luck,

    Steve Parsons
  7. Esby

    Esby LawnSite Senior Member
    Posts: 662

    If you say the average is $50.00 for a small lawn in Sacramento, then why are these accounts only pulling in $13 each? Am I missing something here? I think this is a terrible deal. Whats with the big price difference between "average", and the accounts we are talking about here. After taxes, insurance, gas, equipment...ect....what do you have left? Make sure to push the numbers around here before you do anything. From the info I have recieved it seems as if you are losing money by even thinking about taking on these accounts. Sorry to sound negative, but I'm just giving you my honest opinion. Good Luck
  8. MuskTurfKing

    MuskTurfKing LawnSite Senior Member
    Posts: 338

    $13 is WAY too cheap for a cut, I won't work for less than $25, I do have a couple exceptions, but we won't go into that.

  9. AK Lawn

    AK Lawn LawnSite Member
    Posts: 186

    Hank, sometimes i just wonder, with the start of the other thread about tobacco, but know you say you won't touch a lawn for less than 25$ what is that, some lawns just aren't that big but beside the point you state you only have 9 lawns and then you go on to say you have a feww exceptions, how many can there be if you only have nine lawns, not to rag but just confused?
    AK Lawn

    sorry about going off topic
  10. MuskTurfKing

    MuskTurfKing LawnSite Senior Member
    Posts: 338

    No problem, and you do deserve an explanation. I cut all my lawns at no less than $25, one is right next door, friends of the family, so I cut them at $20, and another is a mow and go, old lady, nice as can be, I just mow it and it takes no more than 20 minutes, $15.

    Hope that clears that up, if you have any more questions feel free to ask.


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