Just got the asking price...is this accurate?

Discussion in 'Lawn Mowing' started by Pizpoppa, Mar 25, 2001.

  1. Pizpoppa

    Pizpoppa LawnSite Member
    Posts: 19

    Before I posted how a friend of mine was going out of the business and I offered to buy his customers from him. He has a total of 17 and is asking $2,850 no equipment. He makes a little over 14 grand off mowing, and a little over 3 grand on extras; totals around $17,000. So is this price too much, too little, or juuust right?
     
  2. 1st impressions

    1st impressions LawnSite Member
    Posts: 58

    Pizpoppa

    I am about to purchase 17 accounts that are under contract
    for about $2250. The yearly cutting gross is just under $15k
    and extra work might bring the total to $18k. No equipment is involved. I offered $1500 down and an extra $500 at year end depending on how many stayed and how much extra work came my way. The man wants $2500 so we will probably settle
    on $2250.

    I probably would not do it if it were not for extra accts
    I will be getting from the "broker" of the deal who is trying to help his friend.(long story). He is going to try and get me 10 extra accounts.

    The only reason I am even thinking about doing this is because I do not want to take the time to run around giving estimates.My routes will be set long before the mowing season starts and THAT is what appeals to me.

    Make sure that you get a list of the accts. so you can take a look at them and decide if they are priced according to what you would charge.

    In my opinion, 17 accts. is not that much. You have to decide if you could take that $2000+ and advertise in the paper or with flyers to get "your own" 17 accts. I bet you could.

    Every situation is unique and yours is different than mine
    so you have to decide what is best for you.

    Good luck!
     
  3. joshua

    joshua LawnSite Bronze Member
    Posts: 1,226

    personly if i were to buy accounts both those deals seem very good.just think of it as a investment like equipment, your investing in those properties and in return you will make more money. but also , you don't have to buy accounts you should get alot of calls if your good.just my opinion
     

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