% of customers you keep

Discussion in 'Lawn Mowing' started by meets1, Apr 26, 2005.

  1. meets1

    meets1 LawnSite Gold Member
    Posts: 3,787

    For those of you who have purchased existing companies, customer list, etc. what % of those accounts stay with you, the new company? You can based this upon mowing accts, spray/fert accts, whatever it is that you may do.
     
  2. ROCKYM

    ROCKYM LawnSite Member
    Posts: 13

    I purchased 65 accounts and lost only 2. The two I lost I never met.I tried to meet everybody with the guy who sold me the accounts and that worked very well. The two I lost I was never able to set up a time to meet with them to introduce myself and they sounded like PITA people anyways when they left a message canceling services.For the most part I think talking to people that 10% loss is expected.
     
  3. Precision

    Precision LawnSite Silver Member
    Posts: 2,995

    depends very much on the clientel you are purchasing and the quality and image your company projects.

    If you are buying from a scrub and you look like your prices will be higher, expect huge turn over.

    If you are buying from a guy who had his act together and had a personal relationship and they are going to be just another number, expect huge turn over.

    I would expect no less than 25% within 3 months of transition and up to 50% with in a year.
     
  4. meets1

    meets1 LawnSite Gold Member
    Posts: 3,787

    I guess i am in the ballpark then. Purchased one company 10 yrs ago - only added clients. Expanded our operation and purchased another company 3 yrs ago, 1st yr - everyone, 2nd yr, lost 8%, this yr, steady. This spring purchased another company - lost about 18%. Most of these people called and explained that they had "JOE" for so long and family friend etc etc and didn't want to hurt no one thought this was a good time to find my competition!

    So all in all, I guess I am doing OK. Thanks!
     
  5. Drew Gemma

    Drew Gemma LawnSite Bronze Member
    Posts: 1,510

    the actual percent is roughly 25 to 30 percent I have done buy outs twice with a 15 % average between both. good luck pay only on comission and get a lawyer. search for one of my post it outlines how I have done it with great sucess I must say.
     
  6. Mower63

    Mower63 LawnSite Member
    Posts: 65

    Purchased 2 companies last year, one mostly commercial (did not lose any) and the other mostly residential (clustered, high-end) (lost 2 out of 58). I've already dropped some of the unprofitable accounts and others due to consolidating the routes to control expenses.

    I made it a point to introduce myself to all the accounts AND really focus on building relationships with the right accounts first (big $$ revenue).
     

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