price for accounts

Discussion in 'Lawn Mowing' started by lawnboy82, Mar 30, 2001.

  1. hey guys and gals-
    i was talking with a guy who i have known for many years now. he wants to get out and move to florida. here is what he wants to sell me. only accounts. there are between 60 and 70 of them. they range in prices from 25 - 125 a cut. i would say though that there are more under 50 than there are over 50. there is only 1 at 125. and that is something like 3 acres. it takes 3 of his guys 2 1/2 - 3 hrs to cut. they use 48" walk behinds. and do all of the accounts in about 2 1/2 to 3 days. 3 guys. he has some fertilization accounts. lots of work, i could make the money back on tree work alone. he does between 90 and 100 thousand dollars a year in business. not profits but before expenses in checks. he claims that there is a lot of cash too. my accountant told me to give him a percentage of the money made off the accounts for a period of time. however i know if i do that it would be too much seeing as how my work (trees) costs a lot more than what he does there now. he is telling me that he wants like 100K for just the accounts. i think he is out of his mind. he told me that one guy offered him 80 already but he turned it down. i think that all of these numbers are high. so let me know what you think that kind of sale would be worth. a friend of his sold him 50 accounts a couple of years back for 10K but that was just cutting grass accounts which he made money off of from gardening. the lawns from that sale which he kept are not a lot of money. biggest one i believe is 90 a cut. no contracts just per cut. any help would help.
     
  2. gway

    gway LawnSite Member
    Posts: 36

    Hey Lawnboy...

    tell your friend that his pricces arent the only things that are high!!!

    $100.000 for his buis is just plin stuppid!!! you can pick up that many accounts in a year or two with some good advertise...

    tell him to get the weed out of his hands and talk straight...
     
  3. cajuncutter

    cajuncutter LawnSite Senior Member
    Posts: 626

    Are you suppose to work for free your first year? I have seen that some of the guys on here say the 2 months gross is the going rate. This was a first for me. Down here it is usually just 1 month gross. Atleast that is what I paid for some of my accounts.
     
  4. SLSNursery

    SLSNursery LawnSite Senior Member
    Posts: 442

    Lawnboy do you have a SHIFT key?
     

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