Price of a route ???

Discussion in 'Lawn Mowing' started by KLMlawn, Aug 14, 2002.

  1. KLMlawn

    KLMlawn LawnSite Senior Member
    Posts: 443

    Have been talking to a fellow who has about 50 accounts for sale, he is looking to get out of the maintenance end of things for now to go back to college.
    They supposedly gross about $1600 a week, are not that far out of my current service area, or rather to say I could fit them in with the days I am currently in those areas with little or no problem.
    I haven't personally seen them, there are a few bi-weeklys, but most are weekly maint. He says there is good potential to do trimming and clean-up and that he has not really pushed the lawn care aspect ( has about 12-13 now) so fert. programs might be able to be sold to a few more. I am guessing that the average property size is about 1/4-1/3 acre and averages about $30 a week ..... He says he will be continuing his tree business and bobcat service and would be more than glad to pass along any new customers he gets that are interested in maint. or for ones he might have installed a new lawn for that need cutting .... he also says he would stay around for a time to help with the transition and make things go more smoothly.

    What do you all feel would be fair for this arrangement?
     
  2. crazygator

    crazygator LawnSite Bronze Member
    Posts: 1,048

    Are these customers on contracts with him? If not you might loose some just due to the change. If they are on contracts then it would be worth much more. Is he willing to take you to each and every account and explain you will be handling things from now? This would help as well.

    I would work the price into who ever stays with you for the season, and do it as a monthly payment, not a bulk upfront thing.

    How much does he want?
     
  3. nu83

    nu83 LawnSite Member
    from omaha
    Posts: 238

    IF I wanted them, meaning I had looked over them and decided they would be profitable for me I would offer as high as two weeks gross on accounts that stay next year. I figure I pay about $70 to gain a new account through flyers so not higher than that.
     
  4. Brickman

    Brickman LawnSite Bronze Member
    Posts: 1,249

    I just sold my stuff, all the equip and the customer list. So far all the customers stayed with the new guy. They did not want to find some body new this late in the year. I know some of them he is going to dump next year. I priced my equipment at used value, and about 95% of one months income. My banker and his both thought it was a fair price for every body. I worked with him for about 2 weeks or so to train him in, and so he could meet the customers. So far it seems things are going good for him.

    It all boils down to the question, DO YOU WANT THE CUSTOMERS?
     
  5. Ground Master

    Ground Master LawnSite Senior Member
    Posts: 505

    equipment- pay far market value

    customers- pay a percentage for 1 year 10 to 20 percent
     
  6. KLMlawn

    KLMlawn LawnSite Senior Member
    Posts: 443

    I appreciate your replies, and here are a few more details.
    He says that last year he had all of the customers on contracts, but this year due to dealing with a divorce and contemplating getting out of the maintenance end of things he didn't follow thru on getting everyone to sign. He also says that he has several tree spraying contracts signed but hasn't been diligent enough to bother following up and doing the applications.
    I do want the accounts but nearly $300 per, seems a bit steep, I would be more inclined to possibly pay $100 each, which for the most part seems to be in line with what most of you are saying.
    Around here it is not uncommon to ask for 10 weeks of cutting for an account if it is a quality account ... BTW, I did say "ask", that doesn't necessarily mean that is what is actually paid.
    But if you look at it anywhere from 4 weeks to 10-20% of the season (on just the maintenance portion I am assuming), it all works out in the area of about 1/3 - 1/2 of what he is asking.
     
  7. Brickman

    Brickman LawnSite Bronze Member
    Posts: 1,249

    I would not pay $300 per account. When I sold I asked for one month income on top of equipment. To me that seems reasonable. This guy with his laxness in persueing his biz should not expect or get top dollar for his accounts.
     

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