Purchase of Yards

Discussion in 'General Industry Discussions' started by swos, Aug 29, 2005.

  1. swos

    swos LawnSite Member
    Posts: 2

    Good Afternoon,

    My partner and I are looking to expand and were recently offered to buy out about 60 yards. These yards are tyically small yards and the current company working them charge around $25 per visit. Basically we have no idea how much to offer to purchase these accounts. I have heard a typical account goes for 2 months profit all the way up to a year. Any suggestions would be appreciated. Thanks
  2. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Posts: 4,900

    There's way to many variables to give a price with the info you supplied. Are they under contract, hows the billing set up IE. per mow, once a month, 12 months, Will the other co. work with you in the transition?
    If no contract and there just selling you the cutomers I would only pat $50 per customer.

    GREENGAR LawnSite Member
    Posts: 12

    Here in Perth we usually pay 4 cuts per customer for regulars. So a $25 lawn would cost you $100. I find it cheaper to do a good job and your reputation gets you customers, also word of mouth from satisfied customers.
  4. jasonnau

    jasonnau LawnSite Senior Member
    Posts: 454

    I bought out a guy just before the season kicked off this year. I bought 12 lawns. They were all somewhere between $30.00 each, and $50 each per cut. I paid $500.00 for all of them. You may want to talk to your accountant first. My accountant said that a purchase like that is only depreciable over "I think he said" 15 years. That's a long time to wait to recoup your money if your spending a bunch. Maybe I got lucky. I made back the $500.00 within the first two week of spring though. One of the customers spent over $600.00 getting a portion of their lawn re-seeded, and just mowing them one week brought in close to that. It was well worth the investment. I would say that if you have to spend a bunch, I'd just advertise in the neighborhoods you are already in and the neighborhoods you want to be in. In my opinion, they are not worth much. The guy I bought them from also took me to all of them, sent out a letter saying that I would be taking over, and introduced me when possible. Everyone of them switched over. I even increased the prices on a couple with no problems.

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