Purchasing existing accounts?

Discussion in 'Starting a Lawn Care Business' started by lawn & order, Oct 17, 2005.

  1. lawn & order

    lawn & order LawnSite Member
    from fl
    Posts: 1

    I'm just starting up a lawn business and was wondering what is the typical rate of figuring the price for buying someone elses existing accounts. Getting going has been slow and I was recently informed of a reputable long term business that wants to eliminate some of there smaller residential accounts since they are acquiring more larger commercial accounts.
    Thanks,
    Ron
     
  2. PMLAWN

    PMLAWN LawnSite Gold Member
    Posts: 3,535

    Going out of business- Will sell all accounts
    Read that--Our accounts are priced to low and we went broke

    Selling residential to go commercial
    Read that--Our residential are not profitable

    Need to cut loose some accounts, For sale
    Read that- Getting rid of PITAs

    If you are new and still learning pricing and costs i would stay away from buying accounts for a while.
    Accounts are too easy to get than to pay for someones else junk.
    Try different way of advertising first.
    You really have to know your numbers before you buy a bunch.
     
  3. daveintoledo

    daveintoledo LawnSite Silver Member
    Posts: 2,587

    pmlawn has good advise to give
     
  4. GreenUtah

    GreenUtah LawnSite Senior Member
    from SLC, UT
    Posts: 866

    I also wouldn't spend for residential mowing accounts. They're a bulk commodity with many in the market each year. Usually a quick marketing campaign can net you more per dollar, timed right, than purchasing an account. That being said, there are exceptions, particularly if you live in a market that is fairly locked up and this company controls a large volume in that market and youjust have to be there. If they are long term clients, full service and under contract for more than this season.
    As companies grow, the focus of their services may shift as they become able to exploit new avenues that weren't intially available to them, either because of experience, finances, equipment or personnel. It's certainly not unreasonable to think that in that situation a company may have valuable clients in a segment, but does not want to continue dedicating resources in that area as they grow elsewhere. So, that being said, keep both in mind (what PM said and this) have a cautious eye, but also be watching for opportunities. They knock all the time, some people just can't hear them unless it's via a garbage can over the head and the knocking is done with a bball bat.
     
  5. PMLAWN

    PMLAWN LawnSite Gold Member
    Posts: 3,535

    I see you went to the same school that I did.
     
  6. Team Gopher

    Team Gopher LawnSite Platinum Member
    from -
    Posts: 4,041

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    Hi lawn & order,

    Why so? What have you been doing to aquire new customers?

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