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question about selling route

Discussion in 'Lawn Mowing' started by jason1978, Oct 5, 2005.

  1. jason1978

    jason1978 LawnSite Member
    Posts: 45

    I'm selling my customers due to going into a different business. What do most of you use as a guide as how much to sell the route for?
     
  2. jimmbo407

    jimmbo407 LawnSite Member
    Posts: 114

    Well I just bought a route. I bought a use 4 year old ferris 52" walk behind. A redmax blower 1/2 season old and 14 accounts. The accounts are all high end worth 15,260 if I cut 28 times next season. I DO NOT have contracts with these people, I would have paid more for the accounts if there were contracts ( or service agreements ). I have been working with the old lco this year for a smooth transition I figured in a 25% loose rate for customers ( that is on the high side I only expect to loose these customers if they move.) I paid $4100.00 for the equipment and the route. I hope this helps, I imagine that area your in could dictate what your business is worth also. Let me know what happens, maybe I paid to much lol.
     
  3. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Posts: 10,178

    would a tighter route, be worth more $$$?
     
  4. Mower For Less

    Mower For Less LawnSite Senior Member
    Posts: 823

    I would pay more for a tighter route, becuase it would be more profitable.

    One rule of thumb I have heard for buying ANY business is 4 times yearly PROFIT (Net). This may be tricky as many lawn businesses do not know their TRUE overhead, and thus may not have a true profit figure.

    Kevin
     

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