Say you knew what your competitor was charging....

Discussion in 'Lawn Mowing' started by johnsonslawnmanagement, Sep 17, 2009.

  1. johnsonslawnmanagement

    johnsonslawnmanagement LawnSite Senior Member
    Posts: 909

    I have been in negotiation with another company about buying him out. He's been trying to butter me up for about two months now. He gets me a copy of his income for the year off his quickbooks and he made a boo boo. Printed off a detailed report, not a summary! It breaks down each account (monthly payment, annual cost, extra work, etc.) Long story short, he sold to another company last week (my main competitor). This guy has been a real pain because I have been doing all the previous owners weed control for years, new guy says he will use a friend of his cause he is cheaper. Didn't even ask me to refigure my price.
    My question is, I don't want to be a cut throat, but I can do the work cheaper than him. Would you go after the accounts? I already know the accounts and already know the property managers from doing the weed control. It's just a question of ethics for me cause I hate a cut throat.
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  2. Greenboy24

    Greenboy24 LawnSite Senior Member
    Posts: 297

    I would advertise as normal, covering the areas that he covered and you will probablt get a few calls because of the fact that their previous company is under new management and they already have a relationship with you...I would not go out of my way to specifically get those accounts though, but I may up the advertising in the area
     
  3. kj330

    kj330 LawnSite Member
    Posts: 170

    Johnsons lawn... I would think that both of you as business owners wouldnt of negotiated anything, without you (as the potential buyer) first signing a Non Disclosure/ confidentiality Agreement Contract. If you did not than he is an idiot and shouldnt be in business. So go after the accounts....If you did sign , than i would steer clear of the accounts because a smart business owner would of had you sign the above docs.(and in them, it states thay you cant come after these accounts if a deal falls thru,and they are sold to someone else for usually 5 years.) You could get in deep $hi+
     
  4. Greenboy24

    Greenboy24 LawnSite Senior Member
    Posts: 297

    Non-compete clauses very rarely stand in court...the reason is that someone cant tell someone they can't work. They can't affect someones ability to support themselves...

    Occasionally they will stand but it is rare
     
  5. ALC-GregH

    ALC-GregH LawnSite Fanatic
    from PA
    Posts: 7,053

    As stated in quite a few other threads, it's a dog eat dog world out there. Jump on them without hesitation. From the quick read, it sounds like he sold out from under you without letting you know even though you had disgusted it with him prior. If he DID, jump on them and let the customer know that you know the properties very well and would like to continue servicing them and give them your price. Just don't say anything negative about the other guy, word will get around quick if you do. Be business oriented with your approach. Are you done yet?
     
  6. STIHL GUY

    STIHL GUY LawnSite Fanatic
    from CT
    Posts: 5,225

    i would advertise the area
     
  7. topsites

    topsites LawnSite Fanatic
    Posts: 21,654

    Yeah I really hate being a violent person but say what if I come around and sneak up on you quietly so that you'll never
    see it coming and then out of the blue just smack your ass upside the head good and hard, is that all right with you?
    For the sake of argument, we can just assume it's because I think you're being a pita.

    So then...
    Considering the above, would you say it is relatively safe for me to assume that if I did that,
    you might get even with me later, with some good old fashioned payback?
    Not saying you would, but do you think I could assume as much?

    By now I'm guessing you might gather that I probably wouldn't mess with those accounts, lol.
     
    Last edited: Sep 18, 2009
  8. Shane100

    Shane100 LawnSite Member
    Posts: 65

    Here is the way I see it. Every new customer/account I add was someone elses before they chose me. In this case they are/were your customer/accounts. Now they may continue to use you or they can move on. Only thing is you now have the upper hand on the competition. You said yourself the other guy is cuting you out. Sounds like he is the "Cut Throat" to me. I personally would not let these customers go because of some deal between 2 other companies. Sure it sucks for the guy who paid someone else for part of your paycheck but no way I would let him into my wallet without a fight.
     
  9. unkownfl

    unkownfl LawnSite Gold Member
    Posts: 3,838

    sell the list to him in lieu of signing a non compete.
     
  10. LushGreenLawn

    LushGreenLawn LawnSite Silver Member
    Posts: 2,123

    There are a few friends that I have that I will not go after their accounts. Other than that, business is business.

    Do you think comcast would not have salesman contacting direct TV's customers if they got ahold of a list of names and numbers?
     

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