Selling accounts

Discussion in 'Business Operations' started by LB1234, Feb 24, 2013.

  1. LB1234

    LB1234 LawnSite Gold Member
    Posts: 3,210

    I have decided to close up shop. This is a situation in which something came up that I couldn't resist. I have a buyer lined up for the commercial accounts and the equipment. the buyer has no interest in the residential accounts, even if under contract.

    I have about 20 residential accounts I would like to sell, none are under contract nor do the customers know I'm out of business yet. Should I get them under contract than sell (which I would really prefer not to do)? Or is there a way I can "sell" (term used losely) them and basically say 'x' amount for the lead and than 'x' amount based on the work performed? sorta like a finders fee.

    the lawn service accounts are worth a little over 900 a week or about 22k-25k a year (depending on the season) and I tallied the major upsells (fert programs, mulch, & leaf cleanup fees) and have an additional 10k in revenue. My thinking was a grand up front for the 20 or so leads than 5-10% of the total projected revenue once under contract.

    any tips advice or thoughts are appreciated. thx :waving:
     
  2. xclusive

    xclusive LawnSite Bronze Member
    Posts: 1,052

    I think your best bet would be to ask for X upfront and then get maybe 2 more payments based on the sales and if the new lco was able to retain the client for the duration of the year. This would give you an opportunity to get a little more money and the new owner a chance to recoup some money if a client just drops them because its a new person maintaining the property.
     
  3. Forever Green Landscaping

    Forever Green Landscaping LawnSite Member
    Posts: 138

    Where are you located?
    Posted via Mobile Device
     
  4. grassmasterswilson

    grassmasterswilson LawnSite Platinum Member
    from nc
    Posts: 4,468

    A. Smart buyer will not buy based on the possibility of up sales unless he is established in that area and your business is large.

    I went round and round with another company about buying him out. He didn't mow and kept saying "potential". He just couldn't understand that I'm not going to pay him money for something that he doesn't do and that I would need to sale to the customer.

    Think $0.33 per yearly gross dollar is about the going rate for mowing accounts. Remember you will probavly lose some clients inmthe transfer so take that i to you price. Make sure your books are detailed and a buyer can understand them. If you mowed the person 30 times make sure the books say that. Also consider some money upfront and a few payments down the after 30 or 60 days.
     
  5. LB1234

    LB1234 LawnSite Gold Member
    Posts: 3,210

    that sounds resonable. not looking to make a killing, just some extra money for my efforts.
     
  6. LB1234

    LB1234 LawnSite Gold Member
    Posts: 3,210

    just to clear up...my "upsell" is work that I already have been peforming for these customers in the past. i have records to prove what was done. yes, it is a potential so i do have to factor that in.
     
  7. LB1234

    LB1234 LawnSite Gold Member
    Posts: 3,210

    so basically i'm correct in my thinking. Negotiate an amount up front for the account leads. Than depending on those accounts that are kept develop a mutually agreed upon payment plan for those contracted accounts.
     
  8. grassmasterswilson

    grassmasterswilson LawnSite Platinum Member
    from nc
    Posts: 4,468

    If its reoccurring factor it in. If it was a one time job you may try to add iron but as a buyer I would question it.
    Posted via Mobile Device
     
  9. georgialawn88

    georgialawn88 LawnSite Bronze Member
    Posts: 1,075

    you should ask sydney lawn guy. he will prob know...... sorry had to
     
  10. Holleywood

    Holleywood LawnSite Member
    Posts: 59

    Lol
    Posted via Mobile Device
     

Share This Page