Selling off accounts

Discussion in 'Lawn Mowing' started by Sir mowsalot, Sep 16, 2006.

  1. Sir mowsalot

    Sir mowsalot LawnSite Senior Member
    Posts: 310

    I never did this before and im wondering how you guys go about selling off accounts.

    I seem to recall reading something about charging 3x the price of what you charge per cut, is this about right? Also, how do you go about it, do you look up other lawncare companies in your area and start calling around seeing if any one is interested?
     
  2. dcondon

    dcondon LawnSite Silver Member
    Posts: 2,246


    No way would we ever buy other accounts!!!!!!!! But you may get some help on here though.
     
  3. GrassMonkey

    GrassMonkey LawnSite Member
    Posts: 20

    I recently bought a small book of business. It consisted of 5 commercial accounts and some residentials. I paid 2x monthly revenue but these were annual contracts not per cut accounts. Per cut accounts are not worth very much. I know of guys around here who will give per cut accounts away in order to get out to them while not leaving the customer hanging.

    BG
     
  4. Uranus

    Uranus LawnSite Bronze Member
    from Mass
    Posts: 1,624

    My buddy just doped off a list of accounts that I'm taking over for him as he grows his tree business. over $600 a week worth of mowing with fall cleanups and some plowing. I paid NOTHING. I'll take care of him if he ever needs help on the spot and I'm treating him and his wife to a nice dinner during the holidays as a thank you
     
  5. lsylvain

    lsylvain LawnSite Senior Member
    Posts: 777

    They are worth what someone will pay for them. lol it is kind of smart A$$ed but it's true. I would definatly call other companies in the area, just to see. I've heard people say they wouldn't pay anything for accounts and I've seen people willing to pay quite a bit for accounts. In fact there was one account that I would have paid an entire years gross just to get. It was a taco bell in a kroger shoping center. I mowed the shoping center and all the outparces accept the taco bell. The stupid taco bell always made everything look bad because I mowed everything else and it was all cut the same height and mowed at the same time so the Taco bell sat out like a sore thumb and I always felt that it made me look bad even though I didn't cut it I'm sure a lot of people thought I did because I was there every week.
     
  6. mythntr

    mythntr LawnSite Member
    Posts: 38

    Maybe I just have had some luck with this, I dont know. If a guy checks out the accounts, meets the people, gets a feel for the job and what needs to be done, then I think I would pay even more for them. Its a short term expense that pays long term dividends. Its really nice if it fills in a day or two on one of your truck routes.
     
  7. PROCUT1

    PROCUT1 LawnSite Platinum Member
    from TN
    Posts: 4,909

    People buy businesses and accounts all the time. Yes they are worth something. And no its not pennies on the dollar.

    Consult a CPA knowlegeable in service business and seek advice there. Youre not gonna get a true business answer from a bunch of solo lawnguys.
     

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