Should I buy these Clients?

Discussion in 'Starting a Lawn Care Business' started by lawnboy51, Apr 12, 2008.

  1. lawnboy51

    lawnboy51 LawnSite Member
    Posts: 45

    Theres a guy who is selling off his business and customers. He says he has 12 customers for sale. Says they made him $20k last year working just one day a week. He was asking $5k for them but didn't get any offers and now he says he'll negotiate.

    Comments?
     
  2. fool32696

    fool32696 LawnSite Senior Member
    Posts: 992

    No. Half of them will drop you and I sure he exaggerated on the income that they'll produce. That's almost paying $500 per customer. Take the $3000 that you plan on throwing away, spend 2k on some new equipment and 1k on some advertising. If you insist on buying customers, don't pay more than what you'd get for a couple of cuts and put in a provision that if they don't stick with you, you don't have to pay for them.
     
  3. Dave_005

    Dave_005 LawnSite Senior Member
    Posts: 359

    No Way, have him take you around and intro you to each one of the accounts he's trying to sell, and ONLY pay for the ones who agree to Sign with you. and then i would only pay an amount equal to 2 - 4 cuts for each account who signs with you. NEVER buy accounts Blind without talking to the customers FIRST to make sure they will sign with you.
     
  4. robertsturf

    robertsturf LawnSite Bronze Member
    Posts: 1,405

    I purchased 20 customers last year from a guy I know they all stayed with me for the rest of the year. "We" dropped 2 of them for non-payment but other than that it has worked out well for us. We paid him a total of 4 cuts for the accounts 1\2 up front and the rest based on who stayed with us for 30 days. It worked for us but it may not work the same for you. I have gone to church with the guy for years so I know him can't say the same in your situtation. Also see if he'll throw in a non-compete.
     
  5. Smokey5826

    Smokey5826 LawnSite Member
    Posts: 11

    I met with this guy and he took me to look at these properties of his - I was very firm with his 5k price...He showed me 11 accounts and 2 of those were a 'maybe'. Most of his accounts were $25 a cut up to 2 accounts that were $50 a cut. The monthly revenue from those jobs were $1210. He states that he can make over $4000 just doing spring cleanups / mulch, but that seemed a little exaggerated also. feel free to send me a message if you wanted to chat more...
     
  6. NHMTMN1

    NHMTMN1 LawnSite Member
    Posts: 36

    I bought 14 accounts, for 9000.00 lost one, the rest signed. Gross for these is around 36000.00 for the year. Not a bad deal really.
     
  7. N.H.BOY

    N.H.BOY LawnSite Bronze Member
    Posts: 1,604

    Were these year contracts with plowing and spring/fall cleanups? If it's just mowing thats pretty good being we only get around 22 weeks of it...
     
  8. NHMTMN1

    NHMTMN1 LawnSite Member
    Posts: 36

    These do not include snow removal. They are mostly commercial. It includes sweeping, mulch, and chemical treatments.
     
  9. PatriotLandscape

    PatriotLandscape LawnSite Bronze Member
    from MA
    Posts: 1,209

    If you try hard you could get 12 new customers in two days. Don't buy them.
     
  10. PatriotLandscape

    PatriotLandscape LawnSite Bronze Member
    from MA
    Posts: 1,209

    Gros has nothing to do with it what are the net numbers. balance that 9k against the net and you'll be unhappy.
     

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