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Should I take...or pass?

Discussion in 'Lawn Mowing' started by emil35, Oct 19, 2006.

  1. emil35

    emil35 LawnSite Member
    Posts: 213

    Have an offer to buy out a local group's accounts. Roughly 20 accounts, ~$500-600/week (~$15K for the season)...asking $2500.00. No contracts, all residential. Sounds like they could all be handled in one LONG day, or two easy days. Route would cover roughly 35 miles driving. Would you take it, or pass?

    I'm in college and currently have some commercials that take an afternoon, and a few residentials that take up a half-day at the most. Looking to keep my hours low, but still make as much as possible. If I take them I figure I could do the commercials during the week on a light/no class day, and all the residentials on the weekend. Think I should take em, or let em go? Thanks!
  2. surgeon83

    surgeon83 LawnSite Member
    Posts: 49

    In my opinion that doesn't sound too far off. Many I have seen for sale go for 4x the cutting price- for example, $500/week would sell for $2000. I'd try that offer first.

    MOW PRO LAWN SERVICE LawnSite Bronze Member
    Posts: 1,566

    Can you handle all the extra work.
  4. MowerMoney

    MowerMoney LawnSite Senior Member
    Posts: 282

    $2500 is about 1 month's cutting. Sounds about right.

    But I would want to go around to all the clients with the current owner to talk to the customers to ensure that they will stay with you at least for the next year. IMO
  5. Shawns Lawns

    Shawns Lawns LawnSite Senior Member
    from Maine
    Posts: 638

    Personally i would not buy an account but that's just me.:nono: There is no guarantee they will stay with you and if you wanted to raise the price they might just show you to the curb. So you wasted a lot of $$.
  6. emil35

    emil35 LawnSite Member
    Posts: 213

    Thanks for all your responses so far. I think I could handle the work load, although it would be hard at times. I'm going out to view all the sites here soon and will try to get it at 3x or 4x the weekly price...try and bargain alittle. All the customer's have said they would keep service after the change, but for instance I know most of the sites are $25/cut and my min is $30...maybe $35 next year, so I'd have to increase prices, and like mentioned, I wouldn't want to lose half of them.

    My main other concern is the fact that I'd have to drive alot more than I currently do. My commercials by far pay better (profit roughly the same amout w/commercial sites that I'd make w/these residentials accounts for sale added to my current residential base), are easy, and don't whine about everything. The property managers of my current commercials have other sites in my town (vs. this residental loop for sale that's all out of town) so I may be better off trying to pick up a few more commercials vs. alot more residentals, work less but make more. So in other words, would I be better off going primarly commercial and keeping my route in town, or expand with these residentals into new markets? I want to be able to sell the business any in while in college or after, so what would make me the most valuable? Thanks!
  7. Waterscapes By Design

    Waterscapes By Design LawnSite Member
    Posts: 237

    If you plan on selling within a year or 2 then by all means gather as much as you can...could possibly split the 2 to different buyers and not have to worry about cutting a deal with 1 person....

    I dont remember if you said YOU talked to all the customers or if the guy just said they wouldnt mind...BIG DIFFERENCE.

    Think about your gas consumption when deciding about your deal too, if your gonna be filling your tank 1-2 more times a week that adds up over a month, plus all the extra hours you will be in the truck, dont look at it on a day to day basis only, think about how many extra hours it adds up to a week, then for the month, plus gas.

    Drive the whole route one day factor in traffic and all that good stuff and see if you really want to invest that time.

    You seem to have all the right questions, just sit down and truly think about it, extra customers, everyone has their preference and usually wants something extra....no contracts, plus the end of the season usually means a few of those are gonna try to split...There is a lot to consider here before you make that purchase though.

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