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Accounts 4 Sale

Discussion in 'Lawn Mowing' started by LAWNGODFATHER, Jan 27, 2002.

  1. Got a phone call Saturday morning, guy called and said they have garuntee 50+ accounts for sale up to the 117 that was the customer base as of last season.

    They financed thier son-n-law to get in the lawn biz 3 years ago, and he does not want to do it anymore, so they are selling every thing.

    $12,500 for the equip, but I don't need or want it.

    The accounts I told them I would buy them if I can pay them for the ones that stay. 3 cuts total, spread accross 3 billing cycles.

    My problem is they have 25 or so in the area I cut back to and work in, nor have never done any out in the area they have accounts in.

    I was planning on expanding out in this area, but not so soon.

    I drove by and looked at most of the account with him between yesterday and today.

    Looked at the numbers and also noticed lots of the add ons that could be done, most get the add ons from another LCO or TGCL.

    They seem to look like well paying client.

    I also will have to look at the tax returns, but if the match it could be a good thing.

    So would you expand eirlier than anisipated or what?

    BTW he will go with my payment plan for the payment for the accounts, sign non-compete contract, and all contracts involved.
  2. King City Lawns

    King City Lawns LawnSite Member
    Messages: 43

    I say if you have the time in your week to take on the extra work go for it.. He is willing to only make you pay for accounts you retain?? Sounds ok to me.... Good luck.
  3. Guardian

    Guardian LawnSite Senior Member
    from Florida
    Messages: 269

    Are your current crews maxed out? If your only upfront investment is buying the accts, then I'm not sure why you wouldn't want this.

    Even if these accts are all by themselves in a remote area, this now becomes your anchor out there. I know for me, I don't bid in areas like that until I get an anchor. ( recently we expanded due to the addition of 4 common area accts in that area ) Previously, if someone called from there, we told them we don't service that area at this time.

    Whe you say 3 cuts ...are you talking about 3 mo's of cutting or 3 visits? ( $50 cust = $150 ?)
  4. 3 cutting visits, paid once a month after received payment from customer.

    Some or the remote area is 30 miles out, but more than a half day there and could work our way back.

    BTW mowing crews are not maxed out, and could sub out some, but don't know anyone in thet aera.

    Like Guardian said, I'm not in that area, if i would get a call for one I turn them down, now I would be able to say "YES".
  5. Evan528

    Evan528 LawnSite Silver Member
    Messages: 2,144

    Mike, im confused. I thought you told us that last year you had about 500 accounts (400(?) subbed out). When I was in Mo you told me you just gave all the subbed out accounts away to the subs because you didnt want to be bothered with them and wanted to down size. Why do you want to get right back where you were?
  6. Even there was no more money I could get out of those accounts.

    Single houses load back up drive 1/2 mile or so and do the next one.

    All they wanted was grass cut, and they had crappy lawns.

    Some were big complainers or had TGCL over nitro their lawns. They were little under bid. and contsantly complained about money, any increase in prices and were slow payers.

    So my redirection of my biz went to more to the apps side. But I will still mow. Try new clients to get OTHER services out of them.

    I guess if it doesn't pan out I could sell them again.
  7. bruces

    bruces LawnSite Senior Member
    Messages: 648

    If your present operation can handle the work, I don't see how you could go wrong.

    I'm trying to get started and I would take all of the decent paying accounts I could get for 3 cuts payment.

    That is probably cheaper than getting them through advertising.

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