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Anyone every bought/sold client info./contracts?

Discussion in 'Lawn Mowing' started by slimart01, Feb 18, 2008.

  1. slimart01

    slimart01 LawnSite Member
    Messages: 95

    Client info meaning names, address, services used, etc.
    and contracts.

    I came across a guy who is selling off his company after 14 years. Trucks, trailers, mowers, sprayer/tank, 26" Lesco aerator (which I am getting for $450) and more importantly his clients. We are going to talk more tomorrow about conditions and what not.

    I was hoping that there were some of you out there who have had this kind of experience and could help me out. What should I expect to pay/offer to pay for a given client? 10% of what his company made off of that customer per year or what? Any input would be helpful?

    I'm trying to look at this as an opportunity. Wasn't expecting to spend all of my marketing budget on one area but the rate of return would be darn near 100%.
  2. Weekes

    Weekes LawnSite Member
    Messages: 107

    I have done that. Bought them that is at 10% for the year. Ended up an OK deal, not great. Just be sure of a few things and here is were is gets tricky.

    1. He's a good honest guy and his clients actually liked him.

    2. You know you are gonna get them --- some and many might drop you before things get going. I agreed to only keep and pay for those that made it on my schedule and stayed there.

    3. They are good paying clients.

    There is probably more, but just some things to think about. It can be a great kick start but be careful it can also kick you in the face.

    Just make sure you double check things and contracts.
  3. greenbaylawns

    greenbaylawns LawnSite Senior Member
    Messages: 563

    Having a flash back. We did this in 2001. It was our 2nd year in business and found a kid who had a lesco 36 wb, 4x8 trailer, lesco blower, lesco trimmer, lesco spreader, power rake, 2 ryan aerators, tanaka edger, 5 mowing customers, (still have 2) and 18 fertilizing accounts ( still have 10). $5000
    It was tricky not knowing how the outcome was going to be. Today I'm glad we did it. We've also bought mowing accounts from a guy by mowing every week and when the third week came up he would get that weeks pay and so forth for one season. After one season the accounts were all ours. I don't know if this answered your question but that's what we've done
  4. slimart01

    slimart01 LawnSite Member
    Messages: 95

    I definitely think I should service the properties a few times before I pay or atleast before I pay in full.

    He seems very honest. 14 years of buiness says a lot this day in age. I see his trucks out all the time, each with at least 3 workers, so he has to be managing at least some large properties. I'm hoping to get a handful of properties. 2 or 3 handfuls would be nice. haha.
  5. BeautifulBlooms

    BeautifulBlooms LawnSite Senior Member
    Messages: 613

    Dont pay for any customer unless they have signed onto your service, there is no guaranteee anyone will stay with you just because you bought the other business. I would say a small finders fee for each account based on the signed contract for the year.
  6. LawnGuy73

    LawnGuy73 LawnSite Bronze Member
    Messages: 1,946

    I bought a couple of contacts about a year ago. I paid one (1) months worth of lawn services. So if its a $50.00 per cut lawn, I gave $200.00 for that customer.

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