PaulJ
LawnSite Bronze Member
- Location
- Columbus, NE
I got a call from another solo operator the other day. He wants out. Mainly because he's going through a divorce and can't live off his wifes income for the winter.
I know this subject is a dead horse that has beaten over and over. but after an extensive search I guess I'd just like some more opinions.
He has some nice equipment but nothing I need and not what I would buy.
So what I am looking at is about 40 accounts grossing grossing $2500-$3000 per month. Most have been with him at least two years. He is willing to do an introduction letter and maybe a personal intro. The accounts are priced in the $20-$30 per cut range with some $15 ones That he said are expecting increases. I haven't seen them but I think they are all under 10k sqft with many under 5k.
He wasn't really sure what he wanted for it but was throwing %20 of a years gross around. after reading here i'm thinking that %15 might be an ok offer and spit it up with part up front and the balance after the first full month of cut (may) based on the ones that actually signed with me for the full season.
He has a few fert accounts also but they are way under priced for me.
My problems are:
1- I think these are all on the small side of what I do. Some have to be done with a 21" which I have been trying to get away from.
2- I don't think that I can handle my current work load plus 40 more mowing by myself. And I really didn't want to add employees .
The up side would be:
1- These seem to be pretty good loyal accounts, priced right around where I would price them.
2- I have been wanting to add to my mowing list but have had almost no luck with advertising. Ivv'e been stuck between 25 and 30 accounts for 3 yrs now. picking up just enough each year to replace the ones that have moved or passed away.
If I look at the accounts and they fit my operation and are priced ok, and if I can justify adding an employee at least part time, and if he would take %15 of gross based on the accounts that sign up with me for next season.
Should I?
I think the idea of adding an employee is my biggest objection. with just me I can keep it simple and have no strings on through the day. And that's IF I can even find someone trainable and willing to work.
.
Thanks in advance for your input.
I know this subject is a dead horse that has beaten over and over. but after an extensive search I guess I'd just like some more opinions.
He has some nice equipment but nothing I need and not what I would buy.
So what I am looking at is about 40 accounts grossing grossing $2500-$3000 per month. Most have been with him at least two years. He is willing to do an introduction letter and maybe a personal intro. The accounts are priced in the $20-$30 per cut range with some $15 ones That he said are expecting increases. I haven't seen them but I think they are all under 10k sqft with many under 5k.
He wasn't really sure what he wanted for it but was throwing %20 of a years gross around. after reading here i'm thinking that %15 might be an ok offer and spit it up with part up front and the balance after the first full month of cut (may) based on the ones that actually signed with me for the full season.
He has a few fert accounts also but they are way under priced for me.
My problems are:
1- I think these are all on the small side of what I do. Some have to be done with a 21" which I have been trying to get away from.
2- I don't think that I can handle my current work load plus 40 more mowing by myself. And I really didn't want to add employees .
The up side would be:
1- These seem to be pretty good loyal accounts, priced right around where I would price them.
2- I have been wanting to add to my mowing list but have had almost no luck with advertising. Ivv'e been stuck between 25 and 30 accounts for 3 yrs now. picking up just enough each year to replace the ones that have moved or passed away.
If I look at the accounts and they fit my operation and are priced ok, and if I can justify adding an employee at least part time, and if he would take %15 of gross based on the accounts that sign up with me for next season.
Should I?
I think the idea of adding an employee is my biggest objection. with just me I can keep it simple and have no strings on through the day. And that's IF I can even find someone trainable and willing to work.
.
Thanks in advance for your input.