Going rate for snowplow accounts

Discussion in '<a href=http://www.plowsite.com target=_blank ?>Sn' started by Strongmd, Dec 1, 2000.

  1. Strongmd

    Strongmd LawnSite Member
    Messages: 167

    A small local company is selling their plowing route. It consists of 90 residential plow customers. He's had most of them for over 5 years. Is anyone familiar with how much they're worth?
    Forever Green
  2. CT18fireman

    CT18fireman LawnSite Senior Member
    Messages: 611

    I have always been weary of buying routes. Some can be sxpensive and there is no real gurantee that you will keep all the accounts. Also,I would ask to see the accounts and make sure that you can handle them. Find out what the accounts bring in. Will you need to purchase more equipment? These things must be thought of before you spend the money on the route.
  3. John Allin

    John Allin LawnSite Bronze Member
    Messages: 1,488

    We buy plow routes often.

    We pay the equivilant of 2 plowings for the route. 1st payment is due 30 days after the first plowable snowfall. 2nd payment is due 30 days after the second plowable snowfall. This is payable only on those accounts we 1) elect to retain, or 2) that stay with us.

    In a market that gets little snowfall, maybe only pay for one plowable event.

    Might seem cheap... but buying another's route is risky business all around. However, I will say that if you get the right route (with commercial customers), it can pay off big time.

    We often keep the commercial accounts and sell off the residential accounts. Of course, we want the equivilant of 4 plowable events (in a market that gets 25 events regularly). Gotta make money on the resale !!

    [Edited by John Allin on 12-01-2000 at 07:50 PM]
  4. Lazer

    Lazer LawnSite Bronze Member
    Messages: 1,446

    It all depends on HOW CLOSE THEY ARE. And how much they pay.

    They could be worth $15,000 in the right scenario.

    In the wrong scenario, they might not be worth anything.

    What do they pay/year?
    How long does it take?
    How man MILES to drive through the route?
    ~Post an answer to those questions and I'll post a value based on the residential route sales I've been involved with.

    90 driveways? What did the guy do the rest of the night? ;)
  5. Doug406

    Doug406 LawnSite Member
    Messages: 134

    Are contractors coming to you John or do you advertise these buyouts?
  6. John Allin

    John Allin LawnSite Bronze Member
    Messages: 1,488

    No.... they walk in. Word is out that we do this, so we draw them. We get alot of local press because of our size, so most of the small guys know that they can come to us if they're getting out of the biz for some reason. Same with landscape. The deal is different, and we usually buy them to get their people and/or equipment more than their accounts.
  7. Strongmd

    Strongmd LawnSite Member
    Messages: 167

    John, can you give a quick profile of what the snow side of your business is like?
    Matt Strong
  8. BRL

    BRL LawnSite Bronze Member
    Messages: 1,211

    Hmmm.... None of the SIMA Mags I have contain a contractor profile for John's company. In fact I only saw one profile. Maybe there should be a profile in each issue, and maybe we can start with John in the next one? I think I've seen his company profiled in a different mag. but I can't find it right now. Do I remember correctly?
  9. plowking35

    plowking35 LawnSite Bronze Member
    from S.E. CT
    Messages: 1,687

    go to http://www.timesnews.com
    that will bring you to another site, but its basically an Erie newspaper on line. On the left, in the search box, type "allin" and you will read a profile on Allin Co from last sunday.

    PINEISLAND1 LawnSite Member
    from WEST MI
    Messages: 201

    Thanks Dino!

    That is really impressive John. I knew I respected you, just didn't realize how much!!


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