Good price???

Discussion in 'Lawn Mowing' started by christmas79, Jan 18, 2007.

  1. christmas79

    christmas79 LawnSite Member
    Messages: 208

    50 grass accounts all in the same town for $10,000 includes 36" Scag and a small trailer gross about $30,000 good price?
  2. Uranus

    Uranus LawnSite Bronze Member
    from Mass
    Messages: 1,624

    Is $30,000 just for the mowing of the 50 accounts?
    Do you get side work off these accounts? Like mulch and bush trimming.
    $30,000 divided by 50 accounts = $600 a year per account for mowing only
    $600 divided by say 27 mowings per year =$22.22 per cut.
    You happy with that?
    I wouldn't even consider it.
    I make 3 times that amount per year cutting with less accounts.
  3. Mowgli

    Mowgli LawnSite Member
    Messages: 183

    Well said. And run, don't walk!
  4. KrayzKajun

    KrayzKajun LawnSite Fanatic
    Messages: 10,737

    I agree!!! RUN AWAY AS FAST AS YOU CAN!!!!
  5. sikagrass

    sikagrass LawnSite Member
    Messages: 238

    You dont have to just say no to the guy,just give him a more realistic offer. The scag and the trailer are worth something,but how much are you willing to pay for an account that may not stay with you or be mispriced?I wouldnt think that they would be worth more than a months service give or take, and the mower and trailer could be had anywhere but surely have some value.Maybe a counter offer of 5000 and he has to introduce you to his customers? Also look at his books and make sure he had the income he says.My advice is worth what you paid for it.
  6. christmas79

    christmas79 LawnSite Member
    Messages: 208

    Thanks for you help1
  7. Richard Martin

    Richard Martin LawnSite Fanatic
    Messages: 14,699

    When I sold my company in MD this past spring I split it up into 2 parts and 1 guy got a half and another guy got the other half. They didn't owe me a dime until the second week of October (the end of mowing season). Then all they owed me for was the customers that they still had at that time. Of the 30 customers we only lost 1 due to dissatisfaction. A couple of customers moved away also but all in all we retained a huge majority of the customers. I was always available to both the new LCOs and the customers and even called the customers halfway through the season to make sure they were happy. I took the new guys around to each customer and introduced them and everything went fine.

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