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paying for new accounts? sharing?

Discussion in 'Starting a Lawn Care Business' started by blueturtle241, Jan 5, 2010.

  1. blueturtle241

    blueturtle241 LawnSite Member
    Messages: 11

    I have an opportunity to buy 19 accounts, seller asking 5k no contracts, says he just doesnt have the time anymore... i wouldn't pay that but just want some advice... I currently only have 15 accounts which were enough as I was doing it part time. The new accounts are bunched out about 40-45min from my current route, so going solo that is going to need 2 trips out there and back.

    I had a thought that would work for me and probably the seller, i have not brought this up to him, however. No one wants to give up there lawn accounts, the money is pretty nice if your overhead is low, so I was thinking of splitting those 19 accounts between us, He knows the customers, and they know him (7-10yrs i believe he said)... i bring to the table my equip. 62"Lazer 48"Ferris and my experience, among other stuff, I only have to make one trip out, we split the dough 50/50 he has more time to work on his home/family whatever, but has some extra cash...

    Pros? Cons? Just a thought really... I just don't want to drive out there twice and am planning on returning to school for another worthless degree it seems... thanks for the advice.
  2. tinman

    tinman LawnSite Bronze Member
    from ga
    Messages: 1,346

    Offer and see he might take it or just buy the ones you want
  3. lawnkingforever

    lawnkingforever LawnSite Bronze Member
    Messages: 1,280

    45 minutes off route seems far, unless you are making real good money. In theory it may seem like you will only need to only make one trip a week. What about a rain out or if somebody wants an extra cut in the springtime. That means a second trip which = 3hrs of drive time = profit killer.
  4. Grass Shark

    Grass Shark LawnSite Senior Member
    from Zone 7
    Messages: 660

    No contract they are worth $100.00 a piece if you are introduced to the customers. How much advertising can you do for $5000? Billboard for 4-6 months or huge newspaper ads or MASSIVE mailer. Thats IMO
  5. bohiaa

    bohiaa LawnSite Fanatic
    Messages: 5,220

    If this man truly doesn't have time. then let it go by...
    when the season starts these people will need a lawn service. simply go get them.
    and on top of that it will be free...
  6. AzLawnMan

    AzLawnMan LawnSite Senior Member
    Messages: 409

    I agree. Unless he's willing to make some sacrifices and work with you, it is he who is looking to sell, then why make such a big investment? Customers in general, commercial or residential arent worth what people make them out to be. Commercial is usually only a 30 day contract, and most residentials are not even under contract. In this economy, a 45 minute drive is worth the money for a full days work. I would go about giving him a small percentage down and let him know that in 90-120 days if those customers are still with you then you will pay the rest. This way, they dont bail after you just paid alot of money, he has a vested interest in making sure they stick with you, and you can pay him with his own money. Of course all in writing, no hand shake deals. IMHO
  7. jc1

    jc1 LawnSite Silver Member
    Messages: 2,123

    I had a similar opportunity last spring. I had him contact all customers so that they all were aware of a change. All of his customers that were agreeable signed an estimate of the services that we were to perform. we paid him 100 per customer when he presented us with the estimates. We then met each customer for a get to know you meeting. In July we paid him another 100 for each customer that we retained. Bottom line was we paid$3000 and pulled in over 30k from it. The way things are right now i don't believe 3k in advertising would generate 30k in revenue in my part of Nj. I think it is worth persuing.

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