Potential To Purchase Business

2191 Views 117 Replies 28 Participants Last post by Toro44, 20 h ago

PearlWhiteGT

Discussion Starter · 8 d ago

3

My buddy called me and told me his yard guy is retiring and moving. Said he’s going to sell his equipment and potential to take over his contracts. Has about 50 clients that he takes care of. His equipment is less than 3 years old. 52” ZTR has less than 50 hours and the 32” has 75 hours. All service has been done on the equipment at the local dealer where he bought the equipment and trailer which is a 6x12.

He hasn’t put it for sale or told anyone else about it yet so told me to think about and let home know. He didn’t give a price yet either. Majority of his work are residentials with only a couple of larger properties. His residentials are about $40-$50 range but always gets a tip.

What do you guys think would be a good offer to take everything off his hands?

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Youngandfree

· #101 · 3 d ago

PearlWhiteGT said:
Thanks, had one of his customers (older couple) who he told me calls when the grass is usually high message me asking how much go mow their yard. Drove by and yup grass is high. He was only charging them $30, I told them $45 and haven’t heard back since. No biggie to me.

Here's a another feather for your cap. If it's overgrown more than what it would be for 2 weeks of growth, the first cut is even higher. When someone calls me weeks after the season started, I always ask when was the last time it was cut. Sometimes I'll charge double my mowing price for the first cut. I had a lady call and said her yard hadn't been mowed yet, but I was on week 7. Which means my EOW customers had already been done 3 times. So I figure how much they haven't paid for that yard yet on an EOW rate. I quoted her $200 for the first cut. She declined.

I also ask, do you want to get on a schedule or a one time cut. One time cuts get a little premium added too. I had a lady that her yard got away from her, and she couldn't get it cut with her push mower. So I did a one time cut to get it neat again. I told her as long as she runs the push mower once a week she'll never have issues. I also told her to call me in the winter to get her leaves up since there is a ton of leaves that fall in her yard.

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JFGLN

· #102 · 3 d ago

I hope it works out. The equipment has to be worth $4k.

It would have been better to “work” for him one day to get a feel for these accounts.

I think it’s cool you are continuing to post. You can make a living mowing. I have been for 32 years now.

Reactions: 4

GRANTSKI

· #103 · 2 d ago

Rick1111 said:
Well the “clients” are worth nothing they are a dime a dozen so focus on the machinery.!

Not in my area. Very slow going building a mowing route. Population 10,000 ppl or so. Either way imo the only fair way to purchase accounts is something like pay the previous owner a % of gross income from those accounts after 3 months.

Reactions: 2

PearlWhiteGT

Discussion Starter · #104 · 2 d ago

JFGLN said:
I hope it works out. The equipment has to be worth $4k.

It would have been better to “work” for him one day to get a feel for these accounts.

I think it’s cool you are continuing to post. You can make a living mowing. I have been for 32 years now.

$4K only? In my area the Worldlawn 52" and 32" ZTR, Stihl FS 91R, Stihl FS 111RX, Echo PB 225LN, Echo PB 2620 and 6x12 trailer is worth much more than that.

I agree it would had been a good idea to get a feel of the accounts but I'm only interested in the ones that make sense for me. Not trying to take on all his clients, especially the ones he hasn't raised the prices on since he started.

I love this forum, tons of great advice and knowledge. I have no problem posting and asking questions and not scared to let you guys know if I fail at it or just wasn't for me. If it turns out a failure maybe it will teach someone else not to make my mistake.

Reactions: 3

Mark Oomkes

· #105 · 2 d ago

PearlWhiteGT said:
$4K only? In my area the Worldlawn 52" and 32" ZTR, Stihl FS 91R, Stihl FS 111RX, Echo PB 225LN, Echo PB 2620 and 6x12 trailer is worth much more than that.

I was thinking that was high, because up until you posted the pics I had never heard of them.

Jashley73

· #106 · 2 d ago

PearlWhiteGT said:
Not trying to take on all his clients, especially the ones he hasn't raised the prices on since he started.

Just food for thought. I was given a handful of accounts from another LCO, who himself was given these accounts from a friend who quit mowing. All except one tiny commercial lot, were WAYYYY below market pricing.

I finished the season, but in hindsight, I should have sent each a letter, and done a mid-season price increase 1 month after that. Now, all of those accounts have been raised by around 40%. And there's probably room for more while still being within what the market can bear.

Add to that, you'll get organic growth as well. 2 of those accounts were in a cul-du-sac. Now I have 5 there.

You might not "lose" much if you take the accounts, and send them a 1-month notice letter of a <substantial> price increase. You might be surprised at how many hang around. And it will automatically cut off the cheapskates you might not otherwise want to keep, anyway...

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JFGLN

· #107 · 2 d ago

PearlWhiteGT said:
$4K only? In my area the Worldlawn 52" and 32" ZTR, Stihl FS 91R, Stihl FS 111RX, Echo PB 225LN, Echo PB 2620 and 6x12 trailer is worth much more than that.

I agree it would had been a good idea to get a feel of the accounts but I'm only interested in the ones that make sense for me. Not trying to take on all his clients, especially the ones he hasn't raised the prices on since he started.

I love this forum, tons of great advice and knowledge. I have no problem posting and asking questions and not scared to let you guys know if I fail at it or just wasn't for me. If it turns out a failure maybe it will teach someone else not to make my mistake.

I was just saying at the very minimum the equipment is worth $4k.

Reactions: 1

Toro44

· #108 · 2 d ago

You’re in a weird spot at this point. Clearly a bunch of the handoff was done poorly at best. The previous guy clearly didn’t run this mowing operation like any business would, and Sounds like a retirement hobby to get out of the house. Since you’ve never done any commercial mowing the pitfalls and obstacles weren’t obvious. With that being said, if I were in your shoes I’d be calling all the customers you would like to keep from this route with your price and terms of service. If you wait they are all going to be overgrown and a mess creating more work. Let’s say 10 like what you have to say. Then at least you’re focusing on the ones you’ll be continuing with and not chasing around all over the place for nothing. You don’t owe these people anything. The previous owner quit mid season and you’re offering your services.

Reactions: 4

Front2Backlawncare

· #109 · 2 d ago

are you looking to sell your business?

[email protected]

· #110 · 2 d ago

Toro44 said:
You’re in a weird spot at this point. Clearly a bunch of the handoff was done poorly at best. The previous guy clearly didn’t run this mowing operation like any business would, and Sounds like a retirement hobby to get out of the house. Since you’ve never done any commercial mowing the pitfalls and obstacles weren’t obvious. With that being said, if I were in your shoes I’d be calling all the customers you would like to keep from this route with your price and terms of service. If you wait they are all going to be overgrown and a mess creating more work. Let’s say 10 like what you have to say. Then at least you’re focusing on the ones you’ll be continuing with and not chasing around all over the place for nothing. You don’t owe these people anything. The previous owner quit mid season and you’re offering your services.

Well put! Use your time on the good ones ( or potential good ones).

I like @Toro44 comment, you don’t owe these folks anything.

this is the true conumdrum of this industry. Low priced clients who are now faced with the reality that their good deal came to an end. This also falls on line with the often stated” I want to be fair to my customers”. BS be fair to yourself, you’re doing the work. Keep us posted, I’m hoping you can make a silk purse out of the sows ear that this guy created with his own lack of business savvy.

Reactions: 2

PearlWhiteGT

Discussion Starter · #111 · 2 d ago

Front2Backlawncare said:
are you looking to sell your business?

Nope.

[email protected]

· #112 · 2 d ago

And yes, please keep us updated about the good bad and ugly.

I admire your candor on if it doesn’t make it, say it didn’t. And the part about a potential lesson learned for others, terrific. I’m hoping you knock it out of the park.

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wmitchell

· #113 · 2 d ago

I hope you have been running the new mower on your property to learn how to use them. Start using Yardbook NOW along with simple accounting sys. Let's hope your wife can help with this. Mkae sure that you have every cust. phone # email and address, and current price. You mentioned raising a certain property, you ahve not even mowed the property yet. After you get better with equip. start timing each property. Mow, edge, blow times and keep this important info. As a prior posted said control how you get paid, the more options you give them the harder it is for you.

Reactions: 4

PearlWhiteGT

Discussion Starter · #114 · 2 d ago

[email protected] said:
And yes, please keep us updated about the good bad and ugly.

I admire your candor on if it doesn’t make it, say it didn’t. And the part about a potential lesson learned for others, terrific. I’m hoping you knock it out of the park.

For sure man, I'm not the type to let anyone know I failed at it. I've failed at many things and will continue to. I work a full time job and make pretty decent money so any money made on mowing is just extra money for my family and I. Gives me the flexibility to pick and choose which properties I want to do. I won't take on any of his lawns for less than $45.

Something I have been considering is targeting the areas near me with the 1/2 acre lots and up. Those jobs are paying $100 and up EOW right now. My buddies dad in one of those properties on 1 acre pays $150. Might make some door hangers or yard signs to place in the subdivisions to advertise.

As far as the equipment I have 4 guys who want to buy the 32" ZTR for more than half of what I paid for the whole set up. But not ready to stop trying yet.

Reactions: 2

[email protected]

· #115 · 2 d ago

Good plans. Used equipment is at a premium, and although yours may not be considered mainstream, it’s still new and low hours and simple, so you’ve got something another new guy in similar situation may have an interest.

pricing? You only miss the shots you don’t take. Go for it!

Reactions: 3

wmitchell

· #116 · 2 d ago

"Not ready to stop trying yet" You haven't started trying yet! YOU HAVE MOWED 3YARDS! Don't even think about bidding bigger properties yet. At this point you have no idea how to be fast mowing, trimming, etc. and for sure you have no idea how to price a property! Talking about selling the 32" stand on, don't even think about i yet. You need to focus! Watch YouTube video Florida Turf Pros, posted about 3 years ago " Mow Faster" His content is great. He has another one on how to edge, where to start on a property, etc. Here is another of his videos, " rookie Lawn business mistakes" posted about 2 years ago. This is important for you to learn and fast!

Reactions: 5

PearlWhiteGT

Discussion Starter · #117 · 20 h ago

Got some practice time with the 32 on my own lawn. Not as easy as a sit down ZTR. Messed up some areas of the grass. Good thing my grass ain’t real nice to start with. Gonna take a lot more practice.

Toro44

· #118 · 20 h ago

Standers are a bit tricky at first, far more responsive than a sit down ztr.

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