PROS I need your help about this CONTRACT

Discussion in 'Starting a Lawn Care Business' started by JaysLawns, Dec 4, 2007.

  1. JaysLawns

    JaysLawns LawnSite Member
    Messages: 202

    Ok I have an opportunity to take over this guys contract for this neighborhood. It has 34 residential accounts all side by side and the contract is only guaranteed till Jan 09. It consists of mowing, 5 step fert program and snow removal. He said it takes 3 guys about 7-9 hours in one day. Most yards are decent size but some dont even have backyards. The contract generates right at $37k a year and he is asking $15k what do you guys think? Thanks to all that reply.

  2. JaysLawns

    JaysLawns LawnSite Member
    Messages: 202

    Also he said as long as you do a good job they will extend the contract for at least 2-3 year more years.

  3. P.Services

    P.Services LawnSite Fanatic
    Messages: 6,319

    no way. 15k of ads will pull in wayyyy more work than that.
  4. topsites

    topsites LawnSite Fanatic
    Messages: 21,653

    Yeah, that price is way out there.
  5. supercuts

    supercuts LawnSite Silver Member
    Messages: 2,814

    i would never invest $15k for ads anyhow. nor would i pay much more than $50 lawn if were to ever pay for lawns. and how is he guaranteeing them?? would you be holding money in escarole?
  6. bohiaa

    bohiaa LawnSite Fanatic
    Messages: 5,220

    there's simply not enoulf info here to make the call,

    to be honest If you could get them for that it would show a return in about 6 months,

    that's NOT bad, this is like a total start up with no risk other than the usual custimer issues, taking over sometimes you will have to expect to loose a few.

    let us know what you decited
  7. Herrick

    Herrick LawnSite Senior Member
    Messages: 506

    Not entirely true... you're not taking into account all his operating costs. Personally I don't think I'd ever buy accounts... there is really no way someone can garuntee that the account will stay with you. There's more than enough work out there, you just have to do the legwork to go find it and get it!
  8. bohiaa

    bohiaa LawnSite Fanatic
    Messages: 5,220

    YES but if your gonna Quote me..... Please quote the full statement.

    As I said you may loose a few.

    this Business is VERY unlike any other where you can turn a profit from day 1

    Investing into a company, where you would have your investment back with in 6 to 9 months is simply unherd of.

    that's why its more of a smart investment.

    However like others, in this business, It's simply to easy and Cheep to get and keep customers, that's why I would never do it.

    I happen to be one of the lucky ones, where I can sell my self and services easily, it don't come that easy to others.

    If your the type that's NOT a people person, you kind of have 2 options.

    Hire a front man, or purchase accounts.

    You know what type of person you are, there for this post is difficult for anyone to give you solid advice...

    I had much rather be mowing, What I like to do, than taking care of the daily grind of paperwork, talking to customers, scheduling. and such.

    However I cant find anyone who can do it as well as I can.
    So I dont get to mow anymore...

    These are some of the Q's you will have to ask yourself.

    and remember advertisement can be very expensive

    As stated earlyer... Keep us posted on your decisions.

    And Good luck
  9. grassnazi1

    grassnazi1 LawnSite Member
    Messages: 73

    Attn Bohiaa, I take it you approach your customers face to face and NOT with something in writing? Spell checker my friend! Ok I got it out and feel better!

    as far as buying accounts... So NOT worth it.... It may look good, but 15k is a ton of cash, guess it depends on how lazy you want to be?

    I would invest a fraction of that 15k into some well placed advertising and foot work and then sit back and let the other 10k collect interest or use it for other things with the business.

    Basically, my whole point is 15k is a LOT of money for something thats not guaranteed. What if they don't like the way you do it and drop you. Or better yet, hate you and keep you locked into the agreement and the guy lied and under bid and now the customer is a total ass and makes your life a living hell everyday so you drop them? Back to sqaure one without 15k in your pocket. Not worth the investment.
  10. bohiaa

    bohiaa LawnSite Fanatic
    Messages: 5,220

    True there are many varables involved,

    And with invertments, and Business deals it's always risky.

    15K is NOT a lot of money. sorry it's Just not.

    Reminds me of Nasbisco, YOu will have to do your own research on that one.

    Basicly everyone thought it was a solid Co. Many people invested VERY heavy into the Co, millions. it was a safe investment by all accounts.

    However in the 80's they were bought and sold over night, People woke up to find they were Broke, YES MILLIONS. were lost, 401's and everything.

    However with my earlyer statements, I informed the poster that he has to figure it out for himself, I used the exzample of a front man,

    that's totly up to him.
    Personaly buying accounts is NOT for me, I'm a people person and have no problem talking to customers, and spending money on advertisements to get the customer.

    However, With in doing my research, I wont tell you how much I spent, But it was a tidy sum, and of corse my advertisements ARE tax ductable

    As so would his purchasing accounts.

    Again there are too many Varables to inform someone to buy accounts,
    We simply dont have enoulf info.

    I try to reframe from giving any Advice on investing, But I will try to point out the pro's and cons

    But to be honest If I were to invest 15k and my return would be 30K with in about 1 year..... That's a dream come true.

    I mean hell that's about what a truck would cost.

    Again NOt a lot of money.

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