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Purchasing Clients

Discussion in 'Starting a Lawn Care Business' started by emiliovaz, Sep 21, 2009.

  1. emiliovaz

    emiliovaz LawnSite Member
    Messages: 3

    I just started the lawn business and have about 10 clients currently. I am interested in purchasing clients from other landscape companies. Oh and I do this as a part time business. My brother runs the business for me with one helper.

    I have found a guy that is selling 28 clients (residential and commercial) they are close to my house. He is selling due to long commute and getting out of the maintenance of lawns and into landscaping.

    He is making about 2500 to 3K a month on all the properties. He is asking for 4k for all the clients. Do you think I should buy?

    I have trailer, 32" walk behind Exmark, 22" Toro, 2 echo's weedeaters and one backpack echo blower.
  2. emiliovaz

    emiliovaz LawnSite Member
    Messages: 3

    Thanks for your help on this.
  3. baddboygeorge

    baddboygeorge LawnSite Bronze Member
    Messages: 1,249

    Any guarantee the customer will stay with you? Purchasing customers is risky!Watch what your getting into!
  4. emiliovaz

    emiliovaz LawnSite Member
    Messages: 3

    I dont think so, but he say's he has been cutting them over the past two years. He is telling the clients that a friend is taking over his route, so that I dont loose them.
  5. baddboygeorge

    baddboygeorge LawnSite Bronze Member
    Messages: 1,249

    The only way I would do that is if I had contracts in writing with a 2 year gurantee from each customer on a legal contract.What happens if ya buy it for 4 grand an next week they all cancel the service? I would also want a no compete signed by the seller for the 2 year period . I have seen guys buy customers an get a royal screwing . I would also have a lawyer look over the contracts in full .
  6. RigglePLC

    RigglePLC LawnSite Fanatic
    Messages: 13,573

    Emilio, the going rate for lawn mowing customers is about 1 to 2 months revenue. It should work. But do whatever you can to make sure the customers stay with you after the transition. Offer a special deal or some kind of incentive. Free week after four paid weeks --some kind of freebie to get them to stay. By all means examine his business carefully. By all means be sure to do a really good job. By all means be sure you understand all the little special little things he did for his customers. Be ready to take care of them better than he did. Let us know how it works out.
  7. SangerLawn

    SangerLawn LawnSite Senior Member
    from indiana
    Messages: 736

    Make sure to have him sign a contract that he will stop all work in your area…otherwise you will pay him then he will come back and take your customers

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