Selling Mowing Jobs

Discussion in 'Starting a Lawn Care Business' started by LawnAndTurf, Jan 21, 2018.

  1. LawnAndTurf

    LawnAndTurf LawnSite Member
    Messages: 17

    The title says it all, how do you go about maneuvering this aspect of the industry?
     
  2. JLSLLC

    JLSLLC LawnSite Fanatic
    Messages: 8,569

    Welcome, type some of your questions into the search function. Good luck
     
    Ma&Pa likes this.
  3. Greencuts518

    Greencuts518 LawnSite Member
    Messages: 215

    I noticed when I search google about lawn care lawnsite comes up most of the time offering plenty of good information...this site rocks:dancing:
     
  4. Bunton Guy

    Bunton Guy LawnSite Bronze Member
    Messages: 1,944

    Lawn mowing accounts have generally very little value. Accounts can come and go as they please with little guarantee of future existence. Even a fairly young company with 300 mowing accounts is worth very little as an unknown amount of clients won't transfer when the new owner takes ownership. Then shortly after the transition there will be a second wave of clients that will leave for many reasons.

    More or less just my opinion is that mowing accounts are more valuable to the new owner then the past owner. How much is the prospective buyer willing to pay?

    I've bought mowing accounts on 4 occasions and although I have extreme confidence that we provide better services to the new clients then the last owner, we still lost a considerable amount of clients. And still to this day I'm amazed that we lost several clients because of how organized we are. Some clients were uncomfortable with our level of organization and told us they felt like they were dealing with a large national company when we are just a small town service provider.
     
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  5. Greencuts518

    Greencuts518 LawnSite Member
    Messages: 215

    Yeah I was approached to buy a laundry delivery service for $45,000 10 years ago with 200 customers which the numbers added up but I declined because I told my wife their was no guarantee customer contracts were gonna stay more then the one year contract they were locked into. I felt like I may be paying $45000 for some used laundry bags....ten years later he only has 30 customers and talks about giving me the business when he retires.
     
    Last edited: Jan 21, 2018
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  6. Bunton Guy

    Bunton Guy LawnSite Bronze Member
    Messages: 1,944

    Good example Greencuts518.
    Sadly most businesses for sale to me only have a "phantom value"
    Maybe a landscape/hardscape company that is for sale who has a 1 year backlog with deposit/downpayments on all work to be completed has some sort of value.

    I've been approached by several companies to buy them out for 200,300 & 400K dollars. Most had several hundred clients on maintenance contracts with long standing history. The only thing that made $$ sense to me was the actual value of equipment and real estate that came with the sale. Those items had a tangible value to me. When considering buying those companies I was looking at it as I was actually "buying income" and that in the first year I could expect to loose 1\8 of the clients and by the second year another 1\8. After that would I be able to pay myself back on the investment?
     
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  7. LawnAndTurf

    LawnAndTurf LawnSite Member
    Messages: 17

    where are you guys getting these offers from? they just don't land on your front doorstep.
     
  8. Greencuts518

    Greencuts518 LawnSite Member
    Messages: 215

    The business owner now subs out the delivery to me for a weekly flat rate as he is in Florida for the winter so it's easy extra $$$ and possibly I get the business some day...I'm happy either way with low expectations but if it pans out great if not no worries
     
  9. Bunton Guy

    Bunton Guy LawnSite Bronze Member
    Messages: 1,944

    I know people that know people that have friends with important people lol.

    I've got another landscape install hardscape company who wants to sell and get into building homes. Ill turn down that deal as well as I don't like install and hardscape work, just doesn't fit our long term goals. If you don't keep your eyes and ears open at all times deals will fly past you.

    Do you know a lot of other companies? I've got roughly 20 other companies that we are on a first name basis and we chat every chance we get. Word gets around between us who is looking to get out etc...
     
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