Should I Buy These Customers?

Discussion in 'Lawn Mowing' started by jasonnau, Mar 6, 2005.

  1. jasonnau

    jasonnau LawnSite Senior Member
    Messages: 454

    A good friend of mine runs his own lco, his brother runs about 12 accounts of his own part time. To make a long story short, my friend doesn't want any new customers, his brother wants to sell his and get out of the business. He has had most of them for 3 years or more. He claims they are all primo cuts, averaging between $30 and 50$ / cut. He will introduce me to the customers and let them know that I will be taking over. His customers netted him about $10,000 last year with a slight drought in September and October. A good year could bring in almost 14,000 dollars. There is no agreement, though, and they could leave. Most of these customers are within neighborhoods that I already mow in. Some are a little out of the way. I am a newer company starting out last spring. I have about 30 existing customers. He wants $500.00 for these customers. A one time deal. Any recomendations from you guys as to whether this is a great deal, what I should do, etc. It seems like a no-brainer to me, but I figured I'd ask the question.
  2. Appalachian landscape

    Appalachian landscape LawnSite Senior Member
    Messages: 453

    I would meet the people and see if they would contract with me before I give him the money.
  3. jpp

    jpp LawnSite Silver Member
    Messages: 2,131

    500.00 dollars for 10,000-14,000 dollars worth of business. What a deal. Defintely do a meet and greet with them to introduce yourself. Usually if someone recommends somebody else the customer will go along with it.
  4. bushtrimmer

    bushtrimmer LawnSite Senior Member
    Messages: 351

    I never pre pay for non contracted jobs. I offer between 15 and 20% of 1st years grass cutting revenues, any landscaping or extras is just a bonus for us.
    We pay the % as we bill throughout the year.
  5. jasonnau

    jasonnau LawnSite Senior Member
    Messages: 454

    If I gave 20% of a years revenues, I'd spend at least 2000 dollars to get these accounts. I could spend 500 now and be done with it. Granted, I don't have the security of contracts, but, I don't use contracts with my customers anyway. I haven't lost any customers yet without contracts. Plus, If I want out I can leave a customer. Also, If a customer didn't want me there, I'd rather not be there. Contract or not.
  6. jasonnau

    jasonnau LawnSite Senior Member
    Messages: 454

    I do however, have agreements I have the customers sign which lay out the ground rules for what they can expect, what they will pay, and what I expect.
  7. nriddle77

    nriddle77 LawnSite Senior Member
    Messages: 271

    I would do it for sure. Even if you lose a few, you'll still come out ahead.
  8. a a green

    a a green LawnSite Member
    Messages: 116

    I would do it . I would try to see how the customer feels about me doing the work first, then I would go for it.
  9. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Messages: 8,745

    I would tell him, I will pay you $250 now, and then $250 after you take me around to meet all of the customers
  10. j fisher

    j fisher LawnSite Senior Member
    Messages: 294

    1 $50.00 account x 26 cuts is $1300.00

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