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Discussion in 'General Industry Discussions' started by jflazerz, Mar 29, 2008.
how much would you pay for lawns that bring in $1,740 AMONTH
this would depend on the over head ? is it one or a few lawns . ? do you need this work to keep you afloat? BIG question can you afford to pay for the buy out? i , when i started out would say it is not worth paying for lawns . but been in it for a while and i have changed my mind. it might be worth it to pay a little to increases your profit and work load..
these are residential & comm. lawns , the guy is asking $3,000 for them ,also opportunity for bush trimming & mulch application
I have never paid for lawns. Because joe blow loses his job and Mary so and so wants he nephew to cut it and billy bob is transfering with his job and so on they are not worth buying.
Are you talking about buying signed contracts ?
A few people that I know have sold their jobs. They usually paid a months revenue, paid 1/12th each month. If the customer quits due to no fault of the LCO, no more fee's are paid on that account.
I might give maybe $500 bucks if the lco im buying from signs a clause that he can't solicite any business with the customers for atleast 3 years. The reason is, your not really purchasing a business, almost its like your paying for air to breathe. You aren't guarantied anything. Here is a good story for you. A local LCO offers his whole business to me i.e. contracts mowers trailers etc. I give him an offer for the price of what I think his equipment is worth, he declines, and tries to keep his business going. Over the next couple of weeks about 30% of his business finds out my # and calls me to service them because they said they are not happy with their current LCO. I ended up this year with almost 50% of his business by word of mouth for free, I didn't have to pay him a thing. Funny thing is, when he declined my offer, I offered to take care of his accounts for him while he is going back to school. He declined and said he was going to come down on the weekends to do them, and his service got slack. I am just saying, that just because that lco is mowing them now doesn't mean they will let you mow them after the purchase. I would only count on keeping about 40% of what he is offering. That way you don't lose your a$$ and your thousands of dollars.
He is asking for less than 2 months revenue from them, if you cant keep them happy that long your doing something worng anyway.
Why is he selling? Is it a good reason, will he be in competition with you later?
If not and I can service them without adding overhead that would be wort it.
I would offer him half upfront and half after two or three months, with a discount for any that don't pan out or are way under bid.
If the seller is confident in the account list he shouldn't't balk at this type of deal and you get to pay for half with the income from the accounts you just purchased.