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What is a fair price to buy 40 accounts?

Discussion in 'General Industry Discussions' started by cmos123, Oct 12, 2010.

  1. cmos123

    cmos123 LawnSite Member
    Messages: 77

    Hello, I have the opportunity to buy 40 residential accounts. He charges $25-$30 a yard. What would be a fair price? Thanks.
  2. LibertyFarmLandscaping

    LibertyFarmLandscaping LawnSite Bronze Member
    from NE TX
    Messages: 1,091

    Weekly or bi weekly?

    Extras? Hedge trimming, annuals?

    Size of the yards?
  3. cmos123

    cmos123 LawnSite Member
    Messages: 77

    They are weekly, and from the accounts that I have seen, he runs about 5-10$ less than I would charge. They are average sized yards, nothing special.

    THEGOLDPRO LawnSite Fanatic
    Messages: 5,222

    im always hesitent about buying accounts, unless you talk to each and every customer and they give you the go ahead to continue the work on their yards its a tough thing, also make sure he signs a non compete aggrement
  5. 944own

    944own LawnSite Bronze Member
    Messages: 1,178

    offer 2 weeks worth of cuts whatever that would pay
  6. cpel2004

    cpel2004 LawnSite Bronze Member
    Messages: 1,415

    It should range any where from one month gross or up to 6 months gross. Personally for me it depends on the route density, avg age of accounts and if they are priced correctly. In addition, check with all the customers and make sure there expectations are within reason of the per cut pricing. Make sure the guy isnt alresdy losing the accounts. Good Luck
  7. LawnEnforcement25

    LawnEnforcement25 LawnSite Member
    Messages: 99

    yeah i wouldnt take the reigns until i knew exactly how many would stay once they noticed you taking care of their yards. only then can you put a price on the amount of yards and accounts you are purchasing from him!
  8. cmos123

    cmos123 LawnSite Member
    Messages: 77

    Thanks for the advice, I was thinking that I would pay a percentage of every lawn for a predetermined amount of time. That way if someone did not want me to continue then I do not loose any money, but I am not sure that he will agree with that.
  9. LawnEnforcement25

    LawnEnforcement25 LawnSite Member
    Messages: 99

    sounds like a good idea. it works out for both of you. its worth a shot anyways. seems fair to me.
  10. cut level

    cut level LawnSite Senior Member
    Messages: 295

    Man we have got folks on far opposite ends of the spectrum here!

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