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what should i do?

Discussion in 'Lawn Mowing' started by lonnie13, Aug 19, 2002.

  1. lonnie13

    lonnie13 LawnSite Member
    Messages: 41

    I am a firefighter and on my days off I mow 14 yards ($25-$30). A fellow firefighter is selling his lawn service. He has 22 lawns, all pretty small. 36" Yazoo-Kees walk behind, not sure if it is belt or hydro. 14 ft open trailor, stihl blower, echo edger, homelite trimmer. He is asking $5000, is this a good price, it seems a little high to me seeing how mowing season is slowing How is this yazoo. Also he said he grosses $2200 per month and his customers would stay with me. I appreciate your advice
  2. KLMlawn

    KLMlawn LawnSite Senior Member
    Messages: 443

    I recently asked a similar question as to the price of accounts, and if you do a search, you will find many threads on this topic.
    But to put it in a nutshell, used equipment should be at fair market value for used equipment if it is good condition, and the accounts - well that depends on a few things ...

    Are they priced fairly ? = will you make money for the time they will take.
    Are they in your current service area ? = not driving across hells half acre to get to each of them.
    Are there any assurances that the customers will stay with you after the change? = are they on contracts and going to like you and your work enough to stay.

    If you can answer YES to the above question then lets continue ...

    A fairly valued account, from what I have averaged from other responces on this site works out to be about one months gross or about 10-15% of the seasonal income (just from maintenance).
    Trimming, clean-ups, ect. are extras and should not be consider in the sale price, they would be gravy for you if you get the accounts.

    For the above equipment and accounts, I would say that he is being fair with his asking price, although you have to take into consideration that it is nearing the end of the season, so will you make that money back plus a bit for you by the end of fall? Also, do you really need the equipment if you are already doing accounts of your own?
    Possibly try and just purchase the accounts and let him sell the equipment seperately .....
    Hope this helps :p
  3. lawnkid

    lawnkid LawnSite Senior Member
    Messages: 935

    First of all, what kind of equipment do you have right now? If you are looking to buy sokme e
  4. lawnkid

    lawnkid LawnSite Senior Member
    Messages: 935

    Sorry about that, anyway,first of all Welcome to Lawnsite. I would get like a 48" or 52" w/b for those properties. Then I would save up for some new power equipment. $5000 doesn't seem to bad for 22 accounts plus the equipment so it does not sound actually too bad. I would look i nto getting that trailer though cause you'll need one that big as you enpand. Good Luck
  5. Lawn-Scapes

    Lawn-Scapes LawnSite Silver Member
    Messages: 2,810

    If the equipment is in good shape and you like the accounts (in your general area & profitable).. go for it. Sounds decent (w/o seeing) to me.
  6. thfireman

    thfireman LawnSite Senior Member
    Messages: 541

    That sounds pretty close in line if the properties are decent and fairly close togater. You might want to count on a 15%-20% loss of clients because a few will take the opertunity to go with someone else or may not want to stay for some other reason.

    Look at the lawns and then if you feel it is worth it to you then go for it.
  7. Runner

    Runner LawnSite Fanatic
    Messages: 13,497

    If no one minds me saying so, KLMlawns wrote an excellent post. I would just like to add, make sure you get a no compete agreement with him. IN WRITING!
  8. m&m

    m&m LawnSite Member
    Messages: 169

    if the accounts are going to stay, i say it sounds like a fair deal.......you have the chance of making ur money back for the purchase off of his accounts.......this does not include the income from yours........also, if ya dont need the equipment, you can sort thru yours and his and keep what ya want and sell the rest..........then you are making ur money back another way......or consider keepig it all or part for back up equipment
  9. TurfGuyTX

    TurfGuyTX LawnSite Senior Member
    from DFW
    Messages: 648

    Runner is right. Get a no compete! Alot of articles in the past that I've read, show that many times in a transfer of accounts like this end up eventually retaining about 20%. I think the last article was with Lawn & Landscape. Anyway, good luck.

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