Yes or no????

Discussion in 'Lawn Mowing' started by Jon99, Aug 23, 2002.

  1. Jon99

    Jon99 LawnSite Senior Member
    Messages: 375

    First off, I am a new guy with 2 yards...

    Today I had a guy approach me and offered to sell me his three accounts for $1500.. The first account is an auto body shop with a one acre yard (he charges $50), the second account is another business next door (same size lot) to the body shop and the guys house ($90)

    The third account is a construction company, mowing their models and newly built homes that are for sale plus their lots (normally 5-10).. Right now he is mowing 12 yards weekly at $28 a yard plus 6 lots once a month for $25 per... I have seen 4 of the houses, all easy 30 minute yards with little trimming..

    I told him that I was not interested in paying $1500 up front, but would consider paying him 20% of all revenue from those three accounts with a max payment from me of $1500...

  2. dforbes

    dforbes LawnSite Member
    Messages: 195

    your offer seems more than fair to me. I would not pay the $1500 up front either. how did he react to your offer?
  3. awm

    awm LawnSite Gold Member
    Messages: 3,354

    i think u offerd him a good deal for him an u. realestate companies are notorious
    for not putting any more money into a house than they just have to. all of the maintenance money is subtracted from
    their profit. i assume developers would be the same.good luck.
  4. Cut 2 Please

    Cut 2 Please LawnSite Member
    Messages: 221

    That sounds like the most resonable idea of buying out another LCO that I have heard. Makes a lot of sense to me.
  5. Jon99

    Jon99 LawnSite Senior Member
    Messages: 375

    He sounded very interested on the phone, just a little nervous about making sure I paid him the correct amount... I am sure we will write up a little contract and I need to be very upfront and assure him that I am not out to screw him....
  6. dforbes

    dforbes LawnSite Member
    Messages: 195

    Make sure you put a no compete in the contract. Good luck with your venture. It sounds good
  7. Sounds like a fair deal to me-show him copies of the statements.
    Plus I would only pay him after money is collected for work, not on what is billed.
  8. Floridalandcare

    Floridalandcare LawnSite Senior Member
    from Tampa
    Messages: 314

    I think you made the right choice , theres not guarentee the customers will keep you.
  9. TurfGuyTX

    TurfGuyTX LawnSite Senior Member
    from DFW
    Messages: 648

    Be prepared for those commercial accounts to require insurance. I've done alot of work for homebuilders. The money and work can be good, or some are hard to get paid from. Lots of paper work too. BTW, I thought your offer is fair. What is his reason for selling? Good luck.
  10. Brickman

    Brickman LawnSite Bronze Member
    Messages: 1,249

    Every thing mentioned here is a good idea. I would find out WHY he is selling. Make him sign a non compete agreement. I didnt' when I just sold me biz, but the guy that bought my biz is a friend, we have known each other for a long time.

    Also look into insurance.

    I think that $1500 is a good price, providing the customers stay with YOU.
    Advertizing to get that amount of work is costly.

    Make sure that the real estate and developers pay on time, not when ever they get around to it. They can pay in their own sweet time, and trust me YOU are not the highest priority.

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