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  • Buying accounts

    I have the chance to buy some accounts that will get my business to where it needs to be, but the guy wants 4 months revenue for them, what do you think? Is it worth it?

    what can I do to reduce the risks of losing the accounts after I pay 4 months income for them.

    Thanks, John
    ProCut Turf Management

  • #2
    Hi John,

    That sounds high compared to what we have talked about in the past.

    A while back I put together this blog post on the topic of purchasing lawn care accounts.

    Suggestions on buying lawn care customer accounts. - General rule of thumb for buying customers is that they are worth about 1 month revenue. If they are commercial youíll pay a little more and if there is a signed multi-year agreement in place ( which you said there is ) then this will push the price up too. So it could be worth as much as 2 or 3 months revenue depending on the situation.



    Let me know if this information helps.
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    • #3
      John

      In our area guys pay no more than 4 cuttings basicaly a month of pay

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      • #4
        I am in FL so the season is all year though it does slow down Dec-Mar
        most of these accounts are Commercial

        I was thinking of offering him 3 months but no more

        my incentive is that this will bring my monthly income to where it needs to be

        John

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        • #5
          Are these commercial clients under contract? If so do you know for how long? Also did you ask why he was selling them?
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          • #6
            I'm not sure if they are under contract I will ask that.
            He is selling because he is getting out of the business.

            I ask him about a no compete clause and he has no problem with that. I also told him that most guys around here are charging 3 months and that the board say 1 month. He is pretty set on 4 months I think it is a set dollar amount that he wants.


            John

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            • #7
              Well it will be interesting to hear what he has to say and when these contracts end.
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              • #8
                Thanks for the replies guys

                I appreciate it

                John

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                • #9
                  You are welcome. Let us know what you find out and what you decide to do.
                  - Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
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                  • #10
                    I offered him 3 months and he is flaking out and not sure he wants to sell them now.

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                    • #11
                      I am guessing not many others made a bid on it either?
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