Lawn Care Business Forum Lawn Care Business Book Lawn Care Business Blog Lawn Care Software
Home Forum Contract & Flyer Templates Blog Software Videos Podcast Calculators / Estimators Store Mower Review Design It Yourself Lawn Business School

Go Back   GopherHaul Landscaping & Lawn Care Business Marketing Forum > Business > General Business Discussions

General Business Discussions A place to talk about general business discussions.

Buying lawn accounts. What's a fair price?


General Business Discussions

A place to talk about general business discussions.
Reply
 
Thread Tools Search this Thread
  #1  
Old 02-11-2013, 01:38 PM
The Green Man The Green Man is offline
Junior Member
 
Join Date: Feb 2013
Posts: 2
Rep Power: 2
The Green Man is on a distinguished road
Default Buying lawn accounts. What's a fair price?

Hello everyone. I've started my own Landscaping business and I'm about to go into my 3rd season. I want to purchase some Residential and Commercial accounts and was wondering what you all thought would be a fair price to pay. I saw someone selling 65 accounts with about $12,000 worth of equipment for $30,000. Way more than what I want to get into so what do you think I should spend for like 15 accounts that are in the 35-45 dollar a cut size range? also, What should I be spending for individual accounts? Any help is appreciated. Thanks
Reply With Quote

Stop guess-timating. Learn how to estimate and make money! $$$
Mow Time Estimator Lawn Care Price Estimator Mulch and Topsoil Calculator Snow Plow Estimate Calculator


  #2  
Old 02-11-2013, 03:03 PM
dpld dpld is offline
new member
 
Join Date: Jan 2012
Location: nj
Posts: 885
Rep Power: 0
dpld is on a distinguished road
Default

Lawn care business tipsLawn Care Business Book
buying someone else's accounts is a tricky deal.
sometimes it works out great but most of the time it ends up a disaster.

most guys that sell their accounts have them valued far higher then they are worth and don't take into consideration that until the work is done and the customer retains them that it is all speculation.

like i said, there are some situations that work out well but they are far and few between and the first thing i always say is, if it is doing so good or makes that kind of money then why are you selling?

i look all the time at ad's that have businesses up for sale and although i would never buy one i always laugh at the excuses as to why they are selling like " owner is retiring " and the dude is 45 or " pursuing other ventures " and the owner is just getting a job with someone.

i have also seen guys that have a gazillion lawns every three years put a list together of all the garbage accounts they want to unload and make up some story as to they are retiring or down sizing.

i know the prospects of buying a business may appear to be instant satisfaction but the only true real way to build it up is through traditional means by way of marketing and word of mouth.
it may take longer but the results are usually far better.
Reply With Quote
  #3  
Old 02-12-2013, 10:59 AM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 36,501
Rep Power: 10
Steve has disabled reputation
Default

Quote:
I saw someone selling 65 accounts with about $12,000 worth of equipment for $30,000.
$30,000 - $12,000 = $18,000

$18,000 / 65 = $276 per customer

Say these are $35 a mow

$276 / $35 = 7.8

So this lawn care business owner is valuing the customers at about 7.8 cuts or two month's income per customer. Would he accept 1 month? (4 x $35) = $140?

If they were decent clients with decent lawns and you felt you could keep them after they were 'sold' to you. Would 1 month's income make it worth while to you?

Do you know what your current cost is to acquire a new customer?
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
  #4  
Old 02-17-2013, 04:14 PM
The Green Man The Green Man is offline
Junior Member
 
Join Date: Feb 2013
Posts: 2
Rep Power: 2
The Green Man is on a distinguished road
Default

For $140 per customer that would be worth it to me. I figured someone would want to sell each individual account for around 150-200 which I think is a fair price especially if you want to look at it like you just gave them a free month of mowing. As of now I can't purchase the guys business but I would like to acquire at least 10 more solid this season. Not trying to be a "big" company. Would like to keep it around 25-30 customers so I can handle it myself with a part time employee.
Reply With Quote
  #5  
Old 02-18-2013, 08:53 AM
stevef1201 stevef1201 is online now
Senior Member
 
Join Date: Apr 2010
Location: Central Florida
Posts: 1,146
Rep Power: 6
stevef1201 is on a distinguished road
Smile

There is a guy around here (I know him), who every year buys some used equipment, signs up a bunk of 'accounts', then sells the business. The poor slob that buys them then has to do them at the rate quoted by the seller. LOSE money with every cut! ( I know he told me he gets these accounts by bidding 4 and 5 dollars per cut for mobile home parks and 10 dollar cuts for residential) He makes great money each year 'selling' the business. You have to be very careful when buying someone else's accounts. Why not just let him go out of business and advertise to his customers?
Reply With Quote
  #6  
Old 02-18-2013, 01:21 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 36,501
Rep Power: 10
Steve has disabled reputation
Default

Quote:
For $140 per customer that would be worth it to me
How much are you currently spending to acquire customers? Do you know how much you are spending in your marketing and how many customers have come from it? you can divide those figures and find your cost to acquire each customer.

Then you can compare that value with the potential cost to buy these customers.
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Buy a good company at a fair price and hold it. Steve Money, Finances, Stocks, Bonds, & Investments. 2 08-01-2014 01:44 PM
whats a fair price? LawnBoy0311 Online Lawn Care Estimator - Help me bid this job 2 07-30-2012 10:30 AM
Buying Lawn Care Accounts LOUROCK Community Assistance 2 10-19-2008 09:31 PM
What is the fair price for this job? Jimmypop Online Lawn Care Estimator - Help me bid this job 1 06-06-2008 01:55 AM
Buying accounts ProCut TM Community Assistance 10 04-20-2008 10:49 PM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
Leaf Box & Loader Set...
ringahding1
Today 06:20 AM
Today 06:20 AM
by ringahding1
0 16
Jungle to Beautiful
stevef1201
10-17-2014 09:54 AM
Today 05:42 AM
by stevef1201
9 340
Pressure Washing Like a...
TNTurf
08-01-2014 11:47 PM
Yesterday 11:51 PM
by TNTurf
5 600
What parts do you carry...
Just for Cuts
10-17-2014 09:08 AM
Yesterday 09:51 PM
by ExtremeLawncareServices
15 525
These are the days on...
ExtremeLawncareServices
03-22-2014 09:12 AM
Yesterday 09:32 PM
by ExtremeLawncareServices
154 11,126
Cheapskate Landlord...
Mr. Mow
Yesterday 06:33 AM
Yesterday 08:44 PM
by biglee
6 156
Have you ever had to...
SouthernRootsLawnCare
07-26-2014 02:41 PM
Yesterday 08:34 PM
by biglee
10 1,678
Sunny Beach Tennis...
SGL1
10-19-2014 11:24 PM
Yesterday 07:13 PM
by SGL1
2 117
Hello, from TEXAS
sanchez5
10-17-2014 09:56 PM
Yesterday 06:15 PM
by Steve
3 245
Look out Bob Villa -...
Mr Dave
09-30-2014 10:06 AM
Yesterday 05:42 PM
by SGL1
7 1,205
how to fi d commercial...
mchampion319
10-19-2014 09:50 PM
Yesterday 04:41 PM
by Steve
1 118
Hello From Tennessee
mrmann901
10-17-2014 10:02 PM
Yesterday 04:24 PM
by Steve
1 199
questions on order to...
jack2048
10-13-2014 11:15 AM
Yesterday 03:27 PM
by Mr. Mow
15 626
Organic Lawn Care...
NHray
10-17-2014 06:05 PM
Yesterday 02:22 PM
by Steve
1 234
This sucks...
Matther777
09-18-2014 04:56 PM
Yesterday 02:14 PM
by Steve
14 2,073
Cement mixer
KevinsLawns
10-15-2014 08:03 PM
Yesterday 02:11 PM
by Steve
7 371
Hello ! New guy Rob here
RWorthley1
10-17-2014 04:05 PM
Yesterday 02:09 PM
by Steve
1 212
first year update
cmdlawncare
08-12-2014 05:41 PM
Yesterday 02:07 PM
by Steve
3 1,188
Pda
stevef1201
10-18-2014 02:05 PM
10-19-2014 11:27 PM
by SGL1
2 193
Snow Blowing
gwilson98
10-12-2014 02:21 PM
10-17-2014 02:51 PM
by Steve
6 555
Spreading Weeds?
WesleySnips
07-27-2014 09:46 PM
10-17-2014 07:49 AM
by SGL1
6 858
Grasswhoopins.com Anyone...
GRASS WHOOPINS
06-21-2011 11:38 PM
10-16-2014 01:30 PM
by ExtremeLawncareServices
42 9,215
I Want to buy old...
ExtremeLawncareServices
10-10-2014 10:04 PM
10-15-2014 09:12 PM
by ExtremeLawncareServices
6 597
Say Hello !!!
Steve
03-19-2007 11:18 AM
10-15-2014 06:43 PM
by NHray
1,190 339,893
Workmans compensation...
CDLAWNCARE
10-15-2014 08:05 AM
10-15-2014 02:57 PM
by Steve
2 339
Do you find weed eating...
chuck2s
10-15-2014 02:10 PM
10-15-2014 02:10 PM
by chuck2s
0 306
Incorporating &...
WesleySnips
10-01-2014 09:39 PM
10-15-2014 01:37 PM
by kslawn
20 1,400
Falling into business
stellarmowing
09-28-2014 04:35 PM
10-15-2014 05:57 AM
by ringahding1
8 1,419
Apartment Complex and...
lxarth
06-22-2011 01:10 PM
10-14-2014 06:25 PM
by jrs.landscaping
42 9,499
I LOVE hedge trimming
stevef1201
10-13-2014 09:05 AM
10-14-2014 01:06 PM
by Steve
5 442
Help with seeder...
ExtremeLawncareServices
10-09-2014 07:39 AM
10-13-2014 08:09 PM
by ExtremeLawncareServices
5 602
The Market watch
WesleySnips
10-12-2014 08:47 PM
10-13-2014 05:40 PM
by SGL1
3 444
Help pricing a large...
Bradcook21
10-07-2014 06:49 AM
10-13-2014 02:00 PM
by Steve
7 793
leaf removal
Double J LLC
10-03-2014 04:24 PM
10-13-2014 06:46 AM
by Billy Goat
19 1,419
Acerage Rake
acrajchel
04-23-2014 07:23 PM
10-12-2014 10:53 PM
by SGL1
2 760
John Deere z235 Deck
WesleySnips
09-29-2014 06:02 PM
10-12-2014 06:20 PM
by kslawn
25 1,561
Credit card contract
SGL1
10-06-2014 05:31 PM
10-12-2014 03:40 PM
by SGL1
18 983
Truck craft dump bed...
ExtremeLawncareServices
10-04-2014 08:41 PM
10-10-2014 11:35 AM
by Steve
7 883
First Time River Rock...
berryjam
10-09-2014 06:09 PM
10-10-2014 11:08 AM
by Steve
2 536
West cost lawn prices
SGlawncare
10-09-2014 09:51 PM
10-10-2014 11:03 AM
by Steve
1 525
Question?what should I...
dalvan0
09-24-2014 11:10 PM
10-09-2014 05:58 PM
by kslawn
28 2,052
Mowing the hills
EyeCatchersNow
07-08-2014 12:22 PM
10-09-2014 04:19 PM
by Just for Cuts
25 2,913
snowplowing
jshak40
09-01-2014 07:20 AM
10-09-2014 02:21 PM
by Steve
25 3,560
Changing Scag Freedom Z...
maggiedavidson
10-06-2014 12:24 PM
10-08-2014 06:34 PM
by ExtremeLawncareServices
7 769
The most dangerous part...
Steve
10-06-2014 02:45 PM
10-07-2014 04:18 PM
by ExtremeLawncareServices
3 751
Good Mower
jack2048
10-04-2014 05:34 PM
10-07-2014 01:05 PM
by Steve
7 835
Mulching fad killing...
Tree geek
10-06-2014 08:37 PM
10-06-2014 08:37 PM
by Tree geek
0 654
Help a brother...
tbtigers03
09-28-2014 11:41 AM
10-06-2014 02:53 PM
by Steve
11 1,380
Update on LawnsAway and...
Ian Lovejoy
09-28-2014 10:24 AM
10-06-2014 01:30 PM
by Steve
4 1,245
A GREAT Story
stevef1201
10-02-2014 10:33 AM
10-06-2014 12:50 PM
by Steve
6 1,048
» Popular Tags
4x4 apartment complex article marketing auger bark bid billy goat brushcutter blades care charge collections decorating ditches equipment rental exmark ferris foreman four wheel drive fundraiser gopherhaul grass gravely growing a lawn care business how much to charge how to bid husqvarna john deere quik trac kawasaki landscape services lawn lawn care lawn care business lawn care business seo lawn care business show lawn care business website lawn care business website seo lawn care website leaf removal marketing mr dave mulch mulch estimate new buisness new mower podcast promotion pto redmax running a business scag scripts search engine optimization seo shreaded small engine repair snow sprayer starting a business steve stihl theft theft of services top dresser toro toro grand stand trailer trimmer rack turfgrass consulting walker wood
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 08:31 AM.


(C) 2011 Riggs Publications - Terms of use & Privacy Policy

All times are GMT -5. The time now is 08:31 AM.

(C) 2011 Riggs Publications - Terms of use & Privacy Policy