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: 3
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 online now
Administrator
 
Join Date: May 2003
Posts: 37,460
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: 3
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 offline
Senior Member
 
Join Date: Apr 2010
Location: Central Florida
Posts: 1,236
Rep Power: 7
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 online now
Administrator
 
Join Date: May 2003
Posts: 37,460
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
Unemployment rates drop,...
Steve
07-02-2015 12:40 PM
Yesterday 12:48 PM
by GreenWorx
3 139
Is it too late to do...
markty
06-16-2015 05:28 PM
07-03-2015 07:34 PM
by wolfpacker53
5 2,044
I dont know what to do...
Bradcook21
06-21-2015 08:49 AM
07-03-2015 07:33 PM
by stallman419
12 2,236
Should I buy this Exmark...
googus
07-03-2015 09:22 AM
07-03-2015 03:29 PM
by googus
3 127
Just about mid year, how...
GreenWorx
06-24-2015 07:05 PM
07-03-2015 02:53 PM
by American L&T
6 1,957
another newish job for me
holymoly
06-07-2015 08:34 AM
07-03-2015 02:06 PM
by American L&T
9 2,166
Before & After tree...
COREtreeservice
07-01-2015 09:20 PM
07-01-2015 09:20 PM
by COREtreeservice
0 105
Dogs
Mr. Mow
06-29-2015 02:37 PM
07-01-2015 11:28 AM
by Steve
6 1,932
Ready to learn and get...
Koley Lawn & Landscape
06-28-2015 05:16 AM
07-01-2015 11:26 AM
by Steve
8 1,911
Three Stripe Land Care...
hammr04
06-30-2015 07:19 PM
07-01-2015 11:24 AM
by Steve
1 102
Country Life Lawn Care
darleneh
06-29-2015 11:24 AM
06-30-2015 01:25 PM
by Steve
3 1,761
Rubber mulch...
avetslawncare
06-24-2015 09:28 PM
06-29-2015 09:23 PM
by Chilehead
6 1,915
Marketing ideas
xandrew245x
04-29-2014 06:35 AM
06-25-2015 07:11 PM
by GreenWorx
34 5,797
Never ending sod jobs
avetslawncare
06-05-2015 09:46 PM
06-25-2015 11:42 AM
by Steve
11 2,402
Weed and Feed Service...
mike94740
06-23-2015 05:50 PM
06-24-2015 09:56 PM
by avetslawncare
2 1,823
Trimming hedges / trees,...
Hard-Body lawn & garden
06-23-2015 07:08 PM
06-24-2015 09:59 AM
by Steve
1 1,821
Hi Everyone from Arkansas
KellyMarie
06-04-2015 04:16 PM
06-23-2015 01:34 PM
by KellyMarie
4 2,098
how to make customers...
Bradcook21
05-27-2015 05:04 PM
06-23-2015 06:36 AM
by GreenWorx
7 2,339
problems with a customer...
LawnCareMan280
06-16-2015 10:26 PM
06-22-2015 11:11 AM
by Steve
6 2,139
Please review this FREE...
markty
06-21-2015 07:42 AM
06-22-2015 11:00 AM
by Steve
1 1,848
A good commercial bid...
burtle
06-20-2015 09:09 PM
06-22-2015 10:56 AM
by Steve
1 1,915
What would you do with...
holymoly
06-20-2015 06:48 PM
06-22-2015 10:48 AM
by Steve
1 1,878
New Member just joined...
vgoleco@hotmail.com
06-19-2015 03:49 PM
06-22-2015 10:42 AM
by Steve
2 1,865
Credit Cards - What's in...
Shark1611
06-16-2015 03:04 PM
06-21-2015 07:24 PM
by Chilehead
4 1,976
Blade usage
Wolf4dk
06-16-2015 12:18 AM
06-21-2015 05:35 PM
by kslawn
4 1,982
Hello, I am new to the...
adamslawnservices
06-17-2015 08:06 PM
06-19-2015 10:28 AM
by Steve
3 1,901
First commercial bid
SGL1
06-12-2015 08:57 PM
06-18-2015 05:04 PM
by SGL1
9 2,372
Needing a website built
burtle
06-17-2015 09:02 AM
06-18-2015 11:02 AM
by Steve
7 2,058
I have been rude and...
biglee
06-15-2015 10:11 PM
06-18-2015 10:46 AM
by Steve
10 2,141
Start LIKING FACEBOOK...
rlclawncare123
02-26-2015 12:06 AM
06-17-2015 08:38 AM
by burtle
9 3,222
Customer keeps adding...
Mr. Mow
06-13-2015 06:22 AM
06-16-2015 10:23 AM
by Steve
11 2,399
Pass discounts onto...
burnell76
06-03-2015 06:33 PM
06-16-2015 10:02 AM
by burnell76
3 2,069
burned grass only where...
nhauto
06-15-2015 05:28 PM
06-16-2015 09:45 AM
by Steve
2 1,938
Half year mark review.
Steve
06-02-2015 11:24 AM
06-15-2015 01:04 PM
by Steve
18 2,691
These are the days on...
ExtremeLawncareServices
01-11-2015 10:41 AM
06-15-2015 01:01 PM
by Steve
86 9,759
New Member
Bruce Fehr
06-05-2015 07:13 PM
06-15-2015 12:53 PM
by Steve
6 2,070
New to the business,...
CarefreeMowing
06-12-2015 02:36 PM
06-15-2015 12:50 PM
by Steve
1 1,959
Beginner Mistakes:...
Steve
01-31-2007 11:45 AM
06-13-2015 08:48 AM
by holymoly
45 12,090
New to the forum, new to...
CarefreeMowing
06-11-2015 12:35 PM
06-12-2015 10:44 AM
by Steve
2 1,868
problems with a customer
LawnCareMan280
05-19-2015 06:28 PM
06-11-2015 10:50 PM
by stallman419
8 2,435
Website Review
Outdoordesignsknox
06-08-2015 08:44 PM
06-11-2015 09:48 PM
by Just for Cuts
13 2,329
Anyone need help? I have...
biglee
05-06-2015 12:22 PM
06-10-2015 01:45 PM
by holymoly
15 3,024
Hello from the GREAT...
gbfarmsllc
06-09-2015 11:10 AM
06-10-2015 01:29 PM
by Sprinkler Buddy
2 1,939
Hey guys and gals, I'm...
Joeyhall
06-03-2015 03:54 PM
06-08-2015 02:15 PM
by chris2500hd
8 2,190
Mowing Bermuda...
Mr. Mow
06-02-2015 12:45 PM
06-08-2015 12:45 PM
by Steve
12 2,352
Hey Guys
PrattLandscaping
06-07-2015 06:37 PM
06-08-2015 12:23 PM
by Steve
2 1,956
Share your stolen...
SGL1
05-27-2015 09:05 PM
06-08-2015 11:54 AM
by Steve
25 2,913
Hello there My name is...
zwalk1839
06-04-2015 11:10 PM
06-08-2015 11:52 AM
by Steve
4 2,071
Laid off oil field...
Mr. Mow
05-30-2015 09:03 AM
06-08-2015 06:20 AM
by Mr. Mow
4 2,189
» Popular Tags
ad landscaping advertising aerocore apartment bid apartment complex bark billy goat brushcutter blowout bob villa bush collections commercial contract help curb appeal services deliquentaccounts demonstration design ditches door hangers edging employee problems equipment dealer equipment rental foreman free advertising google growing a lawn care business hardscapes hills husqvarna increase customers jobs landscape landscape services landscaping landscaping training lawn aeration lawn care lawn mowing marketing marketing secrets more customers business mr dave mulch new business ordinance past due patio install per hour charge per hour service profit on employee push versus ride scag scripts sell the vision seo shell small engine repair sq ft steep lawns swzt trailer tree tree pics trimmer rack up sell employee web design website website design www.greenturion.co.za
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 10:01 AM.


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

All times are GMT -5. The time now is 10:01 AM.

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