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 > Just starting your lawn care or landscaping business? > Starting a lawn care business.

Starting a lawn care business. How to start a lawn mowing business, lawn care business, or landscaping business. If you are starting a lawn care business, ask your questions here.

buying lawn accounts


Starting a lawn care business.

How to start a lawn mowing business, lawn care business, or landscaping business. If you are starting a lawn care business, ask your questions here.
Reply
 
Thread Tools Search this Thread
  #1  
Old 03-04-2013, 06:47 PM
wilcox_11 wilcox_11 is offline
Junior Member
 
Join Date: Feb 2013
Posts: 19
Rep Power: 2
wilcox_11 is on a distinguished road
Default buying lawn accounts

Was wondering what percentage of profit is average for buying lawn account. 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 03-04-2013, 11:22 PM
ratchetmaster2 ratchetmaster2 is offline
Senior Member
 
Join Date: Mar 2012
Posts: 185
Rep Power: 3
ratchetmaster2 is on a distinguished road
Default

Lawn care business tipsLawn Care Business Book
I'm a little confused what you're asking.


You're wondering about profit vs. initial price of buying an account?
I guess that would depend on how long you hold the account for, and what services you manage to sell
Reply With Quote
  #3  
Old 03-05-2013, 09:36 AM
wilcox_11 wilcox_11 is offline
Junior Member
 
Join Date: Feb 2013
Posts: 19
Rep Power: 2
wilcox_11 is on a distinguished road
Default

i'm asking like when someone puts there buisness up for sale. example would be they have 50 clients for $50,000 with a gross of 250,000. how do they calculate what price is right for number of clients?
Reply With Quote
  #4  
Old 03-05-2013, 10:33 AM
dpld dpld is offline
new member
 
Join Date: Jan 2012
Location: nj
Posts: 885
Rep Power: 0
dpld is on a distinguished road
Default

Quote:
Originally Posted by wilcox_11 View Post
i'm asking like when someone puts there buisness up for sale. example would be they have 50 clients for $50,000 with a gross of 250,000. how do they calculate what price is right for number of clients?

they really are not calculating anything.
they are just pulling numbers out of the @zz. most people selling a landscape business think it is worth far more then it actually is.

equipment is about the only part of a business purchase that can actually be converted into a real world value.

buying accounts on the other hand are completely different and that is where the fictional value comes in.

if the seller has no contracts then the accounts are barely worth a dime and other then a bird dog fee you would be foolish to pay them more.
if they have a signed contract and they have been a steady customer it would give more value in selling them and at that rate might be worth as much as a month and a half to 2 months value of a service contract.

sellers do not realize that they do not own their customers and with or with out him said customer is gonna be having someone cut his lawn and servicing his property and he is the one who decides who works on his property.

in the end it is a crap shoot and ultimately comes down to how much someone is willing to pay for something.

if someone is successful and is making a good living with continuous growth i would see no real logical reason to sell a business other then it is failing or mismanaged.
everyone comes up with a good excuse as to why they are selling but 99.9% of the time is they failed.

i been at it a while and this business will go on until i die even when i am retired and i will either have my children run it when they are older or i will have managers in place to run it.
there is a exception to a very small fraction of a percentage point for the few who are so successful that they have multiple businesses and they want to scale back or put more effort into the remaining businesses.

i am not saying that is the case at what you are considering but truth be told is everyday guys are starting up lawn businesses and they stick it out for a few years and build up a few dozen lawns but can not make any money and eventually sell out.
come time to sell, it is a turn key operation that takes care of itself and is ready and waiting for you to enjoy financial freedom and the american dream and if it were not for my bad back i would continue on living the dream but instead, since i am such a nice guy, i am gonna do the right thing and sell it to you and bestow the gift of financial success to you.
Reply With Quote
  #5  
Old 03-05-2013, 01:07 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 35,729
Rep Power: 10
Steve has disabled reputation
Default

Hi,

I'd suggest you read a lot of the buying lawn care accounts stories on here. Many of them have bought accounts and come back to post what they would have done differently. A lot of great insights and warnings.

If you are going to pay, we have seen prices average at about 1 months income for a lawn. You also better have something in place that they can't go back and market to those customers again.

Also figure a large group of them will leave once you buy it because they are family or friends of that business owner. So there are a lot of things to consider.
__________________
- 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
  #6  
Old 03-07-2013, 05:28 PM
Predator Predator is offline
Junior Member
 
Join Date: Mar 2011
Location: Baltimore
Posts: 6
Rep Power: 4
Predator is on a distinguished road
Cool Predator

Wilcox, great question. Here in the Baltimore area, I have bought out 2 companies. The asking price is usually ridiculously high as all you have is the eequip for sale in one hand and a bunch of promises in the other. We offer the seller fair market value for the pieces of equip. we want. Then we pay them the price of one weekly cut per month for 4 months after the client has paid us. So say a client pays $35 weekly for mowing. End of April, we bill $140 for mowing after the client pays us we pay seller his $35 cut, this goes on for 4 months. Your client and $ are guaranteed, no risk. Anybody else have a way, would love to hear it as our business plan revolves around buying someone out every other year.
Reply With Quote
  #7  
Old 03-08-2013, 04:21 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 35,729
Rep Power: 10
Steve has disabled reputation
Default

That is the first time I had heard of such a method and it sounds very creative.

Have you had any sellers balk at such a deal? If so, how did you sell them on it? Also what % of customers dropped when you bought the businesses? Have you found less dropped when you handle it this way than pay a flat price for all of them?
__________________
- 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
  #8  
Old 03-10-2013, 01:09 AM
ratchetmaster2 ratchetmaster2 is offline
Senior Member
 
Join Date: Mar 2012
Posts: 185
Rep Power: 3
ratchetmaster2 is on a distinguished road
Default

Quote:
Originally Posted by Steve View Post
Have you found less dropped when you handle it this way than pay a flat price for all of them?
I'm also curious of this aspect. I wonder how some clients would react when suddenly a different crew/company that they are unfamiliar with is mowing their lawn.
Reply With Quote
  #9  
Old 03-11-2013, 01:25 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 35,729
Rep Power: 10
Steve has disabled reputation
Default

I would think part of the process of buying/selling the accounts would be an introduction of the newer business owner to the customers so as to smooth out the transition process and not shock the 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
  #10  
Old 03-17-2013, 09:59 AM
Predator Predator is offline
Junior Member
 
Join Date: Mar 2011
Location: Baltimore
Posts: 6
Rep Power: 4
Predator is on a distinguished road
Default predator

Sorry it took so long to get back, gettin pretty busy here. Steve, yes every time we approach a seller with this they balk, we sit back and wait, call them every few days. When they realize they are not going to get their asking price, we usually end up getting a foot in the door and asked for a more detailed explanation. Good point on introductions, have to have them. We usually spend half of Feb. and all of March working on that. It makes people more comfortable with a transition. We have had no problem getting the seller to help because ultimately it means more $ in his pocket. we have never paid a flat fee for a business and will not, ever, there is no assurance the clients will migrate. To answer your question on %, we have had a 90% migration using our method and visiting each client personally. Hope this helps to answer some of everybody's questions, I am glad to tell you what I have experienced and I would be curious to hear about any of your buy-out techniques.
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
Buying lawn accounts. What's a fair price? The Green Man General Business Discussions 5 02-18-2013 01:21 PM
Buying Accounts is it worth it? hawthornelawncare Online Lawn Care Estimator - Help me bid this job 4 09-19-2011 09:45 AM
Buying accounts questions cwt2112 General Business Discussions 4 08-25-2011 10:26 AM
Buying Lawn Care Accounts LOUROCK Community Assistance 2 10-19-2008 09:31 PM
Buying accounts ProCut TM Community Assistance 10 04-20-2008 10:49 PM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
Looking for advice on a...
Tekeda1
04-13-2014 09:53 AM
Today 06:59 AM
by Just for Cuts
11 196
Trimec
acrajchel
Yesterday 08:24 PM
Today 06:12 AM
by acrajchel
2 40
leaf removal
tlf59263
Yesterday 10:00 PM
Yesterday 10:00 PM
by tlf59263
0 39
What Fertilizer to Use?
acrajchel
04-07-2014 01:56 PM
Yesterday 08:27 PM
by acrajchel
4 177
Nationwide lawn care...
Billy Goat
Yesterday 05:21 PM
Yesterday 08:25 PM
by Dan Tanner
1 69
There has to be an...
CDLAWNCARE
04-14-2014 12:59 PM
Yesterday 04:06 PM
by Dan Tanner
6 130
Gopher Forum Discount!
BlackRain75
04-12-2014 10:44 PM
Yesterday 02:31 PM
by kslawn
8 196
hello
NFrailey
Yesterday 01:39 PM
Yesterday 01:39 PM
by NFrailey
0 34
These are the days on...
ExtremeLawncareServices
03-22-2014 09:12 AM
Yesterday 12:40 PM
by ExtremeLawncareServices
24 828
Any greenhouse operators...
GoGreenerKS
Yesterday 11:21 AM
Yesterday 11:55 AM
by GoGreenerKS
2 67
Help with weed liability!
Prolawnofchatt
Yesterday 09:10 AM
Yesterday 11:32 AM
by Steve
2 86
First Day Back!
BelleCityLawn1
04-09-2014 09:13 PM
Yesterday 11:16 AM
by Steve
11 266
Mow America
stevegredler
04-13-2014 01:02 PM
04-14-2014 09:53 PM
by kslawn
5 151
Power Broom
acrajchel
04-14-2014 07:46 AM
04-14-2014 12:47 PM
by CDLAWNCARE
2 76
google earth
CDLAWNCARE
04-12-2014 03:24 PM
04-14-2014 11:37 AM
by Steve
7 163
Say Hello !!!
Steve
03-19-2007 11:18 AM
04-14-2014 11:34 AM
by Steve
1,176 283,950
Pricing a Mulch Job
dmcalpi
04-07-2014 02:16 PM
04-14-2014 11:32 AM
by Steve
20 488
Equipment reviews
Greg'slawnandlandscape
04-09-2014 07:17 AM
04-14-2014 11:27 AM
by Greg'slawnandlandscape
13 345
Sulky and Turf Tracer
acrajchel
04-07-2014 01:44 PM
04-14-2014 10:51 AM
by Steve
8 251
Aerating Prices?
Dan Tanner
04-08-2014 03:16 PM
04-14-2014 10:31 AM
by Steve
13 362
Estimating help
acrajchel
04-11-2014 06:06 PM
04-14-2014 10:20 AM
by Steve
3 128
Lawn Renovation
stevef1201
04-11-2014 12:00 PM
04-14-2014 10:03 AM
by Steve
5 145
Need help bidding church...
GreenRidge Lawn&Landscape
04-07-2014 08:01 PM
04-14-2014 09:49 AM
by Steve
12 347
Hello all
Griff20114
04-12-2014 05:08 PM
04-14-2014 09:46 AM
by Steve
1 79
Step by Step Spring Lawn...
WarriorLawnscaping
04-10-2014 07:01 AM
04-14-2014 09:43 AM
by Steve
5 195
Jeff Cowden
jcowden
04-11-2014 07:27 PM
04-14-2014 09:39 AM
by Steve
1 84
Exmark Commercial 30...
Dan Tanner
04-11-2014 05:35 AM
04-14-2014 09:37 AM
by Steve
4 149
What Was Your Setup When...
superrman77
02-11-2014 10:53 AM
04-14-2014 08:04 AM
by acrajchel
21 1,511
Accepting credit cards,...
Darksteel
03-17-2014 08:01 PM
04-13-2014 10:31 PM
by AkersLawn
12 614
Small guy time to get a...
googus
04-08-2014 08:16 AM
04-13-2014 07:18 PM
by A. Kulak Landscaping
9 274
Weekly vs. Bi-weekly
CDLAWNCARE
04-12-2014 01:48 PM
04-13-2014 06:03 PM
by kslawn
9 280
Weed ID help
TwinBrosLC
04-12-2014 10:39 AM
04-13-2014 07:40 AM
by stevef1201
4 120
Lexington, KY
acrajchel
04-07-2014 01:06 PM
04-11-2014 09:49 PM
by acrajchel
1 100
Food Plot Management
BlackRain75
04-11-2014 10:20 AM
04-11-2014 03:51 PM
by Steve
4 106
Estimating a job
acrajchel
04-08-2014 11:07 AM
04-11-2014 03:32 PM
by Steve
6 245
New Boomless Sprayer!
BlackRain75
01-03-2014 01:01 PM
04-11-2014 03:25 PM
by Steve
11 969
Hello....
SWFloridaLawns
04-10-2014 06:15 PM
04-11-2014 02:28 PM
by Steve
2 104
Truck, Trailer,...
hawthornelawncare
12-23-2011 12:01 AM
04-10-2014 10:33 PM
by ExtremeLawncareServices
78 24,927
Trading Accounts
goodtimez
04-09-2014 05:42 PM
04-10-2014 01:55 PM
by Steve
2 131
Grass that has...
erock289
04-09-2014 10:21 AM
04-10-2014 01:52 PM
by Steve
3 149
Prowrap Trimmer Engine...
Steve
05-24-2006 07:05 PM
04-10-2014 01:09 PM
by Steve
10 2,182
1st annual Easter egg...
Greg'slawnandlandscape
04-09-2014 06:58 AM
04-10-2014 01:07 PM
by Steve
1 96
Hello everyone
aceslawnandgarden
04-03-2014 06:54 PM
04-10-2014 01:06 PM
by Steve
9 334
Weed control programs
Mallard91
04-02-2014 12:25 PM
04-10-2014 12:56 PM
by Steve
6 313
homeowner vs...
GoGreenerKS
04-07-2014 10:54 AM
04-10-2014 12:52 PM
by Steve
8 247
Hello
smgibson
04-07-2014 10:06 PM
04-10-2014 12:39 PM
by Steve
2 103
33" Cub Cadet Walk...
Dan Tanner
04-07-2014 08:49 AM
04-10-2014 12:35 PM
by Steve
5 173
They may never even see...
Darksteel
04-05-2014 11:40 AM
04-09-2014 05:13 PM
by goodtimez
7 306
$300 and counting
acrajchel
04-04-2014 10:03 AM
04-07-2014 10:34 PM
by Steve
12 477
Hello From North Texas
stanleylawncare
04-07-2014 01:14 PM
04-07-2014 10:15 PM
by Steve
1 98
» Popular Tags
2wd ads aerator butterfly gardens buy charge christmas client craigslist credit card customers echo exmark ferris financing florida flower bed georgia gopherhaul grass grass clarksville gravely gravely 34" zero turn health holiday holiday lighting how much to charge how to bid installation kansas city kawasaki lawn care lawn care business book lawn care business podcast lawn care business show leaf lighting brass outdoor lights llp marketing mow mowing mowing clarksville mulch mulch estimate new and restored landscapes new buisness new business new start office management payment podcast property management company redmax savannah scag schedule selling seo snow sole proprietorship sprayer starting a business stihl subcontractor tree care unreasonable upsell walker winter money making ideas year
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 08:06 AM.


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

All times are GMT -5. The time now is 08:06 AM.

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