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, 07:47 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 03-05-2013, 12:22 AM
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, 10:36 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, 11:33 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, 02:07 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 36,835
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, 06:28 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, 05:21 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 36,835
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, 03:09 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, 02:25 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 36,835
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, 10:59 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 02:21 PM
Buying Accounts is it worth it? hawthornelawncare Online Lawn Care Estimator - Help me bid this job 4 09-19-2011 10:45 AM
Buying accounts questions cwt2112 General Business Discussions 4 08-25-2011 11:26 AM
Buying Lawn Care Accounts LOUROCK Community Assistance 2 10-19-2008 10:31 PM
Buying accounts ProCut TM Community Assistance 10 04-20-2008 11:49 PM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
adding something new...
veteranslawncaresystems
Yesterday 12:13 AM
Today 01:57 AM
by veteranslawncaresystems
2 73
New to the forum
LCRobert
01-26-2015 10:21 PM
Yesterday 07:47 PM
by LCRobert
6 138
Government contracts
avetslawncare
11-15-2014 08:50 AM
Yesterday 04:27 PM
by Chilehead
7 784
Contact last years...
googus
Yesterday 09:13 AM
Yesterday 12:31 PM
by Steve
1 58
What happened to Better...
Steve
01-27-2014 04:07 PM
Yesterday 12:26 PM
by Steve
21 3,145
Lawn care truck
Steve
10-10-2009 03:40 AM
Yesterday 12:23 PM
by Steve
44 15,998
Looking for advice on...
berryjam
01-21-2015 07:37 PM
Yesterday 12:13 PM
by Steve
12 363
Bidding to get other work
Rodriguez11
07-21-2011 11:52 PM
Yesterday 12:08 PM
by Steve
29 9,390
How many contracts...
5StarLawnscaping
01-12-2015 03:51 PM
Yesterday 11:04 AM
by ExtremeLawncareServices
10 549
"Part Timers", "Low...
doug1980
06-10-2009 12:55 PM
01-27-2015 09:01 PM
by jrs.landscaping
43 10,266
Is anyone doing mosquito...
BWild
01-27-2015 12:30 PM
01-27-2015 07:24 PM
by avetslawncare
4 106
TaskEasy & Plowz & Mowz...
jrwalker333
01-25-2015 01:02 PM
01-27-2015 02:14 PM
by Steve
5 178
New to group
ron@alpine
01-27-2015 08:45 AM
01-27-2015 01:29 PM
by Steve
1 73
please Help with none...
Lawnboyman1170
01-09-2015 09:46 AM
01-27-2015 01:27 PM
by Steve
13 598
does this sound good or...
Bradcook21
01-22-2015 09:24 AM
01-27-2015 07:42 AM
by ringahding1
9 306
second year advise
cmdlawncare
01-23-2015 06:22 PM
01-27-2015 07:31 AM
by ringahding1
6 259
These are the days on...
ExtremeLawncareServices
01-11-2015 11:41 AM
01-25-2015 09:34 AM
by ExtremeLawncareServices
9 544
need advise
rawssrob
02-23-2010 02:45 PM
01-23-2015 06:40 PM
by cmdlawncare
7 2,573
New to forum
ROB N
01-23-2015 08:35 AM
01-23-2015 01:53 PM
by Steve
1 133
Extending the life of...
rmccutchan
01-17-2015 12:37 AM
01-23-2015 01:43 PM
by Steve
8 369
osceola lawn service
jasa@wildblue.net
01-22-2015 03:23 PM
01-23-2015 01:38 PM
by Steve
1 152
Tax Question
Wolf4dk
01-20-2015 01:11 AM
01-22-2015 02:28 PM
by Steve
4 276
Billy Goat Vac
Mr. Mow
01-19-2015 07:42 AM
01-22-2015 02:18 PM
by Steve
6 266
Property Pricing
GVL
01-19-2015 02:46 PM
01-21-2015 02:18 PM
by Steve
5 324
Landscapers Source For...
breadcrumb
01-16-2015 02:44 PM
01-21-2015 05:55 AM
by breadcrumb
14 488
Hoa advice
Bradcook21
01-16-2015 09:36 PM
01-20-2015 04:30 PM
by Steve
4 301
My Invention
biglee
01-11-2015 07:51 PM
01-20-2015 10:16 AM
by biglee
16 651
How to beat the pre pay...
stansg1fresh
01-13-2015 04:33 PM
01-19-2015 03:38 PM
by ringahding1
3 381
Hello from Md
homey
12-17-2014 06:55 PM
01-19-2015 01:37 PM
by Steve
12 1,159
Hi from Illinois
burtle
01-02-2015 09:46 PM
01-19-2015 01:22 PM
by Steve
3 546
Hello from SW FL!!
5StarLawnscaping
12-05-2014 02:35 PM
01-19-2015 01:20 PM
by Steve
14 1,478
Lost my @#$ blower
stevef1201
01-11-2015 08:31 AM
01-17-2015 02:21 PM
by lxarth
2 400
Another Illinoisan.....
barhopper
01-11-2015 05:38 PM
01-16-2015 04:29 PM
by Steve
10 463
marketing with pizza...
apmAkron
01-15-2015 09:57 AM
01-15-2015 06:29 PM
by Steve
4 293
CRM and Quickbooks?
5StarLawnscaping
01-15-2015 08:06 AM
01-15-2015 08:06 AM
by 5StarLawnscaping
0 218
New Member, Indiana Iraq...
Timbo
07-14-2011 09:44 AM
01-14-2015 06:14 PM
by Steve
10 3,817
check this box truck out!
BLAZIER-1991
01-07-2015 07:40 PM
01-13-2015 03:06 PM
by biglee
8 668
My community only ad...
googus
01-12-2015 09:55 AM
01-13-2015 02:44 PM
by Steve
5 349
12 Years in Business!
Chilehead
10-23-2014 09:07 AM
01-13-2015 09:37 AM
by Chilehead
18 1,844
use a small business...
BLAZIER-1991
12-25-2014 12:21 AM
01-12-2015 06:32 PM
by BLAZIER-1991
30 1,610
tips on creating a...
BLAZIER-1991
01-08-2015 07:22 PM
01-12-2015 06:19 PM
by BLAZIER-1991
4 493
During Your Down Time
achri12
12-24-2014 03:03 PM
01-12-2015 03:54 PM
by Steve
10 1,125
Leaf cleanup
Bradcook21
01-09-2015 02:21 PM
01-12-2015 12:22 PM
by Jamesw86
4 481
Has Anyone Used Plowz ?
dpld
01-08-2014 12:14 PM
01-11-2015 02:17 PM
by burtle
20 3,457
What to pay help
Bradcook21
01-07-2015 01:32 PM
01-08-2015 07:01 PM
by Steve
1 499
Need a trailer
googus
01-07-2015 09:40 AM
01-08-2015 10:24 AM
by Upscale2
7 614
Do you guys charge buy...
burtle
01-02-2015 09:58 PM
01-07-2015 08:37 PM
by Shark1611
14 984
Organic Lawn Care...
NHray
10-17-2014 07:05 PM
01-07-2015 07:05 PM
by greyhound
18 2,213
Need advice please
CHenricks
01-06-2015 01:17 AM
01-07-2015 03:34 PM
by Steve
4 579
Mowing 2 acres
Bradcook21
01-05-2015 03:13 PM
01-07-2015 03:32 PM
by Steve
9 721
» Popular Tags
2wd 4wd 4x4 aerocore apartment bid apartment complex apartment lawn care estimate applying auger bark billy goat brushcutter blades bush collections deliquentaccounts ditches employee problems equipment rental first truck flyers foreman georgia google gopherhaul grass gravely growing a lawn care business hiring husqvarna jobs john deere quik trac landscape services lawn lawn care lawn care business podcast lawn care business seo lawn care business show lawn care business website lawn care business website seo lawn care website lighting brass outdoor lights managing a lawn care business marketing mr dave mulch new mower per hour service podcast pricing pto push versus ride running a business savannah search engine optimization seo shell small engine repair snow plowing square foot starting a lawn care business steep lawns sulky theft toro toro grand stand trailer tree trimmer rack up sell employee walk behind
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 08:52 AM.


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

All times are GMT -5. The time now is 08:52 AM.

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