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

Customer leads for sale..how much?


General Business Discussions

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  #21  
Old 01-04-2009, 06:46 AM
palmettoscapes llc palmettoscapes llc is offline
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more than one month really isnt fair when the client dont see the same person as befor, the same truck machine, has to send thecheck to a different address ect. the buyer will probably loose 25% of your clients right off the bat. (i lived this, and still tring to get under control)
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  #22  
Old 01-04-2009, 10:14 AM
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Originally Posted by palmettoscapes llc View Post
more than one month really isnt fair when the client dont see the same person as befor, the same truck machine, has to send thecheck to a different address ect. the buyer will probably loose 25% of your clients right off the bat. (i lived this, and still tring to get under control)
That's what I said earlier, when he asked for advice on a reasonable price to sell, I've been following this thread & imagine it will go on for a while cause they probably won't sell at 6 months gross for just that reason.
I found it kinda funny. It was like somebody saying hey maybe we could sell these cookies.... What do you think their worth?
Answer: Similar cookies sell for a buck a peice all over town.
Nope, I think I'll sell mine for $6 dollars, that way I'll make more money.
ahhhh, ok then.
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  #23  
Old 01-04-2009, 11:12 AM
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(i lived this, and still tring to get under control)
Can you tell us a little about what happened and how you resolved the issue?
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  #24  
Old 01-05-2009, 12:26 AM
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Originally Posted by musician/lawnman View Post
That's what I said earlier, when he asked for advice on a reasonable price to sell, I've been following this thread & imagine it will go on for a while cause they probably won't sell at 6 months gross for just that reason.
I found it kinda funny. It was like somebody saying hey maybe we could sell these cookies.... What do you think their worth?
Answer: Similar cookies sell for a buck a peice all over town.
Nope, I think I'll sell mine for $6 dollars, that way I'll make more money.
ahhhh, ok then.
the one main problem with your whole thought process is I am handing these customers to him on a silver platter. You are not taking that into consideration. He will not have to do any marketing at all. You are comparing apples to oranges.
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  #25  
Old 01-05-2009, 07:08 PM
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Yes, I understand that. That's what it means to "buy the accounts" from someone. I didn't think you were selling someone an opportunity to send your clients a flyer here.... ? Still you honestly think a hundred dollar account is worth $600 to somebody? Come on man? If a business can profit say 20% then a $1200 a year acount only profits $240, Unless your people are locked iron clad into a 5 year deal then the accounts can't be worth much more than $100 in reality. Who's gonna pay $600 to make $240? & that's IF they stay the full 12 months.... As someone stated above he is gonna have a drop off rate just because it's somebody new doing the work & not even from the same company. He'll probably lose 20-30% in the 1st 2 or 3 months. I know it sucks to think the accounts alone are worth so little. The equipment alone is worth what used equipment is worth, together it's a turn key package with training & all! Much better value for a young go getter to step in & buy a "profitable business". That way it's probably worth closer to your annual gross. I don't know how big your business is though so it's hard to say. I know a guy who sold a business grossing $60k a year with a 7x14 enclosed trailer, one 60 inch exmark with like 700+ hours on it, 2 trimmers, 2 blowers, & assorted hand tools for $58,000. including all accounts, books, phone numbers, training etc. I honestly though the price was a little high. I was going to buy that same business almost a year earlier, I gave him a deposit of a $1000! Then I crunched the numbers some more & decided It wasn't worth it. I walked away from my $1000 dollars! These businesses are easy to start & thus they won't sell for 2-3 years worth of gross like many other types of businesses. I built my business from scratch & topped the size of his 12 year old business in my 1st year without the $60,000 dollars in overhead from day one.... Do the math all the way through then put yourself on the other side of the table, what would you pay for it? I' not trying to be a jerk or anything, I just think your expectations for what accounts bring are a bit high bro.
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  #26  
Old 01-06-2009, 12:29 PM
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Chuck is right. From a buyers standpoint I have bought accounts before. I paid 6 weeks gross for them and experienced the 25% drop. I also dropped a few more on my own, because they were "problem customers" I think it was a positive experience, but I will never pay more than 4 weeks gross for accounts in the future. 6 months gross is outrageous, and like Chuck says takes all incentive away from the buyer. I had another gentleman that wanted me to buy his accounts at the end of last season due to him moving. He was demanding 8 weeks gross. I offered him 4 firm. He refused and to make a long story short he moved without a buyer and I am mowing some of his accounts next season anyways.
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  #27  
Old 01-06-2009, 06:43 PM
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Thank you Logan,

Like I said earlier I'm not trying to be an *** or anything. The guy "asked" a question about something he didn't know about & that's fine, this site is great for that kind of thing. But he obviously didn't like my answer... So I've been trying to explain it (as you see) several times.
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