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.

Conctract Customers - Buying or Selling


General Business Discussions

A place to talk about general business discussions.
Reply
 
Thread Tools Search this Thread
  #1  
Old 03-20-2011, 12:41 AM
The Cleaning Doctor's Avatar
The Cleaning Doctor The Cleaning Doctor is offline
Senior Member
 
Join Date: Nov 2009
Location: Helena, MT
Posts: 927
Rep Power: 5
The Cleaning Doctor is on a distinguished road
Default Conctract Customers - Buying or Selling

Lately I have noticed a lot of questions about purchasing customers from another lawn care business and one question keeps coming up in every thread.

Quote:
How many of the customers will stay with you?
I have been thinking on this a lot lately and have come up with a possible solution. In most contracts you will find a clause (no not Santa) in there that gives them the right to sell your contract to another service provider. Mortgages are the biggest example of this. Car notes are another.

What if you were to put a clause in your contract that gives you the right to sell that contract for service to another company? Would this give you more value if you should decide to resell? Can you knock down the value if there is no clause in there and you are the potential buyer?

Without that clause the customers do not have to stick with you because the contract was between them and the former service provider not you.

You might also want a clause in there that will allow you to subcontract if the need should arise. Maybe your equipment broke and the job has to get done so you call a competitor and pay them to cut? It could be any number of reasons.

I would like to hear some other thoughts on this as I am curious.
__________________
Pat
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 03-20-2011, 01:21 AM
Simpkins's Avatar
Simpkins Simpkins is offline
Senior Member
 
Join Date: Feb 2011
Location: Tri-State Area
Age: 33
Posts: 100
Rep Power: 4
Simpkins is on a distinguished road
Default

Lawn care business tipsLawn Care Business Book
Quote:
Originally Posted by The Cleaning Doctor View Post
Lately I have noticed a lot of questions about purchasing customers from another lawn care business and one question keeps coming up in every thread.



I have been thinking on this a lot lately and have come up with a possible solution. In most contracts you will find a clause (no not Santa) in there that gives them the right to sell your contract to another service provider. Mortgages are the biggest example of this. Car notes are another.

What if you were to put a clause in your contract that gives you the right to sell that contract for service to another company? Would this give you more value if you should decide to resell? Can you knock down the value if there is no clause in there and you are the potential buyer?

Without that clause the customers do not have to stick with you because the contract was between them and the former service provider not you.

You might also want a clause in there that will allow you to subcontract if the need should arise. Maybe your equipment broke and the job has to get done so you call a competitor and pay them to cut? It could be any number of reasons.

I would like to hear some other thoughts on this as I am curious.


I think this sounds like a great idea, personally! As far as knocking down the value if this clause doesn't exist, I'd say your hands are a little tied here. For example, if I were selling you customers and you beat me down to half what I was asking based on this fact, if a customer decided to go with another provider there is nothing you could do about it.

I think if you are purchasing customers and this clause doesn't exist, you can either choose to beat the price down because of it or take another route like was pointed out in some other threads (ie if a customer doesn't stay for xxx then you aren't paying for that customer). It would be a gamble going with the first option as you've already agreed to pay xx for him but if you can play on this and REALLY beat the price down, it could potentially be well worth it.

I would definitely start putting this clause in my contracts though.

Just my two cents. I'm interested to hear what others think too!
Reply With Quote
  #3  
Old 03-20-2011, 01:40 AM
The Cleaning Doctor's Avatar
The Cleaning Doctor The Cleaning Doctor is offline
Senior Member
 
Join Date: Nov 2009
Location: Helena, MT
Posts: 927
Rep Power: 5
The Cleaning Doctor is on a distinguished road
Default

Quote:
Originally Posted by Simpkins View Post
I think this sounds like a great idea, personally! As far as knocking down the value if this clause doesn't exist, I'd say your hands are a little tied here. For example, if I were selling you customers and you beat me down to half what I was asking based on this fact, if a customer decided to go with another provider there is nothing you could do about it.
You take a chance either way. How are you going to get your money back on that customer if they leave? do you thing the former owner will pay it? Some might but some will not. I personally would take the risk on a smaller investment.



Quote:
Originally Posted by Simpkins View Post
I would definitely start putting this clause in my contracts though.
I currently have a subcontract clause in mine because there are times that I do not have the time to do the writing and although I dabble in design, I am not great at it so I sub that work out.

That is just an example of how I do things. You might even consider sub contracting some pressure washing if you do not have the equipment. Better to make 10-20% than 0.
__________________
Pat
Reply With Quote
  #4  
Old 03-20-2011, 03:56 PM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 36,192
Rep Power: 10
Steve has disabled reputation
Default

The thing I wonder is this.

The service one lawn care business owner may provide to a customer can vary immensely compared to another.

So say if the original lawn care business owner really had a great hands on approach and the customers loved him.

He then sells to another company that is much larger and is only in it to mow, blow, and go.

To me, it seems that if the customer does not get that same level of care, they are going to look for another provider. How could a contract really help in such situations? I guess you could take customers to court that wanted to leave, but still? Would that be good for business?

What's your take on that?
__________________
- 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
Buying Customers LawnMedic Lawn Care Marketing & Post your marketing material for review! 13 02-25-2010 10:22 AM
Buying old vs. buying newer. rclandscaping Outdoor Power Equipment Discussion, Repairs, Buy or Sell 5 08-27-2009 04:13 PM
Buying Customers jjones41 Lawn Maintenance / Lawn Renovation 3 03-31-2009 04:20 AM
Buying Residential Customers mowboy General Business Discussions 1 06-27-2008 09:44 PM
Advice on Buying Customers mowboy General Business Discussions 0 07-19-2005 01:04 AM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
Single tree, mow customer
WesleySnips
06-27-2014 10:12 AM
Today 05:43 PM
by WesleySnips
13 526
Echo Edger 'Neutral'
WesleySnips
Today 05:28 PM
Today 05:28 PM
by WesleySnips
0 1
New from Texas
Livingston Lawn Care
Today 11:17 AM
Today 01:47 PM
by Steve
1 37
Left handed edging with...
SGL1
07-23-2014 08:59 PM
Today 01:37 PM
by Just for Cuts
9 151
You know it;s gonna be a...
stevef1201
Today 08:50 AM
Today 01:34 PM
by Steve
1 38
Customer letters
kslawn
07-23-2014 06:17 AM
Today 01:20 PM
by Steve
5 134
Texas lawn care company...
Livingston Lawn Care
Today 11:29 AM
Today 01:18 PM
by Just for Cuts
3 48
new trailer help
mattthelawnguy
07-11-2014 08:21 PM
Today 01:15 PM
by Steve
12 389
These are the days on...
ExtremeLawncareServices
03-22-2014 09:12 AM
Yesterday 10:12 PM
by ExtremeLawncareServices
77 4,393
Got my first lawn job...
SGL1
06-11-2014 09:19 PM
Yesterday 07:09 PM
by SGL1
29 1,189
Need help determining...
Jbss861
07-20-2014 02:33 PM
Yesterday 01:11 PM
by Steve
13 325
Should I ?
googus
07-22-2014 04:06 PM
Yesterday 12:10 PM
by Steve
4 169
My First Apartment...
SSLCtn
05-26-2014 10:17 PM
Yesterday 06:46 AM
by kslawn
15 864
Crop Rotation Techniques...
eastsidelandcare
07-17-2014 03:47 PM
Yesterday 06:38 AM
by kslawn
3 180
Selling lawns like...
eastsidelandcare
07-17-2014 03:51 PM
Yesterday 06:28 AM
by kslawn
3 219
Scag new "Eliminator"......
ExtremeLawncareServices
07-20-2014 10:45 AM
07-23-2014 05:37 PM
by Just for Cuts
9 251
need professional advice...
Fiddlers_green
07-20-2014 07:21 PM
07-23-2014 12:42 PM
by Steve
3 165
new to me box truck
jrayb39667
03-06-2014 10:20 PM
07-23-2014 12:40 PM
by Steve
15 1,348
Lawn Service back in...
LawnCareMan280
07-18-2014 09:00 PM
07-23-2014 11:48 AM
by Steve
4 206
Overspray?
stevef1201
07-21-2014 04:20 PM
07-23-2014 11:39 AM
by Steve
3 112
Hello Everyone! Newbie...
SLKlawn
07-17-2014 06:22 PM
07-22-2014 01:53 PM
by Steve
6 246
Proper height for lawn
rob lederhilger
05-26-2014 08:01 AM
07-21-2014 02:53 PM
by LawnDoctor
9 637
Blade sharpener
Just for Cuts
07-04-2014 12:31 PM
07-21-2014 01:48 PM
by Steve
9 465
What's my business worth?
Chaz
07-16-2014 01:35 PM
07-21-2014 01:45 PM
by Steve
4 250
1.5 Acre Jungle
WesleySnips
07-15-2014 05:57 PM
07-20-2014 11:31 AM
by ExtremeLawncareServices
21 566
Gopher schedule software
Ray
07-18-2014 04:13 PM
07-18-2014 04:13 PM
by Ray
0 142
2006 Chevy fuel pump...
KevinsLawns
07-17-2014 08:39 PM
07-18-2014 11:51 AM
by Steve
1 144
Halfway point of year!
Steve
07-01-2014 12:08 PM
07-18-2014 11:38 AM
by Steve
14 690
I got told to leave and...
gwilson98
06-16-2014 02:07 PM
07-17-2014 11:43 AM
by Steve
16 1,006
Hey guys this is the...
prmenter@gmail.com
07-07-2014 08:23 PM
07-16-2014 08:10 PM
by ExtremeLawncareServices
28 733
Mowing the hills
prmenter@gmail.com
07-08-2014 12:22 PM
07-16-2014 05:00 PM
by Just for Cuts
18 668
Say Hello !!!
Steve
03-19-2007 11:18 AM
07-15-2014 05:38 PM
by icon2000
1,184 318,988
need some help geting...
dalvan0
07-13-2014 09:28 PM
07-15-2014 11:56 AM
by Steve
5 240
Classified Ad Template...
bcfb
06-05-2013 02:40 AM
07-15-2014 11:16 AM
by Steve
15 3,680
Husqvarna pz 60
CDLAWNCARE
07-06-2014 06:50 PM
07-15-2014 08:53 AM
by kslawn
10 427
Lowballers
Chaz
07-11-2014 03:55 PM
07-14-2014 12:27 PM
by Steve
5 346
My new side job
Sprinkler Buddy
05-10-2014 05:23 AM
07-14-2014 12:15 PM
by Steve
10 806
Illegal spraying
GoGreenerKS
07-04-2014 09:11 AM
07-13-2014 10:36 PM
by GoGreenerKS
10 529
New Mower and Trailer
Chaz
06-25-2014 12:04 PM
07-13-2014 06:25 PM
by SGL1
7 535
What Fertilizer to Use?
acrajchel
04-07-2014 01:56 PM
07-12-2014 07:36 PM
by SGL1
21 1,858
Fuel and fuel additives
SGL1
07-06-2014 10:23 AM
07-11-2014 07:53 PM
by SGL1
15 523
Questions for a patchy...
jumcgee
07-09-2014 08:42 AM
07-11-2014 12:34 PM
by Steve
1 197
toro proline blades wont...
boog
06-25-2014 06:26 PM
07-11-2014 05:28 AM
by kslawn
18 631
Contents of Marketing to...
prmenter@gmail.com
07-09-2014 05:25 PM
07-10-2014 03:23 PM
by Steve
3 289
Shindaiwa
CLB454
05-13-2014 09:04 PM
07-10-2014 03:04 PM
by Steve
14 767
Starting New in FL
mmcuttrim
08-06-2010 09:22 AM
07-10-2014 02:44 PM
by Steve
48 11,242
Bid help 45 on acre...
Priggan
06-26-2014 12:56 PM
07-09-2014 08:38 AM
by kslawn
7 509
need help bidding fence...
veteranslawncaresystems
07-03-2014 10:33 AM
07-08-2014 12:00 PM
by Steve
5 373
Trimmer or Knife?
gwilson98
07-04-2014 09:56 PM
07-07-2014 02:41 PM
by Steve
6 331
Started a New Solar Lawn...
Solar Lawn Care
06-08-2013 01:40 AM
07-07-2014 01:55 PM
by Steve
37 7,409
» Popular Tags
care charge christmas lighting christmas light service collections subcontractor courtesy call credit card processing customers decorating ecosymbiosis escrow exmark ferris four wheel drive fundraiser gopherhaul grass gravely gravely 34" zero turn hills holiday honda how much to charge how to bid hydraulic kawasaki lawn lawn care business lawn care business seo lawn care business show lawn care business website lawn care business website seo lawn care website lawn service leaf removal managing a lawn care business marketing mulch estimate native plants new buisness new mower office management online classifieds outdoor environments podcast push versus ride redmax reo rotating scag scag v-ride search engine optimization season seo snow sprayer starting a business starting a lawn care business steve stihl subcontractor tips toro tractor auger trailer mate pro turfgrass consulting walker winter money making ideas wright stander rh zero turn
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 05:50 PM.


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

All times are GMT -5. The time now is 05:50 PM.

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