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: 6
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: 34
Posts: 100
Rep Power: 5
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: 6
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: 37,356
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 Truck, Trailer, and Outdoor Power Equipment Discussion, Repairs. 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
Things your lawn care...
Steve
Today 11:48 AM
Today 11:48 AM
by Steve
0 16
I can't believe people...
ExtremeLawncareServices
05-25-2015 10:29 AM
Today 11:45 AM
by jrs.landscaping
9 211
Show us your stripes
Just for Cuts
05-21-2015 03:07 PM
Today 11:35 AM
by Steve
5 157
What a JERK!
Chilehead
05-06-2015 08:13 AM
Today 11:28 AM
by Steve
14 736
Pissed off customers
stonegatedesigns
Yesterday 05:29 PM
Today 11:26 AM
by Steve
3 95
Great start to the season
jcurr33
05-25-2015 08:49 PM
Yesterday 01:50 PM
by Steve
2 76
uploading video on here?
holymoly
05-24-2015 08:13 AM
Yesterday 01:37 PM
by Steve
2 85
new here ! need help
pgrace
05-23-2015 11:29 PM
Yesterday 01:35 PM
by Steve
1 90
Equipment dealers
mattthelawnguy
05-21-2015 04:33 PM
Yesterday 01:32 PM
by Steve
4 139
What's your next...
Steve
05-15-2015 11:54 AM
Yesterday 01:25 PM
by Steve
14 380
problems with a customer
LawnCareMan280
05-19-2015 06:28 PM
Yesterday 01:22 PM
by Steve
5 201
More Rain or Less?
Steve
05-20-2015 12:06 PM
05-24-2015 04:37 PM
by SGL1
12 268
Irrigation
pboy8634
02-21-2010 12:46 PM
05-22-2015 10:05 PM
by biglee
25 8,451
Beginner Mistakes:...
Steve
01-31-2007 11:45 AM
05-22-2015 09:58 PM
by biglee
37 9,175
Peace garden ideas
SGL1
05-13-2015 03:15 PM
05-21-2015 07:51 PM
by avetslawncare
16 519
These are the days on...
ExtremeLawncareServices
01-11-2015 10:41 AM
05-20-2015 09:18 PM
by ExtremeLawncareServices
84 6,839
Total yard rehab
SGL1
04-23-2015 03:59 PM
05-19-2015 08:22 PM
by SGL1
15 824
Say Hello !!!
Steve
03-19-2007 11:18 AM
05-19-2015 04:12 PM
by NinaMarie86
1,223 389,959
New Lawn Service
carmelitaslawnservice
05-19-2015 10:02 AM
05-19-2015 02:51 PM
by Steve
1 126
Landscaper Jailed After...
SGL1
05-18-2015 08:15 AM
05-19-2015 02:37 PM
by Steve
5 229
Pictures of commercial...
avetslawncare
04-01-2015 09:47 PM
05-19-2015 02:29 PM
by Steve
38 2,028
feeling like im being...
Bradcook21
05-17-2015 07:33 AM
05-19-2015 02:11 PM
by Steve
6 235
good news yesterday
Bradcook21
05-17-2015 07:08 AM
05-19-2015 06:16 AM
by Bradcook21
3 166
ignition coil
jasonw
05-12-2015 05:31 PM
05-18-2015 12:07 PM
by Steve
3 281
Anyone need help? I have...
biglee
05-06-2015 12:22 PM
05-18-2015 12:06 PM
by Steve
13 711
Big (to me) mulch job
tl757
04-23-2015 05:32 PM
05-15-2015 08:46 PM
by biglee
22 1,515
big dog mowers?
Bradcook21
05-13-2015 04:03 PM
05-14-2015 10:55 AM
by Steve
4 304
Small HOA Bid
lxarth
05-06-2015 10:37 PM
05-13-2015 11:55 AM
by Steve
9 530
New company in Michigan
SEM
04-24-2015 09:27 PM
05-13-2015 11:51 AM
by Steve
11 662
Fired for refusing to...
Mr. Mow
05-09-2015 06:15 AM
05-12-2015 01:36 PM
by Steve
6 524
I have ZERO confidence...
Just for Cuts
05-01-2015 04:24 PM
05-12-2015 03:53 AM
by jrs.landscaping
31 1,130
landscape insurance
clarkslawn
03-30-2015 10:14 PM
05-11-2015 01:15 PM
by Steve
6 1,041
String trim BEFORE mow...
Mr. Mow
04-12-2015 08:13 AM
05-10-2015 07:50 PM
by ExtremeLawncareServices
9 1,083
Bought my first STIHL...
Mr. Mow
05-09-2015 06:29 AM
05-10-2015 08:36 AM
by Mr. Mow
9 435
advice wanted please and...
CHenricks
05-07-2015 08:40 PM
05-08-2015 04:20 PM
by CHenricks
7 448
Hello
SallyBorowicz
05-06-2015 11:14 AM
05-08-2015 02:21 PM
by Steve
3 359
Mower Advice
tl757
05-06-2015 02:31 PM
05-08-2015 01:45 PM
by Steve
6 486
Home today...Still...
biglee
05-06-2015 11:59 AM
05-07-2015 12:06 PM
by biglee
2 364
I'm Back With The Best...
aduttonater
02-21-2015 12:41 AM
05-07-2015 11:17 AM
by Steve
79 4,014
color fliers?
holymoly
04-18-2015 02:32 PM
05-07-2015 10:57 AM
by Steve
16 1,053
Looking good
mrsmichigan
05-06-2015 09:47 AM
05-07-2015 10:53 AM
by Steve
1 306
What are your biggest...
Steve
05-05-2015 01:24 PM
05-07-2015 10:52 AM
by Steve
2 358
is craiglist good to...
JBENI
04-16-2015 11:11 AM
05-06-2015 07:15 PM
by TheYardGuy
12 1,141
Go daddy web site and...
jcurr33
05-04-2015 06:00 PM
05-05-2015 11:57 AM
by Steve
2 385
How busy are you now?
Steve
05-04-2015 01:10 PM
05-05-2015 11:47 AM
by Steve
4 420
mowfinder
scaypa
04-27-2015 05:44 PM
05-04-2015 01:14 PM
by Steve
1 446
Latest video, Facebook...
Sprinkler Buddy
05-01-2015 06:54 AM
05-04-2015 01:09 PM
by Steve
3 418
weed
avetslawncare
04-16-2015 07:56 PM
05-01-2015 11:38 AM
by Steve
8 831
so i need somehelp with...
dalvan0
04-28-2015 07:43 PM
04-30-2015 10:55 PM
by avetslawncare
3 727
Anyone have a Lawn Care...
nishirandall
04-28-2015 08:45 PM
04-30-2015 12:00 AM
by Steve
1 491
» Popular Tags
ad landscaping aerocore apartment bid apartment complex auger bark billy goat brushcutter blades blowout bush collections contract help curb appeal services deliquentaccounts ditches edging employee problems equipment dealer equipment rental facebook flyers foreman google grass growing a lawn care business hardscapes hills hiring husqvarna john deere quik trac landscape landscape services landscaping training lawn lawn care lawn mowing marketing marketing secrets more customers business mr dave mulch past due per hour charge per hour service pricing profit on employee pto push versus ride running a business scag scripts sell the vision seo shell small engine repair square foot starting a lawn care business steep lawns swzt theft toro grand stand trailer tree trimmer rack truck new used landscape up sell employee web design website won't return www.greenturion.co.za
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 02:26 PM.


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

All times are GMT -5. The time now is 02:26 PM.

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