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: 7
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: 35
Posts: 100
Rep Power: 6
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: 7
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 offline
Administrator
 
Join Date: May 2003
Posts: 37,947
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
Buy Email Lists For...
hasanali
Today 03:47 AM
Today 03:47 AM
by hasanali
0 16
To Creating an Email...
asialipi22
Today 12:17 AM
Today 12:17 AM
by asialipi22
0 23
Get to Any Business...
usaemaillist
Today 12:10 AM
Today 12:10 AM
by usaemaillist
0 20
Hello from Alabama
pruzilla
Yesterday 01:20 PM
Yesterday 04:33 PM
by Steve
1 25
Hello from Centreville!
Daveylawns
05-23-2016 09:04 AM
05-24-2016 04:08 PM
by Steve
1 57
Laying new grass, Sod...
WarriorLandscapingCAN
05-23-2016 10:07 AM
05-23-2016 08:41 PM
by Steve
1 47
I need some aeration...
rootytalbot
08-14-2015 12:32 PM
05-23-2016 09:06 AM
by Daveylawns
10 3,754
To mow weekly or Biweekly
WarriorLandscapingCAN
05-11-2016 04:09 PM
05-22-2016 11:45 AM
by jrs.landscaping
8 268
Prolin
rmccutchan
05-21-2016 04:53 PM
05-21-2016 06:36 PM
by rmccutchan
2 64
Upgraded to a new mower
Stevenor92
05-17-2016 08:17 PM
05-20-2016 07:08 PM
by Stevenor92
8 190
Intro
LaraRahmani
05-18-2016 02:54 PM
05-19-2016 02:43 PM
by Steve
2 101
Best Push Mower You Have...
markty
05-14-2016 03:46 PM
05-18-2016 07:34 PM
by Stevenor92
4 175
New mower!!!!
Stevenor92
05-18-2016 03:46 AM
05-18-2016 06:39 PM
by Stevenor92
2 104
Say Hello !!!
Steve
03-19-2007 11:18 AM
05-18-2016 02:59 PM
by LaraRahmani
1,249 434,615
Stupid idea?
hopolb33
05-13-2016 11:25 AM
05-16-2016 11:22 AM
by Steve
1 146
Planting SKYBOUND CEDARS
FrankieeLawnz
05-13-2016 03:59 PM
05-16-2016 11:21 AM
by Steve
1 130
Edging Fad...
Tree geek
05-10-2016 11:29 PM
05-15-2016 11:12 PM
by Tree geek
2 177
Business Overload
Chilehead
05-06-2016 09:27 PM
05-13-2016 11:15 AM
by Steve
11 368
Hello from great state...
Cel1980
05-11-2016 09:00 AM
05-13-2016 11:07 AM
by Steve
2 149
Did this job free to...
JJand M Lawncare
05-02-2016 02:33 PM
05-11-2016 03:54 PM
by JJand M Lawncare
10 412
How to tell Cust. to...
GeeGood
04-09-2008 09:55 PM
05-09-2016 07:08 PM
by JJand M Lawncare
16 5,504
Echo SRM 230 trouble.
Jack Rabbit
05-08-2016 06:16 PM
05-08-2016 11:22 PM
by Just for Cuts
1 143
Toro ZTR Issues
rsanchez1203
05-06-2016 09:27 PM
05-07-2016 10:26 AM
by Steve
2 167
Correct way to quote a...
WarriorLandscapingCAN
05-02-2016 11:52 AM
05-03-2016 10:59 AM
by Steve
1 277
Having an issue with...
Mr. Mow
04-27-2016 03:58 PM
04-28-2016 05:04 AM
by Sprinkler Buddy
2 284
Hello From Virginia
JJand M Lawncare
04-25-2016 01:02 PM
04-27-2016 05:20 PM
by Steve
5 326
» Popular Tags
advertising become an entrepreneur best mower be your own boss break business education business help business management buy email database contractor hacks deck lift dethatcher edging email campaigns email database email database lists email databases for sale email list email lists email lists for sale entrepreneur entrepreneur education estimates free lawn care fuel problems fuel pump half moon blade hydro increase customers jjandm lawncare landscape landscape design landscaping landscaping design company landscaping richmond va landscping lawncare lawn mowing lawnservice lowering grade marketing mulch new business planting plowing raising grade residential lawn care richmond va richmond virginia lawn care roundup safety scag snowblower snow plowing snow shovel solo solo backpack sprayer start a business start a lawn care business start business start up swzt toro timecutter tree tree pics tree service usa email list video walk behind what to charge work from home
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 06:53 AM.


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

All times are GMT -5. The time now is 06:53 AM.

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