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.

Buying lawn accounts. What's a fair price?


General Business Discussions

A place to talk about general business discussions.
Reply
 
Thread Tools Search this Thread
  #1  
Old 02-11-2013, 02:38 PM
The Green Man The Green Man is offline
Junior Member
 
Join Date: Feb 2013
Posts: 2
Rep Power: 4
The Green Man is on a distinguished road
Default Buying lawn accounts. What's a fair price?

Hello everyone. I've started my own Landscaping business and I'm about to go into my 3rd season. I want to purchase some Residential and Commercial accounts and was wondering what you all thought would be a fair price to pay. I saw someone selling 65 accounts with about $12,000 worth of equipment for $30,000. Way more than what I want to get into so what do you think I should spend for like 15 accounts that are in the 35-45 dollar a cut size range? also, What should I be spending for individual accounts? Any help is appreciated. 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 02-11-2013, 04:03 PM
dpld dpld is offline
new member
 
Join Date: Jan 2012
Location: nj
Posts: 885
Rep Power: 0
dpld is on a distinguished road
Default

Lawn care business tipsLawn Care Business Book
buying someone else's accounts is a tricky deal.
sometimes it works out great but most of the time it ends up a disaster.

most guys that sell their accounts have them valued far higher then they are worth and don't take into consideration that until the work is done and the customer retains them that it is all speculation.

like i said, there are some situations that work out well but they are far and few between and the first thing i always say is, if it is doing so good or makes that kind of money then why are you selling?

i look all the time at ad's that have businesses up for sale and although i would never buy one i always laugh at the excuses as to why they are selling like " owner is retiring " and the dude is 45 or " pursuing other ventures " and the owner is just getting a job with someone.

i have also seen guys that have a gazillion lawns every three years put a list together of all the garbage accounts they want to unload and make up some story as to they are retiring or down sizing.

i know the prospects of buying a business may appear to be instant satisfaction but the only true real way to build it up is through traditional means by way of marketing and word of mouth.
it may take longer but the results are usually far better.
Reply With Quote
  #3  
Old 02-12-2013, 11:59 AM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 37,821
Rep Power: 10
Steve has disabled reputation
Default

Quote:
I saw someone selling 65 accounts with about $12,000 worth of equipment for $30,000.
$30,000 - $12,000 = $18,000

$18,000 / 65 = $276 per customer

Say these are $35 a mow

$276 / $35 = 7.8

So this lawn care business owner is valuing the customers at about 7.8 cuts or two month's income per customer. Would he accept 1 month? (4 x $35) = $140?

If they were decent clients with decent lawns and you felt you could keep them after they were 'sold' to you. Would 1 month's income make it worth while to you?

Do you know what your current cost is to acquire a new 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
  #4  
Old 02-17-2013, 05:14 PM
The Green Man The Green Man is offline
Junior Member
 
Join Date: Feb 2013
Posts: 2
Rep Power: 4
The Green Man is on a distinguished road
Default

For $140 per customer that would be worth it to me. I figured someone would want to sell each individual account for around 150-200 which I think is a fair price especially if you want to look at it like you just gave them a free month of mowing. As of now I can't purchase the guys business but I would like to acquire at least 10 more solid this season. Not trying to be a "big" company. Would like to keep it around 25-30 customers so I can handle it myself with a part time employee.
Reply With Quote
  #5  
Old 02-18-2013, 09:53 AM
stevef1201 stevef1201 is offline
Senior Member
 
Join Date: Apr 2010
Location: Central Florida
Posts: 1,236
Rep Power: 7
stevef1201 is on a distinguished road
Smile

There is a guy around here (I know him), who every year buys some used equipment, signs up a bunk of 'accounts', then sells the business. The poor slob that buys them then has to do them at the rate quoted by the seller. LOSE money with every cut! ( I know he told me he gets these accounts by bidding 4 and 5 dollars per cut for mobile home parks and 10 dollar cuts for residential) He makes great money each year 'selling' the business. You have to be very careful when buying someone else's accounts. Why not just let him go out of business and advertise to his customers?
Reply With Quote
  #6  
Old 02-18-2013, 02:21 PM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 37,821
Rep Power: 10
Steve has disabled reputation
Default

Quote:
For $140 per customer that would be worth it to me
How much are you currently spending to acquire customers? Do you know how much you are spending in your marketing and how many customers have come from it? you can divide those figures and find your cost to acquire each customer.

Then you can compare that value with the potential cost to buy these customers.
__________________
- 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
Buy a good company at a fair price and hold it. Steve Money, Finances, Stocks, Bonds, & Investments. 2 08-01-2014 02:44 PM
whats a fair price? LawnBoy0311 Online Lawn Care Estimator - Help me bid this job 2 07-30-2012 11:30 AM
Buying Lawn Care Accounts LOUROCK Community Assistance 2 10-19-2008 10:31 PM
What is the fair price for this job? Jimmypop Online Lawn Care Estimator - Help me bid this job 1 06-06-2008 02:55 AM
Buying accounts ProCut TM Community Assistance 10 04-20-2008 11:49 PM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
back surgery
Bradcook21
01-28-2016 08:51 PM
Today 02:04 PM
by Bradcook21
16 394
Help Spread the word...
Sprinkler Buddy
12-02-2015 08:41 AM
Today 08:19 AM
by Sprinkler Buddy
19 1,306
Howdy Yall !!!
B&C
Yesterday 10:06 AM
Today 01:05 AM
by Steve
1 30
hello
2menandmowers
Yesterday 07:32 AM
Today 12:53 AM
by Steve
1 31
Best two stroke oil
Greg_TopYardServices
02-08-2016 07:53 PM
Today 12:51 AM
by Steve
8 127
Hello everyone!!!
1newkirk05
02-09-2016 03:16 PM
Yesterday 04:05 PM
by jrs.landscaping
7 128
Tine Rake Detaching vs...
wigglesworth
02-09-2016 05:32 PM
02-09-2016 07:43 PM
by Steve
1 49
Finding open bids?!?
C&DPropertyManagement
02-07-2016 01:48 AM
02-09-2016 07:11 PM
by Steve
3 121
hello all
romanlandscape
01-29-2016 03:46 PM
02-07-2016 10:20 AM
by Bradcook21
6 226
Lawn Care Book Ranked #1
Steve
02-06-2016 12:36 AM
02-06-2016 12:36 AM
by Steve
0 107
Hi
Sellers Lawn Care
02-02-2016 01:48 PM
02-05-2016 08:03 AM
by Sellers Lawn Care
4 174
Collecting payments from...
Niagara Mowing
02-03-2016 05:21 PM
02-05-2016 08:00 AM
by Niagara Mowing
7 228
SMS assist? The good,...
jcurr33
01-27-2016 10:24 PM
02-04-2016 11:53 PM
by Steve
5 259
I need some help...
Anise
02-04-2016 01:39 PM
02-04-2016 11:51 PM
by Steve
3 135
Customers dodging the...
Rocky
11-06-2015 06:22 AM
02-04-2016 03:41 AM
by C&DPropertyManagement
7 1,508
Offering a "Trial"...
wybut076
02-01-2016 06:27 PM
02-03-2016 08:26 PM
by Just for Cuts
7 257
Iowa Caucus Predictions?
Steve
02-01-2016 06:31 PM
02-03-2016 12:40 AM
by Steve
1 115
Laying White River Rock
DiamondLawnCare
02-01-2016 08:27 PM
02-03-2016 12:17 AM
by Steve
1 137
Networking for a...
jcurr33
01-30-2016 09:26 PM
02-01-2016 06:27 PM
by Steve
4 213
Customer giving a 1099?
apmAkron
01-27-2016 07:22 PM
01-31-2016 08:55 PM
by Chilehead
6 272
happy to be here
redrobin
01-29-2016 10:45 AM
01-31-2016 08:44 PM
by Steve
1 149
Thought's on an "E-Z...
jcurr33
01-27-2016 10:48 PM
01-31-2016 08:38 PM
by Steve
4 245
Changes
Knaubone
01-30-2016 10:56 PM
01-31-2016 08:31 PM
by Steve
1 137
Thoughts on this Exmark...
googus
01-28-2016 04:24 PM
01-28-2016 08:09 PM
by Chilehead
1 159
1st year in
jcurr33
10-18-2015 05:07 PM
01-28-2016 07:49 PM
by Chilehead
6 4,152
Need opinion on zero...
Mr. Mow
01-24-2016 05:42 PM
01-28-2016 07:41 PM
by Chilehead
10 373
Opinion on liquid vs...
Bradcook21
01-25-2016 02:03 PM
01-28-2016 07:38 PM
by Chilehead
9 319
Finding property size
Gageslawncare
01-25-2016 11:08 AM
01-28-2016 12:05 PM
by Gageslawncare
10 334
Tiger TG 2661 Commercial...
lawnman1959
01-25-2016 08:12 PM
01-27-2016 07:57 PM
by Just for Cuts
5 259
Spouse as a dependent?
Steve
01-26-2016 01:51 AM
01-27-2016 10:44 AM
by Chilehead
3 213
Hello All
C&DPropertyManagement
01-23-2016 12:21 PM
01-26-2016 01:24 AM
by Steve
1 187
Credit Cards - What's in...
Shark1611
06-16-2015 04:04 PM
01-23-2016 03:43 PM
by C&DPropertyManagement
17 7,699
Start My Own Business?
mowandblow1980
01-12-2016 08:43 PM
01-19-2016 07:00 PM
by Steve
12 659
State of the nation 2016.
Steve
01-12-2016 12:05 AM
01-19-2016 06:57 PM
by Steve
6 398
little help? first big...
Brian3137
12-31-2015 12:39 PM
01-19-2016 06:54 PM
by Steve
23 1,106
Hi everybody...
Greg_TopYardServices
01-14-2016 08:10 AM
01-19-2016 02:47 PM
by SC93
12 467
What's your next...
Steve
05-15-2015 12:54 PM
01-17-2016 08:48 PM
by Homeland unlimited
25 7,937
Plow controller problems
scaypa
01-12-2016 05:49 PM
01-16-2016 10:46 AM
by scaypa
4 304
Say Hello !!!
Steve
03-19-2007 12:18 PM
01-15-2016 07:23 PM
by tannerduncan
1,244 428,185
Pricing issue
Mr. Mow
07-07-2015 07:15 AM
01-15-2016 11:20 AM
by djlandscaping06
23 5,434
New College Course
Dr. D
01-14-2016 01:45 PM
01-14-2016 05:35 PM
by Steve
1 223
Yelp
Shark1611
01-13-2016 10:00 AM
01-14-2016 05:32 PM
by Steve
4 277
New to the forum from...
Doug Green
01-12-2016 12:23 PM
01-14-2016 08:34 AM
by Doug Green
2 262
Facebook advertising
Just for Cuts
12-13-2015 08:49 AM
01-13-2016 10:20 PM
by Just for Cuts
12 947
Choosing local business
Doug Green
01-12-2016 12:29 PM
01-13-2016 06:12 PM
by Steve
2 426
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 03:27 PM.


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

All times are GMT -5. The time now is 03:27 PM.

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