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 > Just starting your lawn care or landscaping business? > Starting a lawn care business.

Starting a lawn care business. How to start a lawn mowing business, lawn care business, or landscaping business. If you are starting a lawn care business, ask your questions here.

buying lawn accounts


Starting a lawn care business.

How to start a lawn mowing business, lawn care business, or landscaping business. If you are starting a lawn care business, ask your questions here.
Reply
 
Thread Tools Search this Thread
  #1  
Old 03-04-2013, 06:47 PM
wilcox_11 wilcox_11 is offline
Junior Member
 
Join Date: Feb 2013
Posts: 19
Rep Power: 2
wilcox_11 is on a distinguished road
Default buying lawn accounts

Was wondering what percentage of profit is average for buying lawn account. 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 03-04-2013, 11:22 PM
ratchetmaster2 ratchetmaster2 is offline
Senior Member
 
Join Date: Mar 2012
Posts: 185
Rep Power: 3
ratchetmaster2 is on a distinguished road
Default

Lawn care business tipsLawn Care Business Book
I'm a little confused what you're asking.


You're wondering about profit vs. initial price of buying an account?
I guess that would depend on how long you hold the account for, and what services you manage to sell
Reply With Quote
  #3  
Old 03-05-2013, 09:36 AM
wilcox_11 wilcox_11 is offline
Junior Member
 
Join Date: Feb 2013
Posts: 19
Rep Power: 2
wilcox_11 is on a distinguished road
Default

i'm asking like when someone puts there buisness up for sale. example would be they have 50 clients for $50,000 with a gross of 250,000. how do they calculate what price is right for number of clients?
Reply With Quote
  #4  
Old 03-05-2013, 10:33 AM
dpld dpld is offline
new member
 
Join Date: Jan 2012
Location: nj
Posts: 885
Rep Power: 0
dpld is on a distinguished road
Default

Quote:
Originally Posted by wilcox_11 View Post
i'm asking like when someone puts there buisness up for sale. example would be they have 50 clients for $50,000 with a gross of 250,000. how do they calculate what price is right for number of clients?

they really are not calculating anything.
they are just pulling numbers out of the @zz. most people selling a landscape business think it is worth far more then it actually is.

equipment is about the only part of a business purchase that can actually be converted into a real world value.

buying accounts on the other hand are completely different and that is where the fictional value comes in.

if the seller has no contracts then the accounts are barely worth a dime and other then a bird dog fee you would be foolish to pay them more.
if they have a signed contract and they have been a steady customer it would give more value in selling them and at that rate might be worth as much as a month and a half to 2 months value of a service contract.

sellers do not realize that they do not own their customers and with or with out him said customer is gonna be having someone cut his lawn and servicing his property and he is the one who decides who works on his property.

in the end it is a crap shoot and ultimately comes down to how much someone is willing to pay for something.

if someone is successful and is making a good living with continuous growth i would see no real logical reason to sell a business other then it is failing or mismanaged.
everyone comes up with a good excuse as to why they are selling but 99.9% of the time is they failed.

i been at it a while and this business will go on until i die even when i am retired and i will either have my children run it when they are older or i will have managers in place to run it.
there is a exception to a very small fraction of a percentage point for the few who are so successful that they have multiple businesses and they want to scale back or put more effort into the remaining businesses.

i am not saying that is the case at what you are considering but truth be told is everyday guys are starting up lawn businesses and they stick it out for a few years and build up a few dozen lawns but can not make any money and eventually sell out.
come time to sell, it is a turn key operation that takes care of itself and is ready and waiting for you to enjoy financial freedom and the american dream and if it were not for my bad back i would continue on living the dream but instead, since i am such a nice guy, i am gonna do the right thing and sell it to you and bestow the gift of financial success to you.
Reply With Quote
  #5  
Old 03-05-2013, 01:07 PM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 36,537
Rep Power: 10
Steve has disabled reputation
Default

Hi,

I'd suggest you read a lot of the buying lawn care accounts stories on here. Many of them have bought accounts and come back to post what they would have done differently. A lot of great insights and warnings.

If you are going to pay, we have seen prices average at about 1 months income for a lawn. You also better have something in place that they can't go back and market to those customers again.

Also figure a large group of them will leave once you buy it because they are family or friends of that business owner. So there are a lot of things to consider.
__________________
- 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
  #6  
Old 03-07-2013, 05:28 PM
Predator Predator is offline
Junior Member
 
Join Date: Mar 2011
Location: Baltimore
Posts: 6
Rep Power: 4
Predator is on a distinguished road
Cool Predator

Wilcox, great question. Here in the Baltimore area, I have bought out 2 companies. The asking price is usually ridiculously high as all you have is the eequip for sale in one hand and a bunch of promises in the other. We offer the seller fair market value for the pieces of equip. we want. Then we pay them the price of one weekly cut per month for 4 months after the client has paid us. So say a client pays $35 weekly for mowing. End of April, we bill $140 for mowing after the client pays us we pay seller his $35 cut, this goes on for 4 months. Your client and $ are guaranteed, no risk. Anybody else have a way, would love to hear it as our business plan revolves around buying someone out every other year.
Reply With Quote
  #7  
Old 03-08-2013, 04:21 PM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 36,537
Rep Power: 10
Steve has disabled reputation
Default

That is the first time I had heard of such a method and it sounds very creative.

Have you had any sellers balk at such a deal? If so, how did you sell them on it? Also what % of customers dropped when you bought the businesses? Have you found less dropped when you handle it this way than pay a flat price for all of them?
__________________
- 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
  #8  
Old 03-10-2013, 01:09 AM
ratchetmaster2 ratchetmaster2 is offline
Senior Member
 
Join Date: Mar 2012
Posts: 185
Rep Power: 3
ratchetmaster2 is on a distinguished road
Default

Quote:
Originally Posted by Steve View Post
Have you found less dropped when you handle it this way than pay a flat price for all of them?
I'm also curious of this aspect. I wonder how some clients would react when suddenly a different crew/company that they are unfamiliar with is mowing their lawn.
Reply With Quote
  #9  
Old 03-11-2013, 01:25 PM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 36,537
Rep Power: 10
Steve has disabled reputation
Default

I would think part of the process of buying/selling the accounts would be an introduction of the newer business owner to the customers so as to smooth out the transition process and not shock the 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
  #10  
Old 03-17-2013, 09:59 AM
Predator Predator is offline
Junior Member
 
Join Date: Mar 2011
Location: Baltimore
Posts: 6
Rep Power: 4
Predator is on a distinguished road
Default predator

Sorry it took so long to get back, gettin pretty busy here. Steve, yes every time we approach a seller with this they balk, we sit back and wait, call them every few days. When they realize they are not going to get their asking price, we usually end up getting a foot in the door and asked for a more detailed explanation. Good point on introductions, have to have them. We usually spend half of Feb. and all of March working on that. It makes people more comfortable with a transition. We have had no problem getting the seller to help because ultimately it means more $ in his pocket. we have never paid a flat fee for a business and will not, ever, there is no assurance the clients will migrate. To answer your question on %, we have had a 90% migration using our method and visiting each client personally. Hope this helps to answer some of everybody's questions, I am glad to tell you what I have experienced and I would be curious to hear about any of your buy-out techniques.
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 lawn accounts. What's a fair price? The Green Man General Business Discussions 5 02-18-2013 01:21 PM
Buying Accounts is it worth it? hawthornelawncare Online Lawn Care Estimator - Help me bid this job 4 09-19-2011 09:45 AM
Buying accounts questions cwt2112 General Business Discussions 4 08-25-2011 10:26 AM
Buying Lawn Care Accounts LOUROCK Community Assistance 2 10-19-2008 09:31 PM
Buying accounts ProCut TM Community Assistance 10 04-20-2008 10:49 PM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
Client won't pay...
WesleySnips
Yesterday 02:53 PM
Yesterday 08:21 PM
by SGlawncare
6 116
"Price...
Mr. Mow
Yesterday 03:21 PM
Yesterday 05:52 PM
by Mr. Mow
2 100
Hi Steve From West...
Mr. Mow
10-21-2014 01:59 PM
Yesterday 03:09 PM
by Mr. Mow
4 539
Business Name
sanchez5
10-28-2014 11:55 PM
Yesterday 02:15 PM
by Steve
8 248
Pavers
crieg122
10-28-2014 02:49 PM
Yesterday 02:09 PM
by Steve
5 223
Difference between lawn...
sanchez5
10-29-2014 04:20 PM
Yesterday 02:08 PM
by Steve
2 162
Gie-review / What's new...
ExtremeLawncareServices
10-25-2014 09:19 AM
Yesterday 02:04 PM
by Steve
6 430
My Newest Toy (B.P....
Dan Tanner
10-23-2014 05:50 PM
10-29-2014 12:26 PM
by Steve
6 521
West cost lawn prices
SGlawncare
10-09-2014 09:51 PM
10-28-2014 11:08 PM
by SGlawncare
4 875
Say Hello !!!
Steve
03-19-2007 11:18 AM
10-28-2014 02:51 PM
by Steve
1,193 341,051
Help a brother...
tbtigers03
09-28-2014 11:41 AM
10-28-2014 02:38 PM
by Steve
14 1,913
Business Cards
crieg122
10-25-2014 12:03 PM
10-28-2014 02:37 PM
by crieg122
4 390
Lawn Care business...
crieg122
10-23-2014 01:23 PM
10-28-2014 11:28 AM
by crieg122
15 700
So how do you guys...
Mr. Mow
10-26-2014 07:55 AM
10-28-2014 04:56 AM
by Billy Goat
2 330
Pressure Washing Like a...
TNTurf
08-01-2014 11:47 PM
10-27-2014 10:36 PM
by SGlawncare
12 1,246
new to the forum
madmedic8575
10-24-2014 02:52 PM
10-27-2014 12:14 PM
by Steve
1 341
Dealing With Gas Can...
Mr. Mow
10-21-2014 01:41 PM
10-26-2014 10:59 AM
by stevef1201
13 711
Leaf removal
madmedic8575
10-24-2014 04:14 PM
10-26-2014 07:45 AM
by Mr. Mow
5 474
raking leaves ?
robert8509
10-22-2014 09:19 PM
10-25-2014 12:09 PM
by biglee
10 617
Leaf Box & Loader Set...
ringahding1
10-21-2014 06:20 AM
10-25-2014 11:46 AM
by crieg122
6 613
hey everyone
robert8509
10-22-2014 08:16 PM
10-24-2014 11:07 PM
by robert8509
7 509
12 Years in Business!
Chilehead
10-23-2014 08:07 AM
10-23-2014 11:08 PM
by Chilehead
2 434
Cheapskate Landlord...
Mr. Mow
10-20-2014 06:33 AM
10-23-2014 05:55 PM
by biglee
13 765
Hi from SoCal
Jmoney
10-23-2014 11:29 AM
10-23-2014 12:51 PM
by Steve
1 393
Workmans compensation...
CDLAWNCARE
10-15-2014 08:05 AM
10-23-2014 12:33 PM
by Steve
5 862
Pda
stevef1201
10-18-2014 02:05 PM
10-23-2014 06:12 AM
by ringahding1
4 689
Hello, from TEXAS
sanchez5
10-17-2014 09:56 PM
10-22-2014 01:27 PM
by Steve
6 751
Organic Lawn Care...
NHray
10-17-2014 06:05 PM
10-22-2014 01:23 PM
by Steve
3 719
first year update
cmdlawncare
08-12-2014 05:41 PM
10-22-2014 07:47 AM
by ringahding1
4 1,711
What parts do you carry...
Just for Cuts
10-17-2014 09:08 AM
10-21-2014 01:36 PM
by Mr. Mow
16 1,002
Jungle to Beautiful
stevef1201
10-17-2014 09:54 AM
10-21-2014 01:26 PM
by stevef1201
11 860
These are the days on...
ExtremeLawncareServices
03-22-2014 09:12 AM
10-21-2014 01:19 PM
by ExtremeLawncareServices
158 11,972
Sunny Beach Tennis...
SGL1
10-19-2014 11:24 PM
10-21-2014 01:04 PM
by SGL1
4 590
Have you ever had to...
SouthernRootsLawnCare
07-26-2014 02:41 PM
10-20-2014 08:34 PM
by biglee
10 2,184
Look out Bob Villa -...
Mr Dave
09-30-2014 10:06 AM
10-20-2014 05:42 PM
by SGL1
7 1,676
how to fi d commercial...
mchampion319
10-19-2014 09:50 PM
10-20-2014 04:41 PM
by Steve
1 560
Hello From Tennessee
mrmann901
10-17-2014 10:02 PM
10-20-2014 04:24 PM
by Steve
1 627
questions on order to...
jack2048
10-13-2014 11:15 AM
10-20-2014 03:27 PM
by Mr. Mow
15 1,083
This sucks...
Matther777
09-18-2014 04:56 PM
10-20-2014 02:14 PM
by Steve
14 2,610
Cement mixer
KevinsLawns
10-15-2014 08:03 PM
10-20-2014 02:11 PM
by Steve
7 810
Hello ! New guy Rob here
RWorthley1
10-17-2014 04:05 PM
10-20-2014 02:09 PM
by Steve
1 660
Snow Blowing
gwilson98
10-12-2014 02:21 PM
10-17-2014 02:51 PM
by Steve
6 1,003
Spreading Weeds?
WesleySnips
07-27-2014 09:46 PM
10-17-2014 07:49 AM
by SGL1
6 1,302
Grasswhoopins.com Anyone...
GRASS WHOOPINS
06-21-2011 11:38 PM
10-16-2014 01:30 PM
by ExtremeLawncareServices
42 9,708
I Want to buy old...
ExtremeLawncareServices
10-10-2014 10:04 PM
10-15-2014 09:12 PM
by ExtremeLawncareServices
6 1,016
Do you find weed eating...
chuck2s
10-15-2014 02:10 PM
10-15-2014 02:10 PM
by chuck2s
0 742
Incorporating &...
WesleySnips
10-01-2014 09:39 PM
10-15-2014 01:37 PM
by kslawn
20 1,874
Falling into business
stellarmowing
09-28-2014 04:35 PM
10-15-2014 05:57 AM
by ringahding1
8 1,865
Apartment Complex and...
lxarth
06-22-2011 01:10 PM
10-14-2014 06:25 PM
by jrs.landscaping
42 9,999
I LOVE hedge trimming
stevef1201
10-13-2014 09:05 AM
10-14-2014 01:06 PM
by Steve
5 875
» Popular Tags
4wd aerocore apartment bid apartment lawn care estimate applying article marketing bid billy goat brushcutter blades bush charge collections subcontractor decorating deliquentaccounts ditches employee problems equipment rental estimate exmark ferris first truck foreman georgia gopherhaul gravely growing a lawn care business honda how much to charge husqvarna hydraulic installation introduction landscape services lawn lawn care lawn care business lawn care business seo lawn care business show lawn care business website lawn care business website seo lawn care website marketing mechanic monthly mulch mulch price new business new mower ordinance podcast reo running a business scag scag v-ride search engine optimization seo shreaded snow snow plowing starting a business start up lawn care business steep lawns steve stihl theft of services toro trailer truck new used landscape walker won't return
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 01:06 AM.


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

All times are GMT -5. The time now is 01:06 AM.

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