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Online Lawn Care Estimator - Help me bid this job
If you need help coming up with a bid for a lawn care, landscaping, tree cutting or irrigation job, post the specifics here and pictures of the job site. If you are looking to learn about bidding, review the jobs posted here.

Purchasing 18 maintenance accounts


Online Lawn Care Estimator - Help me bid this job

If you need help coming up with a bid for a lawn care, landscaping, tree cutting or irrigation job, post the specifics here and pictures of the job site. If you are looking to learn about bidding, review the jobs posted here.
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  #1  
Old 07-15-2008, 12:31 AM
btevans01@yahoo.com btevans01@yahoo.com is offline
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Cool Purchasing 18 maintenance accounts

Someone has offered to sell me 18 of their maintenance accounts for $3,000.00. He makes $3,000.00. He just does the maintenance, no chemical applications. None of the accounts have contracts. That kind of worries me! What do you guys think about this?
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Old 07-15-2008, 01:38 AM
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I'd be hesitant of them not having contracts...maybe have the deal worked out so that each account has a price assigned to it, and then if the person leaves, you don't pay for that account? If he would go for that...
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Old 07-15-2008, 07:35 AM
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What is your biggest concern on this? The price or if the customers will stay with you?

Check out this blog post on buying lawn care accounts and let me know if it is helpful.

http://lawnchat.com/?p=51

Also if you do go through this make sure he signs a non-compete contract so he can't go back and solicit the customers he sold to you.
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Old 07-15-2008, 07:23 PM
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Cool 18 accounts reply

The fact that none of the accounts have contracts really bothers me! I don't really feel comfortable buying accounts without contracts! I think I'm going to pass on this, but I will do a little more research first before I definitely decide not to.
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Old 07-15-2008, 11:10 PM
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Default The calculator tells the story.

$3000 / 18 customers = $166/customer.

Instead of taking the easy way out by buying a customer list, why not spend a couple thousand dollars on marketing in order to build your own customer list.

I guarantee that "paid-for" customers are far less loyal than customers you cultivate through advertising.


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Old 07-16-2008, 01:01 AM
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Quote:
Originally Posted by StartALawnCareBusiness View Post
$3000 / 18 customers = $166/customer.

Instead of taking the easy way out by buying a customer list, why not spend a couple thousand dollars on marketing in order to build your own customer list.

I guarantee that "paid-for" customers are far less loyal than customers you cultivate through advertising.


Keith

I have talked to several lawn care operators here in my area to see if they use contracts or not on there clients. Some of them say they do contracts and some say they dont. They say most of the high people that pay good are very loyal to what they say about doing it year around with no contract.

i dont do contracts, but i have been thinking i should to save me in the winter months and all( have money coming in, with less work)
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Old 07-16-2008, 09:32 AM
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Quote:
$3000 / 18 customers = $166/customer.
You know this brings up a good point.

btevans01, do you know what your average customer acquisition cost is? How does it compare with the $166 Keith pointed out?
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Old 07-16-2008, 10:45 AM
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Cool Customer aquisition average

It is lower than our average customer's pay, and the seller says they are high end accounts! Doesn't sound right to me.
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Old 07-16-2008, 10:59 AM
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Well tell me this, at what price would you jump on it?
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Old 07-16-2008, 06:39 PM
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I'd never pay more than 1 months gross & with no contracts I might make it 2 weeks gross. Though I've never bought an account & probably never will.

You'd like to think nobody would rip you off buy consider this....
Times are tough & people (some lco's included) are hurting.

So some lco & his business are going down the tubes, he's broke & jaded that his business isn't making him rich.... He decides to close down & then it occurs to him he can probably sell the few accounts he has! He wondering how much he can get for em!? could it get him out of debt? No he doesn't have enough accounts to sell. So he has an idea, he goes to 10-15 friends & says hey man, I'll pay you / get your lawn cut for free a couple times if you go with me on this.. your my customer & have been on my list for a while ok?
He gives his friend say $60 to pay the new guy a time or 2 then drop em.
You come along & pay him $166 per account. He just made $106 per account (over $1900) & you bought a failing business.

I'm not saying this is the case here but I've heard of it happening. SO BE CAREFUL.
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