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.

Customer leads for sale..how much?


General Business Discussions

A place to talk about general business discussions.
Reply
 
Thread Tools Search this Thread
  #1  
Old 12-24-2008, 05:02 PM
backinblack
Guest
 
Posts: n/a
Question Customer leads for sale..how much?

I have been in business going on now almost 8 years and I am looking to sell off all of my customers as leads to a local competitor. Most of the customers have been around for 5+ years and are good solid customers.

How can I figure out how much all of the leads are worth? Also how can I figure out how much each individual customer is worth?
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 12-24-2008, 05:51 PM
EasyPro's Avatar
EasyPro EasyPro is offline
Senior Member
 
Join Date: Oct 2008
Posts: 167
Rep Power: 7
EasyPro is on a distinguished road
Default

Lawn care business tipsLawn Care Business Book
Quote:
Originally Posted by backinblack View Post
I have been in business going on now almost 8 years and I am looking to sell off all of my customers as leads to a local competitor. Most of the customers have been around for 5+ years and are good solid customers.

How can I figure out how much all of the leads are worth? Also how can I figure out how much each individual customer is worth?
I would give you 30% to 35% of the gross for the year
__________________
DJ Carroll
EasyPro Property Services
502-525-3279
Reply With Quote
  #3  
Old 12-24-2008, 06:31 PM
backinblack
Guest
 
Posts: n/a
Default

That is around what I was thinking too, but I have been asking other business leaders and owners, and they say anywhere from 1x to 3x your yearly gross. That just seems like a lot of money with no guarantee that the customer will stick around.
Reply With Quote
  #4  
Old 12-24-2008, 07:58 PM
EasyPro's Avatar
EasyPro EasyPro is offline
Senior Member
 
Join Date: Oct 2008
Posts: 167
Rep Power: 7
EasyPro is on a distinguished road
Default

Quote:
Originally Posted by backinblack View Post
That is around what I was thinking too, but I have been asking other business leaders and owners, and they say anywhere from 1x to 3x your yearly gross. That just seems like a lot of money with no guarantee that the customer will stick around.
That is is for a business you are just selling customers . . .the basic formula is 3x a business' net profit
__________________
DJ Carroll
EasyPro Property Services
502-525-3279
Reply With Quote
  #5  
Old 12-26-2008, 03:08 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 36,688
Rep Power: 10
Steve has disabled reputation
Default

Quote:
I have been in business going on now almost 8 years and I am looking to see off all of my customers as leads to a local competitor. Most of the customers have been around for 5+ years and are good solid customers.
This is interesting. Why are you selling them off as leads? Why not sell them off as customers? Have that new lawn care business owner work with you on the properties for a specific period of time and then introduce him to your customers. I bet most would stay.

Is this what you are planning on doing or are you just looking to sell your customer list and have him take it from there?
__________________
- 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 12-27-2008, 02:28 AM
backinblack
Guest
 
Posts: n/a
Default

Quote:
Originally Posted by Steve View Post
This is interesting. Why are you selling them off as leads? Why not sell them off as customers? Have that new lawn care business owner work with you on the properties for a specific period of time and then introduce him to your customers. I bet most would stay.

Is this what you are planning on doing or are you just looking to sell your customer list and have him take it from there?
Well, this is the situation. I have had a guy help me out here and there the last year with some of the accounts, subbing them out to him. But he doesn't do the quality of work that I expect, just the price. He is the only one with a flexible schedule and offers me a descent price.

So I plan on using him again this year while I am finishing everything up and the contracts expire in December 2009 even though I can personally get out of the contract, the customer can not. I am in a sense just using the guy to finish up the year for I can spend time doing other stuff. But in the mean time, I do not want to give him the accounts and I know he can not afford buying them off from me. If I had an option, I would sell the accounts before the start of the season even began to a larger local competitor that I know has the money for the accounts.

How you explain it though is that I can not really sell them as customers, because I can not sell the contracts or I should say "I won't sell the contracts" to him. I can only sell the possibility that they will stick around as customers to someone. There is no definite.
Reply With Quote
  #7  
Old 12-27-2008, 08:24 AM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 36,688
Rep Power: 10
Steve has disabled reputation
Default

Quote:
Well, this is the situation. I have had a guy help me out here and there the last year with some of the accounts, subbing them out to him. But he doesn't do the quality of work that I expect, just the price. He is the only one with a flexible schedule and offers me a descent price.

So I plan on using him again this year while I am finishing everything up and the contracts expire in December 2009 even though I can personally get out of the contract, the customer can not. I am in a sense just using the guy to finish up the year for I can spend time doing other stuff. But in the mean time, I do not want to give him the accounts and I know he can not afford buying them off from me. If I had an option, I would sell the accounts before the start of the season even began to a larger local competitor that I know has the money for the accounts.

How you explain it though is that I can not really sell them as customers, because I can not sell the contracts or I should say "I won't sell the contracts" to him. I can only sell the possibility that they will stick around as customers to someone. There is no definite.
Have you considered trying to advertise that you have your accounts for sale and see if anyone else can come in and buy them out right from you? What's your view on that, would that just be better to sell everything?
__________________
- 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 With Quote
  #8  
Old 12-27-2008, 10:38 AM
musician/lawnman's Avatar
musician/lawnman musician/lawnman is offline
Chuck
 
Join Date: Feb 2008
Location: South West Florida
Posts: 919
Rep Power: 7
musician/lawnman is on a distinguished road
Default

Yeah I'm with Steve on this one, Find someone else to sell the accounts to. If you don't have the time to dedicate to you customers anymore you owe it to them to find a way to get their service to continue at the same or higher quality that YOU'VE been providing. Don't send a 2 bit shlep there just because he's cheap. That's crap. If his work isn't up to your standards then it isn't up to theirs either, but as far as their concerned he now works for you you & it's you doing the lousy job. Sell them off. To buy contracted accounts with a year to go I would sy you should be able to get a month or maybe 2 worth of gross from them. ($100/month account ... $100 sale price) That's a typical account sale. Think about it, How many months will he have to service that account to PROFIT his $100 back? Then he obviously want's to make some money on the deal right? So 1 months gross is fair. More than that & it's not really worth it to the buyer.
__________________
AAA QUALITY CLEAN CUT, LLC.
LAWN CARE & LANDSCAPING
Visit us here:

  #9  
Old 12-27-2008, 11:23 AM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 36,688
Rep Power: 10
Steve has disabled reputation
Default

Chuck what suggestions would you have if a lawn care business owner wanted to sell his accounts and business?

Should he sell it as a package deal or separate it? Where should he advertise?
__________________
- 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 12-27-2008, 09:43 PM
backinblack
Guest
 
Posts: n/a
Default

Quote:
Originally Posted by Steve View Post
Have you considered trying to advertise that you have your accounts for sale and see if anyone else can come in and buy them out right from you? What's your view on that, would that just be better to sell everything?

I thought about advertising the accounts, but then again I am kind of scared that some of the local competition then may try to screw me over, or that my customers may find out that I am trying to sell out and get really mad about the situation
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
Walk behind for sale TnT Outdoor ervices Truck, Trailer, and Outdoor Power Equipment Discussion, Repairs. 29 04-29-2008 05:54 AM
does anyone know if you can buy landscaping leads? cwr52506 General Business Discussions 4 08-23-2007 05:49 PM
For Sale AMW Graphics Truck, Trailer, and Outdoor Power Equipment Discussion, Repairs. 4 08-16-2007 11:20 AM
Cash Reward leads to stolen equipment Steve Truck, Trailer, and Outdoor Power Equipment Discussion, Repairs. 0 04-05-2007 10:52 PM
Tracking leads? Steve General Business Discussions 7 04-07-2006 09:34 PM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
Repair or replace the...
lxarth
12-17-2014 05:07 PM
Today 12:02 PM
by SuperiorPower
11 323
Stander Vs. Zt
totalscape
12-20-2014 07:57 PM
Today 05:42 AM
by Billy Goat
6 147
Complete body therapy...
zermin
Yesterday 11:51 PM
Yesterday 11:51 PM
by zermin
0 29
Facebook
element009
03-23-2011 09:36 AM
Yesterday 04:33 PM
by stevef1201
38 9,918
Ideas on a large bid
Knaubone
Yesterday 11:57 AM
Yesterday 11:57 AM
by Knaubone
0 51
what do you "love" to...
calebmoss
07-06-2011 10:05 PM
Yesterday 12:52 AM
by rmccutchan
31 9,080
I'm BACK!
SuperiorPower
12-16-2014 11:08 PM
12-20-2014 11:33 PM
by SuperiorPower
7 275
These are the days on...
ExtremeLawncareServices
03-22-2014 10:12 AM
12-19-2014 09:45 PM
by ExtremeLawncareServices
189 16,796
Georgia Boys!
Chilehead
12-18-2014 10:23 PM
12-19-2014 09:36 PM
by Chilehead
2 133
Employee job training...
brookline
12-15-2014 08:15 PM
12-19-2014 07:48 PM
by SuperiorPower
9 379
Hello from Md
homey
12-17-2014 06:55 PM
12-19-2014 06:00 PM
by homey
5 222
Has Obamacare helped or...
Steve
12-18-2014 04:37 PM
12-19-2014 05:43 PM
by stevef1201
3 157
What Fertilizer to Use?
acrajchel
04-07-2014 02:56 PM
12-17-2014 01:11 PM
by Steve
23 3,036
Grass hopper mower
ExtremeLawncareServices
12-05-2013 09:51 AM
12-17-2014 09:40 AM
by SuperiorPower
34 6,186
Peco Bagger
AGPS
11-18-2014 02:20 PM
12-17-2014 09:13 AM
by SuperiorPower
15 1,398
New to Gopher Haul-from...
323k13l
12-12-2014 10:34 PM
12-15-2014 02:58 PM
by Steve
3 346
hi
creteland
12-12-2014 09:06 AM
12-15-2014 01:45 PM
by Steve
5 338
New addition to my small...
googus
12-12-2014 07:36 PM
12-15-2014 07:47 AM
by googus
4 415
Ferris IS700Z
rmccutchan
12-14-2014 01:10 AM
12-14-2014 11:41 PM
by rmccutchan
4 311
Charge what the market...
Billy Goat
12-09-2014 12:39 PM
12-14-2014 06:39 PM
by biglee
20 862
Hi from IL
steveinil
11-25-2014 02:07 PM
12-12-2014 07:18 AM
by steveinil
4 853
Utility Company Right of...
eastsidelandcare
12-11-2014 04:54 PM
12-11-2014 04:54 PM
by eastsidelandcare
0 325
leaf removal
Double J LLC
10-03-2014 05:24 PM
12-11-2014 04:50 PM
by eastsidelandcare
33 4,165
suggestions on full lawn...
Brian3137
12-10-2014 07:18 PM
12-11-2014 03:41 PM
by Steve
6 437
new to me box truck
jrayb39667
03-06-2014 11:20 PM
12-11-2014 09:43 AM
by Sprinkler Buddy
18 3,446
Hello from SW FL!!
5StarLawnscaping
12-05-2014 02:35 PM
12-10-2014 02:45 PM
by WesleySnips
7 682
Echo pb200 blower fuel...
googus
12-06-2014 09:03 PM
12-09-2014 06:35 PM
by Steve
3 537
Are you prepared for the...
Steve
12-02-2014 04:13 PM
12-09-2014 06:22 PM
by Steve
7 949
Email Address Name
Just Cuts
12-07-2014 09:49 PM
12-08-2014 03:15 PM
by Steve
3 481
Inspection form
stevef1201
12-07-2014 10:38 AM
12-08-2014 03:10 PM
by Steve
1 476
Truck, Trailer,...
hawthornelawncare
12-23-2011 01:01 AM
12-08-2014 12:37 PM
by jrs.landscaping
108 34,308
Back Pack Blower
Ian Lovejoy
11-09-2014 08:41 AM
12-07-2014 06:35 PM
by stevef1201
24 1,784
Innovation by mandate
bayoubandit
11-29-2014 01:33 PM
12-06-2014 03:27 PM
by SGL1
12 1,028
Trying something new,...
ExtremeLawncareServices
09-21-2014 10:07 PM
12-05-2014 11:06 AM
by Steve
9 2,315
Good help is hard to find
Hanks Lawn Care Services
11-19-2014 03:27 PM
12-04-2014 01:32 PM
by stevef1201
15 1,502
How many hours is too...
Just Cuts
12-04-2014 09:00 AM
12-04-2014 01:02 PM
by Just for Cuts
6 667
Does this sound like a...
googus
12-03-2014 07:47 AM
12-04-2014 12:37 PM
by Steve
5 740
New website
Chilehead
11-20-2014 04:39 PM
12-04-2014 12:27 PM
by Steve
14 1,275
New website
SGL1
12-02-2014 10:55 PM
12-03-2014 11:17 PM
by BLC7
19 908
Websites, how long...
Dan Tanner
03-09-2014 08:29 AM
12-03-2014 11:12 PM
by SGL1
21 3,304
I Want to buy old...
ExtremeLawncareServices
10-10-2014 11:04 PM
12-03-2014 10:36 PM
by ExtremeLawncareServices
8 1,920
GPS trackers for...
Billy Goat
12-02-2014 06:09 PM
12-03-2014 07:17 PM
by Steve
8 766
My site is on fronts page
tbtigers03
11-14-2014 05:58 PM
12-03-2014 06:31 PM
by SGL1
17 1,508
Hiring Subs over Temps
Billy Goat
12-02-2014 06:26 AM
12-03-2014 01:24 PM
by Steve
3 683
Thanksgiving cards
Steve
11-10-2008 11:57 AM
12-02-2014 11:11 PM
by SGL1
11 9,574
New parking area
ExtremeLawncareServices
11-07-2014 09:47 PM
12-02-2014 02:17 PM
by jrs.landscaping
12 1,534
Pressure Washing...
WesleySnips
07-31-2014 07:13 PM
12-02-2014 08:47 AM
by SGL1
6 1,557
old contracts
bayoubandit
11-29-2014 11:10 AM
12-01-2014 11:20 AM
by Steve
3 751
Hi to you NOTHERNERS
stevef1201
11-11-2014 05:56 PM
12-01-2014 10:54 AM
by Steve
9 1,326
Lawn care truck
Steve
10-10-2009 03:40 AM
12-01-2014 10:45 AM
by Steve
32 15,241
» Popular Tags
2wd 4x4 apartment complex bark bid blades bob villa care collections commercial decorating demonstration edging employee problems equipment rental estimate four wheel drive gopherhaul gravely growing a lawn care business hardscapes hills holiday how much to charge husqvarna hydraulic jobs labor cost 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 seo lawn care website lawn care website seo lighting lighting brass outdoor lights mr dave mulch mulch estimate new buisness new mower past due patio install per hour service podcast push versus ride running a business scag v-ride scripts seo shell small engine repair snow sprayer starting a business steve tractor auger tree trimmer rack truck new used landscape turfgrass consulting up sell employee won't return wood wright stander rh
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 12:23 PM.


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

All times are GMT -5. The time now is 12:23 PM.

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