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, 04:02 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, 04:51 PM
EasyPro's Avatar
EasyPro EasyPro is offline
Senior Member
 
Join Date: Oct 2008
Posts: 167
Rep Power: 6
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, 05:31 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, 06:58 PM
EasyPro's Avatar
EasyPro EasyPro is offline
Senior Member
 
Join Date: Oct 2008
Posts: 167
Rep Power: 6
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, 02:08 PM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 35,779
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, 01:28 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, 07:24 AM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 35,779
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, 09:38 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, 10:23 AM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 35,779
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, 08:43 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 Outdoor Power Equipment Discussion, Repairs, Buy or Sell 29 04-29-2008 04:54 AM
does anyone know if you can buy landscaping leads? cwr52506 General Business Discussions 4 08-23-2007 04:49 PM
For Sale AMW Graphics Outdoor Power Equipment Discussion, Repairs, Buy or Sell 4 08-16-2007 10:20 AM
Cash Reward leads to stolen equipment Steve Outdoor Power Equipment Discussion, Repairs, Buy or Sell 0 04-05-2007 09:52 PM
Tracking leads? Steve General Business Discussions 7 04-07-2006 08:34 PM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
New customers keep...
stevef1201
Yesterday 05:34 PM
Yesterday 09:54 PM
by BelleCityLawn1
3 70
Pushy customers
christopherhicks82
04-22-2014 08:22 PM
Yesterday 07:41 PM
by t-10yrs2retire
10 226
New Trailer
bobwill2009
04-23-2014 12:46 PM
Yesterday 01:34 PM
by B&B Lawn Services
4 108
Back for this year
xandrew245x
02-21-2014 04:30 PM
Yesterday 12:46 PM
by xandrew245x
20 1,044
Truck, Trailer,...
hawthornelawncare
12-23-2011 12:01 AM
Yesterday 12:39 PM
by Steve
80 25,401
Pond...
xandrew245x
04-22-2014 03:29 PM
Yesterday 12:23 PM
by Steve
5 126
Mangwi Landscaping
bondservojc13
04-23-2014 09:56 PM
Yesterday 12:22 PM
by Steve
2 84
Acerage Rake
acrajchel
04-23-2014 07:23 PM
Yesterday 12:17 PM
by Steve
1 55
2.5 acre mowing
xandrew245x
04-18-2014 06:55 AM
Yesterday 12:05 PM
by Steve
16 380
Advertising On...
JacobsLawnMowing
03-17-2014 03:21 PM
Yesterday 11:58 AM
by Steve
14 913
In a bit situation need...
googus
04-22-2014 08:01 AM
04-23-2014 10:03 PM
by googus
9 188
Any greenhouse operators...
GoGreenerKS
04-15-2014 11:21 AM
04-23-2014 12:37 PM
by Steve
7 228
The $20 Mow Job
Dan Tanner
04-21-2014 07:24 PM
04-23-2014 12:06 PM
by Steve
5 208
quickbooks users
CDLAWNCARE
04-20-2014 09:03 AM
04-23-2014 06:48 AM
by CDLAWNCARE
4 185
Looking for advice on a...
Tekeda1
04-13-2014 09:53 AM
04-22-2014 07:55 PM
by Just for Cuts
23 593
About D@## Time!
TamMik
04-02-2014 08:10 AM
04-22-2014 05:14 PM
by BelleCityLawn1
19 886
What Was Your Setup When...
superrman77
02-11-2014 10:53 AM
04-22-2014 12:29 AM
by Tony317
22 1,737
Sulky and Turf Tracer
acrajchel
04-07-2014 01:44 PM
04-22-2014 12:07 AM
by Tony317
9 451
danny 2
danny2
04-19-2014 10:19 PM
04-21-2014 12:25 PM
by Steve
3 141
this mower is driving me...
boog
04-17-2014 12:07 PM
04-21-2014 12:10 PM
by kslawn
13 378
What Fertilizer to Use?
acrajchel
04-07-2014 01:56 PM
04-21-2014 12:02 PM
by kslawn
20 624
I Got Taken...,
Dan Tanner
04-19-2014 06:26 AM
04-21-2014 11:49 AM
by Steve
4 235
new to this forum!
mower13126
04-18-2014 07:37 PM
04-21-2014 11:39 AM
by Steve
4 157
REO calling
Dan Tanner
04-16-2014 05:03 PM
04-21-2014 11:33 AM
by Steve
12 361
employee pay
4 seasons maintenance
04-10-2011 09:34 PM
04-20-2014 04:40 PM
by Dan Tanner
20 6,902
These are the days on...
ExtremeLawncareServices
03-22-2014 09:12 AM
04-20-2014 11:13 AM
by ExtremeLawncareServices
32 1,229
Lawn Renovation
stevef1201
04-11-2014 12:00 PM
04-20-2014 11:11 AM
by kslawn
10 381
Customers droping like...
goodtimez
04-18-2014 09:53 AM
04-19-2014 08:09 AM
by CDLAWNCARE
7 240
Best Bulk Mulch delivery...
Steven Virgadamo
04-18-2014 09:52 AM
04-18-2014 05:34 PM
by Steve
2 107
Steve Virgadamo,...
Steven Virgadamo
04-18-2014 09:49 AM
04-18-2014 05:08 PM
by Steve
2 94
Instagram
Gerardo_Landscape
04-16-2014 11:28 AM
04-18-2014 04:51 PM
by Steve
3 201
Help with weed liability!
Prolawnofchatt
04-15-2014 09:10 AM
04-18-2014 04:47 PM
by Steve
5 262
Nationwide lawn care...
Billy Goat
04-15-2014 05:21 PM
04-18-2014 04:39 PM
by Steve
9 274
Truck Signage
Dan Tanner
04-16-2014 11:00 PM
04-18-2014 04:04 PM
by stevef1201
10 301
leaf removal
tlf59263
04-15-2014 10:00 PM
04-18-2014 03:59 PM
by stevef1201
6 250
Pay per click advertising
roostertail
02-12-2014 07:26 PM
04-17-2014 07:11 PM
by yardrate
10 648
Accepting credit cards,...
Darksteel
03-17-2014 08:01 PM
04-16-2014 01:02 PM
by jymie
15 818
Trimec
acrajchel
04-15-2014 08:24 PM
04-16-2014 11:10 AM
by Steve
3 154
Gopher Forum Discount!
BlackRain75
04-12-2014 10:44 PM
04-16-2014 10:50 AM
by Steve
9 355
hello
NFrailey
04-15-2014 01:39 PM
04-16-2014 10:48 AM
by Steve
1 145
Pricing a Mulch Job
dmcalpi
04-07-2014 02:16 PM
04-16-2014 09:40 AM
by jymie
21 801
google earth
CDLAWNCARE
04-12-2014 03:24 PM
04-16-2014 09:36 AM
by jymie
8 302
There has to be an...
CDLAWNCARE
04-14-2014 12:59 PM
04-15-2014 04:06 PM
by Dan Tanner
6 241
First Day Back!
BelleCityLawn1
04-09-2014 09:13 PM
04-15-2014 11:16 AM
by Steve
11 374
Mow America
stevegredler
04-13-2014 01:02 PM
04-14-2014 09:53 PM
by kslawn
5 283
Power Broom
acrajchel
04-14-2014 07:46 AM
04-14-2014 12:47 PM
by CDLAWNCARE
2 156
Say Hello !!!
Steve
03-19-2007 11:18 AM
04-14-2014 11:34 AM
by Steve
1,176 287,189
Equipment reviews
Greg'slawnandlandscape
04-09-2014 07:17 AM
04-14-2014 11:27 AM
by Greg'slawnandlandscape
13 539
Aerating Prices?
Dan Tanner
04-08-2014 03:16 PM
04-14-2014 10:31 AM
by Steve
13 549
Estimating help
acrajchel
04-11-2014 06:06 PM
04-14-2014 10:20 AM
by Steve
3 249
» Popular Tags
34'' advertisement bid birdscaping buy charge christmas client collections subcontractor credit card processing customers ecosymbiosis escrow exmark ferris first truck flower bed for sale georgia gopherhaul grass clarksville gravely holiday holiday decorating honda how much to charge how to bid installation invoice kawasaki late lawn care lawn care business podcast lawn care business show lawn service leaf cleanup leaf removal lesco lighting brass outdoor lights marketing mowing mulch mulch estimate native plants new buisness new business online classifieds organize payday podcast redmax rotating savannah scag season seo social media sprayer starting a business start up lawn care business stihl taxes theft of services tips truck unreasonable walker winter winter services zero turn
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 12:02 AM.


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

All times are GMT -5. The time now is 12:02 AM.

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