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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.
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  #11  
Old 12-27-2008, 09:48 PM
backinblack
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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.
Please dont misunderstand me in regards to the quality of the work. I should have better explained myself. The work is pretty great, not perfect. I don't think anyone could ever do the type of work that I expect. But what I am worried about in the quality is the personal attention, quick response time, and friendly service. He is just not "there" to that point yet.
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  #12  
Old 12-28-2008, 03:49 PM
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Lawn care business tipsLawn Care Business Book
Keep us posted on what you decide to do.
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Old 12-30-2008, 04:01 PM
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I will let you know what I decide. Put of me really wants to hang onto the customers and find a good solid sub. Its just hard to let go of customers that I have taken so much time and energy to build up. While the other part of me feels that its time to move on because the market is becoming completely saturated with fly by nights and new start ups, and with the economy absolutely tanking. A very hard decision to make
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Old 12-30-2008, 04:14 PM
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Why not just sell it all outright if you want. Then take the money and look for new investment opportunities or hire someone full time to do the jobs maybe?
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Old 12-30-2008, 08:43 PM
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Why not just sell it all outright if you want. Then take the money and look for new investment opportunities or hire someone full time to do the jobs maybe?
That is one of the things that I am considering. Whether to sell everything off, part of it, or just sub it out.

There are lots of pros and cons to everything, but trying to make the right decision. I think that what will help me make the right decision is whether I can get a good price for the customers if I was to sell them. If someone offers me a good price or accepts my offer, then I will probably bow out from the business totally.
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Old 12-31-2008, 08:26 AM
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If someone offers me a good price or accepts my offer, then I will probably bow out from the business totally.
Have you figured out what # times earnings would make you sell? 1x monthly, 2x monthly, 3x monthly? Or what?
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Old 01-01-2009, 01:05 AM
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Have you figured out what # times earnings would make you sell? 1x monthly, 2x monthly, 3x monthly? Or what?
I am going to sell the accounts at 50% of the yearly gross
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Old 01-02-2009, 10:13 AM
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How are you going to market the sale? I bet a lot of readers looking to sell their business would love to hear your insight as to this.
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Old 01-03-2009, 12:06 AM
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How are you going to market the sale? I bet a lot of readers looking to sell their business would love to hear your insight as to this.
Well, the company that I plan on selling it to offered to buy my accounts about 4 years ago, so I am going to approach him first before anybody else. I will keep you guys updated on it when it happens. Probably won't be for another few weeks.
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Old 01-03-2009, 10:53 AM
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Well I do look forwards to hearing about it. Keep us updated.

I wonder if sending out letters to every lawn care business in the area about a lawn care business being for sale would be helpful. Maybe if it were just generic letter and then if they had more questions on it, to call a certain number or to email a certain address. Then maybe you could have an auction and get the best price available.

What about even on ebay? Could something like that work maybe? Could we even make a post for it on here and find those who are interested from your area to post how much they would bid for it all. You could include the link the post here in your letter. We could have pictures of the equipment and list the number of accounts and the income the accounts generate. An ad could be made on craigslist linking to a post here.

Hmmm, now that I am thinking, I do wonder if making a podcast or a GopherHaul video might help it sell better!

I'd love to see you get top dollar and that might not happen unless you have some kind of bidding for the business.

What do you think of these ideas?
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