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Buying account


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Old 04-24-2009, 09:15 PM
elitelawns elitelawns is offline
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What are your take on buying account. What kind of question do i need to ask.
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Old 04-24-2009, 09:31 PM
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1st of all, I do not support the idea. But if you are going to....
How long have they been clients?
How long is left on the contract?
How much per month/year?
Then go look at the property & figure out how long it will take to service.
Is it worth the price they pay or was it underbid in the 1st place & that's why they are dumping the account?
Which brings up..... why are they selling the account?
As a general rule a typical account might be worth 1 months gross revenues, could be more if it's a multi-year contract.
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Old 04-25-2009, 10:22 PM
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So here what i found out is he want's 10,000. No contract his highest paid yard is $50. He will be selling 125 account gross is 12.500 net 7,500 a month. He will stay on for a week. he had them for two years. He will sign a no contract for 4 years for lawn maintenance. I wish i could think of something like if they don't stay with us for a month he will refund us one hundred dollar. has anyone ever ask that of the seller.
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Old 04-25-2009, 10:58 PM
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I'd also want to know why he is selling the accounts.

Quote:
He will sign a no contract for 4 years for lawn maintenance.
Is this a non-compete agreement?

Quote:
He will be selling 125 account gross is 12.500 net 7,500 a month.
That's about $100 per lawn gross.

$25 per week gross. And that is the average. I am guessing some could even be less than that.

However the net really is up in the air because it's going to come down to what are YOUR expenses for cutting those lawns.

Did you check out these lawns? How much would you bid on them?

What I would hate to see happen to you is that you buy these accounts site unseen and you find out he lowballed them. He is not making any money on cutting them and then he figures he wants out so he will sell them.

Quote:
I wish i could think of something like if they don't stay with us for a month he will refund us one hundred dollar. has anyone ever ask that of the seller.
It's a great idea but it might be next to impossible to get that money from him if the money is not put in an escrow account.

The big thing is not whether they stay, it's are they profitable to you. If they aren't, the entire deal is worthless to you.

What's your take on all this?
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