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Any one Buy Accounts?

Discussion in 'Business Fundamentals' started by Clapper&Company, Oct 11, 2009.

  1. Clapper&Company

    Clapper&Company PlowSite Veteran
    from NE OHIO
    Messages: 4,413

    Has any one ever Bought snow accounts?

    Just wanted to see what every ones input is and how they have done it.
     
  2. 2COR517

    2COR517 PlowSite Fanatic
    Messages: 7,115

    I tried to once. Offered the guy 25% of the full take from the first year. He didn't bite. Gave me the whole route the following year.
     
  3. Camden

    Camden PlowSite Fanatic
    Messages: 6,598

    I attempted to last year. I couldn't come to an agreement with the person because he wanted to sell all of his equipment along with the business. Granted he had A LOT of stuff but none of it was for commercial use. He primarily used 1/2 ton trucks with 7.5' blades. It just wasn't the right deal for me.
     
  4. flykelley

    flykelley 2000 Club Member
    Messages: 2,124

    Hi Ron
    I have never bought snow accounts but I did buy some lawn accounts two years ago. That's how I got started in the green end, but if you do make sure you have the seller sign a non competing clause in the contract for 2 years. Do not take his word that he will not come back and try to steal your customers back. Remember he most likely still has copies of his past contracts and knows how much each one is, he can show back up next year and under bid you. Some of the customers will not talk to him but some are always willing to listen for less money.

    Regards Mike
     
  5. Clapper&Company

    Clapper&Company PlowSite Veteran
    from NE OHIO
    Messages: 4,413

    Right, I know about that, how did u base ur price on for the accoutns were worth
     
  6. flykelley

    flykelley 2000 Club Member
    Messages: 2,124

    Hi Ron
    To a certain degree, its was also based on how much you wanted these accounts. The ones I bought were close to my route and they were for the most part high end residentals in a area that is very hard to get your foot in the door. They paid for themselves in two months time. So part of it is it near your route and also how soon will you recover your money? The other thing you have to be carefull of will all of the customers stay on with the new company, hard to have a answer for that but for me they did all stay.

    Regards Mike
     
  7. Advantage

    Advantage Senior Member
    Messages: 766

    I think a good way to go about it is an initial down payment, then an agreed upon percentage of sales for the following season. This way you don't get screwed if it doesn't snow.
     
  8. 2COR517

    2COR517 PlowSite Fanatic
    Messages: 7,115

    Or if they switch to someone else.
     
  9. Advantage

    Advantage Senior Member
    Messages: 766

    Exactly. Got to cover your a$$