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Buying residential cliets

Discussion in 'Business Fundamentals' started by M&M, Oct 16, 2011.

  1. M&M

    M&M Senior Member
    Messages: 312

    I have two different opportunities. They are very different but have some similiarities.

    A) I received a list of 8 potential residential clients from a guy who is no longer plowing. I am in process of signing these clients.

    What do you think is a good number I should give to old plower? $0? One plow ($40 each)? 2 plows ($80 each)? More?

    B) My friend is thinking of getting out of the business. He only has 10-12 residential clients. Again, what do you think is a fair price?

    Thanks for the help.
  2. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Zippy for both.
  3. ken643

    ken643 Senior Member
    Messages: 816

    I wouldnt give anything, no guarentee they will use you.
  4. Indy

    Indy Senior Member
    Messages: 704

    a steak and some beers........max
  5. swtiih

    swtiih PlowSite.com Addict
    Messages: 1,179

    maybe 100 to each guy max. but no more
  6. quigleysiding

    quigleysiding PlowSite.com Addict
    Messages: 1,091

    There is a guy around here who has 30 accounts. He wants $4000.00 for them.
  7. neplow

    neplow Junior Member
    Messages: 28

    up to you. i have given away drives expecting nothing. A token of appreciation and thanks, show of respect would probably be well received.
  8. swtiih

    swtiih PlowSite.com Addict
    Messages: 1,179

    how much do these accounts make
  9. buckwheat_la

    buckwheat_la 2000 Club Member
    Messages: 2,254

    A couple hundred each, but only if you sign most or all the clients. You are not paying for the clients, you are paying for the recommendation the old contractors are giving you.
  10. quigleysiding

    quigleysiding PlowSite.com Addict
    Messages: 1,091

    Talked to the wife. She said that they are mostly driveways and a couple of small lots. She said that it pays $1500.00 per push
  11. swtiih

    swtiih PlowSite.com Addict
    Messages: 1,179

    4000 is just way to much

    THEGOLDPRO PlowSite Veteran
    Messages: 3,136

    Hell i turn down 40-50 new driveways a year lol No way would i ever pay for driveways. I have also decided to down size my driveways this year to focus on more commercials and have been giving driveways away like wild fire to who ever wants them.
  13. quigleysiding

    quigleysiding PlowSite.com Addict
    Messages: 1,091

    Yeah You would be plowing the first year for just about free with the amount of snow we usually get.
  14. mnlefty

    mnlefty Senior Member
    Messages: 963

    Do you give a referral discount to your current customers? I would give the previous plower $$ equal to whatever you give a customer for a referral, only for those accounts that sign up, as that is all you're getting is a referral. Now if he is handing you signed contracts it's closer to a sub arrangement worth a small % of this year's revenue, then when you sign them up next year they're yours 100%.
  15. Glenn Lawn Care

    Glenn Lawn Care Senior Member
    Messages: 552

    I would not pay for driveways! They are easy to pick up, if someone see you out plowing their neighbors driveway and they are shoveling, they will more than likely flag you down to do theirs for the rest of the season!
  16. M&M

    M&M Senior Member
    Messages: 312

    Thank you to all for your input. About 50% of the clients have signed with me so far so I still don't know what I'm going to give each guy. Probably only one push worth is what I'm guessing. These clients are right in my wheel house as I drive by them on my current route so it's all gravy.
  17. grasskeepers

    grasskeepers Member
    Messages: 71

    there only worth 1/5 of what you would make off them in the first winter

    but i wouldn't pay more then 800 for them,
  18. Wilnip

    Wilnip Senior Member
    Messages: 583

    Our main business is pet sitting. Someone got out of the business and reffered all her clients to us. She expexted nothing. At christmas we got her a gift card for like $100. They are not selling a business so you really don't have to pay anything. Gift cards, case of beer, etc
  19. moremph

    moremph Junior Member
    from NKY
    Messages: 16

    I recently purchased a plowing buisness, I paid for the equipment and basically got hand walked into 6 contracts introduced and handed them, But thier was no gurantee on any of it. and we didnt get one. I paid nothing for the contracts and only for the equipment. However you can bet both guys will be getting a christmas card if i get paid