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Buying snow Accounts

Discussion in 'Bidding & Estimating' started by greenleafland, Oct 7, 2014.

  1. greenleafland

    greenleafland Junior Member
    from Pa
    Messages: 5

    Looking to expand the snow biz this year. there is a a competing company closing shop due to a new career choice. He is looking to sell his 3 commercial accounts and 13 residential properties. they are all very close together and I already have current properties there. They aren't large properties but he grosses 15,000 in sales last year. He is either looking for 4,000 for everything or 50% cut per event until paid up to 5,000. I didnt discuss money to him yet just want to get everyones thoughts on ways to go about this and his asking price is ok. Granted I dont need them but extra is always a plus.
     
  2. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Driveways are worth nothing, Cup of coffee and say thank you.
     
  3. greenleafland

    greenleafland Junior Member
    from Pa
    Messages: 5

    So give a cut for the commercial properties and just acquire the residentials.
     
  4. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    At most a grand at the end of the season,Tell him that's what you spend on getting new accounts.
     
  5. greenleafland

    greenleafland Junior Member
    from Pa
    Messages: 5

    a grand for everything..
     
  6. Banksy

    Banksy PlowSite Veteran
    Messages: 3,113

    The one question that always comes to mind first for these is, how do you know the customer will keep you?
     
  7. BC Handyman

    BC Handyman PlowSite.com Addict
    Messages: 1,847

    Exactly what my worry would be, I'd rather get accounts on my own then pay for one that might be a waste of money.
     
  8. Meezer

    Meezer Senior Member
    from Indiana
    Messages: 291

    Maybe some dissatisfied/PITA customers hastened him deciding to seek another "career path" You'll never know the full story.
     
  9. Buswell Forest

    Buswell Forest PlowSite.com Addict
    from NH
    Messages: 1,668

    Put an ad in the local paper, 2 week run. Big bold letters, list the towns you will service, really simple ad.
    Now you have spent $350 and chances are you will get several of those accounts.
     
  10. mnlefty

    mnlefty Senior Member
    Messages: 970

    I won't be quite as down on it as others, but I'd need signed contracts and the customer informed that you'll be taking over. I'd also need to see pricing per account to know if I can make money on them or if he's doing it for beer money. If there's signed contracts, AND I can make money on them, then I'd maybe go up to about 20% of the gross.
     
  11. greenleafland

    greenleafland Junior Member
    from Pa
    Messages: 5

    no money upfront he would be paid 50% of sales on first storm then 25 thereafter. 3 commercial accs and 13 residentials. I told him 1800 for everything he countered at 3. he grossed 15,000 last year.
     
  12. Meezer

    Meezer Senior Member
    from Indiana
    Messages: 291

    OMG, you're kidding, right?:rolleyes:
     
  13. greenleafland

    greenleafland Junior Member
    from Pa
    Messages: 5

    I kid you not. that's why im here. This will be my second yr doing snow, new experience for me even though last yr was very successful for the east coast
     
  14. agurdo17

    agurdo17 Senior Member
    Messages: 124

    ive paid 5 percent for a good word on accounts as long as i get them. Commercial. I wouldnt pay anything for resis.
     
  15. Fannin76

    Fannin76 Senior Member
    Messages: 731

    If you know the properties just go bid them. Or if you don't know the properties bid the properties in the area you said your around there anyway.