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How much shoud i pay for 25 to 30 driveways

Discussion in 'Commercial Snow Removal' started by snow problem, Apr 12, 2007.

  1. snow problem

    snow problem Senior Member
    Messages: 118

    I am looking to pick up approximately 30 large res driveways form a friend that i plow with. The rate around her is $65 to $85 per driveway and the 30 driveways take approximately 4 hours to complete. I have been doing this section of his route for 7 years and i know all the clients. My question is how much do i pay him for the driveways to take them over.
  2. Yaz

    Yaz PlowSite.com Addict
    from NH
    Messages: 1,061

    You say he is a friend.. If he was truly a friend he should just give them to you, one reason is because you have made him money on them for the last 7 years. At that price he charges he must be a smooth talker and a savvy business man. Guys that sell their wrought with truck like in the canteen business get allot, like 1 years salary plus the truck from what I have been told.

    If since it truly a business I guess the price can be similar. I can wait to hear how this has been done for other members.:rolleyes:
  3. snow problem

    snow problem Senior Member
    Messages: 118

    he's not ging to just give them to me, although he has about 80 driveways, but we both have other jobs other than plowing. The problem is that i make the $400 he pays me on approximately 15 of the driveways of my own in half the time. We get between $65 -$85 per driveway. I do have sevral old clients that i do for $50 but mosty in the $65 -$85 range.
  4. Jay brown

    Jay brown PlowSite.com Addict
    Messages: 1,783

    in the past i have bought accounts for the price of one event. btw dude seriously your doing something right by charging that much $$$$$....your making over $500 per hour on something as simple as a driveway and it takes me all 5-6 plows to GROSS that much per hour. you just made me feel like a lowballing SOB and makes me realize that life is too short to work some darn hard for my money.
    Last edited: Apr 12, 2007
  5. Gicon

    Gicon Senior Member
    from MA
    Messages: 989

    30%-45% if you are feeling generous of one times route sales. You are getting real strong money at a low price of $60 and high of $80. Dont forget though, those customers can be gone at the drop of a dime. I understand you have had them for a long time, but if the new kid comes into town at $30, you might have a couple lost. Not that big of deal, but you dont want to pay the moon for the accounts that might leave you
  6. YardMedic

    YardMedic PlowSite.com Addict
    Messages: 1,266

    You're missing a very important piece of information in your description of this: What is your friend saying about it? Is he with you or against you in wanting to do this? That would say a lot for how the sale would go. Unless I miss my guess here, he acquired the customers, he maintains the relationships, he bills, and he's responsible for having you plow them. You make twice what he pays you on your own driveways because you're doing 100% of the job on YOUR ACCOUNTS. He's doing half the work on the accounts you do for him, and he's compensating you nicely as he should. How is he going to handle you taking his share of the pie? I personally think the guy is foolish to give up so many accounts that he has acquired, but that's just me. I think if anything he ought to be buying YOU out. I'm not slamming anyone here, just looking at it as though it was my situation.

  7. snow problem

    snow problem Senior Member
    Messages: 118

    He's been tring to get out of these driveways fo some time now. He does approximately 80 driveways, and these are one the far side of his route. I just figured i would try to get them before he gives them to someone else or just loses them.
  8. YardMedic

    YardMedic PlowSite.com Addict
    Messages: 1,266

    Well the quickest way for him to make a bad name for himself is to give a route to someone without experience doing it, so it makes the most sense for you to be the one taking it over. I would think you should be his first choice.

    Part of this still seems a little backward for me. Guys typically make more by taking on more clients & subbing out work or buying more trucks & hiring people to drive. Build a bigger empire, ya know? With having these new clients all your own, do you have the resources & connections to cover the route should your truck break down? What about him? Had you been his backup guy for picking up slack in times of trouble? I'm just trying to look at your situation here from all angles.

    You also say he's looking to get rid of them. Why isn't he pitching YOU the concept of buying the route & giving you a number to think about? You don't know what it's worth to him, either a low cost just to get the weight off his shoulders, or a high value because he did all the work of building your empire. The average income for a plowing of those 30 accounts would be like $2200, right? Cutting your buddy a check for $2k seems like a pretty nice payday for him if he'll turn over the customers to you. Sacrifice $2k from the first snow next year, and the second storm makes you back what you would have made plowing for the other guy. Make an offer of $1500 if you want... see what he thinks. I still say ask him first & see what he wants.