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Selling Accounts, What are they worth?

Discussion in 'Commercial Snow Removal' started by edrenckh, Nov 29, 2014.

  1. edrenckh

    edrenckh Member
    Messages: 61

    I am debating on selling, or giving away, my remaining snow and lawn accounts. As I get close to retirement, I want less to do with them.

    They generate ~$1,000 per month, gross. It is not my main source of income, so it is a small piece of the pie I want to get rid of. The snow plowing is ~$5K, with some room to increase. The lawns are ~$7K. That includes ~$1.2K in fertilizer. So, ~$12K total annually.

    I will likely keep my equipment, as I still need it for my personal use.

    3 commercial lots on hourly
    6 driveways on contract
    6 lawns mowed weekly

    Some of the accounts I also do snow, some accounts I do snow only. It is not 100%. I currently sub out my lawn care accounts and fertilizer. After the first of the year, perhaps ~3/1/15, I am going to notify the customers.

    I do not think they are worth going to a business broker and selling.

    Are these accounts worth anything? I assume something, but I am not sure.
     
  2. Whiffyspark

    Whiffyspark 2000 Club Member
    from SOMD
    Messages: 2,402

    I'd give them to a friend or a young person with a good business
     
  3. Banksy

    Banksy PlowSite Veteran
    Messages: 3,113

    Ok, I just paid you for the accounts and now the customer is going with his brother in-law's company instead. Now what? Are you going to give my money back?

    I second handing them over to a strong growing young business. Maybe deal for a percentage of the profits for the first year, if that.
     
  4. edrenckh

    edrenckh Member
    Messages: 61

    Thanks for the replies.

    I will probably hand them over to my sub, no charge, and let him do the billing, etc. he did not want the snow accounts this year, on a subcontract basis. Maybe on a full billing he may be. I was giving 85% of the total.

    I will probably start notifying the customers soon, and a final notification in the spring.

    I need to get out of MN for the winters!!! I have been doing this since 2002.
     
  5. Flawless440

    Flawless440 PlowSite.com Addict
    Messages: 1,543

    I would give them away.. Theres not enough there to charge anybody..

    I wouldn't tell your customers in till a couple months of the new guy doing the work.
     
  6. Snow tracker

    Snow tracker Senior Member
    Messages: 127

    I agree. Unless you have multi year contracts signed and a guarantee that the customers will stay with a new owner it's really not much to buy. Also you can not guarantee the new owner it will snow. I also like the idea of having your replacement do the work for a while then let your clients know he will be taking over. Just my two cents