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Selling my route

Discussion in 'Commercial Snow Removal' started by DannyH, Sep 15, 2001.

  1. DannyH

    DannyH Junior Member
    Messages: 1

    I need to sell my plowing route due to an unexpected move 1 hr. away from my route in northeast ohio. I have 65 residential customers that are 1. Grouped in a small travel area, 2. Have been with me for 3+ (some 20) years, & 3. Average $190.00/season per account.

    Is there an industry standard or some type of going percentage? I have an interested party who is proposing a yet to be determined percentage of accounts that he signs with payment to be made to me only after receipt. Please help with any past experiences. Thanks.
     
  2. Mick

    Mick PlowSite.com Veteran
    from Maine
    Messages: 5,546

  3. Kent Lawns

    Kent Lawns PlowSite.com Veteran
    Messages: 315

    Route like that can be very profitable.

    My experience from buying several route (and selling a few, too) was that 25-100% of the SIGNED amount was paid.

    It sounds tight (no traveling)
    It sounds loyal (minimum customer loss)
    It sounds like you're charging decent money (good profitability)

    I've bought GOOD routes that we paid 100% of the annual gross and I'd do it again tomorrow.
    I've bought POOR routes that we paid 5% of the annual gross and it was a waste of money.


    If it's as good a route as portrayed ~ don't give it away.
     
  4. CT18fireman

    CT18fireman Banned
    Messages: 2,133

    I have bought many routes over the years as I grew. I also sold one (in an effort to condence into operating in two towns only) I found that selling the route was difficult because I wanted to be sure that the purchaser could handle the route and keep my past customers happy. I had built the route and was proud of it. Finding the buyer was more than just making sure he could afford it. Think about this before you sell. Sometime in the future these customers may be involved in business with you in someway again. You want to keep good customers happy.