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trading selling accounts help

Discussion in 'Bidding & Estimating' started by TinyGiant, May 16, 2012.

  1. TinyGiant

    TinyGiant Junior Member
    from NH
    Messages: 16

    I have about 30 residential plowing accounts that I wont be able to service this year as the wife and I decided to grab a large commercial account that requires complete storm dedication.

    We are located in rochester, nh ..

    how do people normally go about selling accounts or trading things for the account list? is there a place on this forum for that? or another site?

  2. Rc2505

    Rc2505 PlowSite.com Addict
    Messages: 1,245

    Accounts themselves are pretty much worthless. I have always been a firm believer that a business is only worth the equipment purchased. Even if you have the accounts under contract, as soon as you try an transfer them to a different company, that creates an out for the customer. If you have serviced them for the past 10 years, they are used to your service. The new provider may not do exactly what you have done in the past, which means the customer has another out. So what I am try to get across is, your accounts aren't worth anything to someone else. They can only be worth someting to you. Have you thought about adding equipment, and keeping all of it?
  3. TinyGiant

    TinyGiant Junior Member
    from NH
    Messages: 16

    Well i still need my truck for the mowing side of the biz. And my plow. So there really wouldnt be any equipment to add. I do see your point though. Im considering possibly finding someone to do my route as an employee but idk. Lol i envision an employee beating the hell out of my truck and not being as detailed as i tend to be
  4. swtiih

    swtiih PlowSite.com Addict
    Messages: 1,179

    Why not look for 1 or 2 guys as subs who have trucks to service these.
  5. Rc2505

    Rc2505 PlowSite.com Addict
    Messages: 1,245

    That is one of the big problems with growing your company. As stated, finding subs and paying them 75% of what you would normaly bill might be an option, however subs usually have thier own properties to plow and they will do them first. Finding an employee that you can trust is not out of the question. I have 4 guys driving equipment that I own, and as long as you find the right guys, and treat them right, they will treat you right as well. Two of my guys are self employeed for thier regular job, and work for me only when it snows, The other 2 are full time employees, that have worked for me for years. You have to throw out the bad apples, and have replacements on hand till you find exactly what you need. I am sure if you start looking now, things will pan out for you before the snow flies. Good Luck
  6. Neige

    Neige Sponsor
    Messages: 2,195

    I have to disagree with you, now 30 clients are not much to sell but they do have value. Over the last 4 years I have bought over 1400 resi clients, and several commercial accounts. I am presently in negotiations for another 315 resi clients. In my market depending on the route density you can get between 30 and 100 % of the value of the contract. The seller will have to sign a no compete clause for at least 5 years. Now the OP will not get nearly those amounts, but those clients have some value for a direct competitor. I would suggest he try and work it out and keep them, because he is now putting all his eggs in one basket. Lose the big account and you have nothing. Also if he does landscaping or lawn maintenance those resi can be year round income.
    He can do that or like suggested, hire help and keep it in house. Good luck with what ever decision you make.
  7. RLM

    RLM PlowSite.com Addict
    Messages: 1,270

    I agree with what Paul said. There is some value there. If it were me I would look at how long it takes, the revenue, & what sub contractors get in your area. Around here with a tight route, subbing it out you could easily make 40% after everything, figure 50-60% before you add in sales time, service calls, topsoils repairs & staking.