Was approached by someone today trying to sell me 25 residential accounts in New Canaan CT. He had just purchased 50 drives in addition to his own 12 accounts, now he wants to sell 25 before the first real storm.Says its too much for his S10 pickup, says previous owner ran two 3/4 ton pickups w/8 foot plows for 8 hours each. Says they bill out at $1,200 per storm and that he wants $1,200 for the 25 drives. I told him I want to look at them, talk to the customers first. If I go ahead with this, I will structure as John Allin suggested. Payment 30 days after first plowable storm, and only for those who choose to remain with me, or those I choose to keep. any suggestions and/or recommendations?
RB, John Allin's company does purchase routes. his guidelines are as follows heavy snow areas , average purchase price is equal to 2 plowingsIless snow rich areas, 1 plowing. the payment is made 30 days after the first plowable storm, and then only for the accounts that you choose to retain or that choose to remain with you. Buying routes is a crap shoot. I know that, especially in this area, where it seems everyone who owns a 4wd truck, has a plow. If you buy a route, or are considering it, as I am. You need to do your homework, don't just jump into it. look at the accounts, talk to the seller, ask why is he selling it. talk to the customers, thats what I plan on doing. IT may snow tonight and Friday maybe I will FINALLY be able to plow. may have to put off looking at these possible new accounts until Saturday.
Be careful about what you think you are buying. It sounds to me like he is blowing a little smoke up your posterior portall. Me thinks he wants to flog the dogs. I can not believe that one would need 16 truck hours to complete 62 drives. Must be very far apart or undersirable in some way. Look carefully at their location and the traffic patterns in the area - are they miles apart in heavy traffic? The billing total and time seems (hourly revenue) seems to suggest that. Also, if he flogs the dogs, it will be HIS average revenue that will increase, not yours: it will be guaranteed to decrease as you are always waiting in traffic or on the road.
