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do you sell a route?

Discussion in 'Business Fundamentals' started by jax1013, Nov 30, 2005.

  1. jax1013

    jax1013 Senior Member
    Messages: 114

    Hi guys,
    Can you guys tell me if its appropriate to :
    1. sell your accounts to someone else..like the landscapers do
    or just make arrangements for your customers to decide.

    2. or just walk away and thank them.
    Thanks, Jack
  2. flykelley

    flykelley 2000 Club Member
    Messages: 2,127

    If they under conract then sell them if you want. all my contracts state that I have teh right to sell or assign the contract if I see fit.

    Regards Mike
  3. mrplowdude

    mrplowdude Senior Member
    Messages: 315

    I send my customers a letter of recomendation for a new plow guy and who ever gets reccommended should thank you payup .
  4. Ken1zk

    Ken1zk Senior Member
    Messages: 192

    This summer the old lady and I called it quits. She kept our home in Hamburg NY and I moved to Downtown Buffalo NY in order to be closer to my summer business.

    While on a dry sunny day Hamburg is only 12 minutes from my new home, in the winter is might as well be in the southern hemisphere. Since the lake effect snows can often close the main artery (the skyway) connecting Downtown Buffalo to Hamburg I decided it was in the best interest of quality service to my customers to sell my contracts in Hamburg and start over again here in the city.

    In my contract I have the right to reassign the agreement, and I sold the route to a fellow who I knew who operated his own plowing business much as I did mine. We together drafted a letter explaining the sale and that the customer should expect the same quality service from the new fellow that they had received from me.

    You spend a lot of time building a business. You take time to estimate, market, build relationships with people, building your business based on the quality of service you provide, and that is worth something. I certainly would not simply hand over anything of value to anybody that I have spent so much time and effort to build.
  5. plowman350

    plowman350 Senior Member
    Messages: 125

    contract language

    My contract states that

    From here forward the name "xxx" shall refer to the named company, its employees, owners, subcontractors, and affiliates.

    Remember that the contract you signed is between your company and the customer. By no longer being the contractor.....you no longer have a valid contract. However, if you want to get rid of a route after this year's contracts are signed....simply sub them out to someone else. Even if you pay your sub full price. That way, they are now a sub for you, and no longer do you hold a breeched contract. Next year, send a letter to your customer telling them that xx company will be taking over your plowing jobs in their neighborhood....and that the previous year they were the ones who cleared their driveways. That way the customer knows that the job they had performed last year by your business will be identical to what they get next year.

    As far as the "sale" of this route. You can pay your sub less than full price and keep the difference as payment.....or you can accept payment from him for next year, spread it over 2 years....whatever you want.
  6. go plow

    go plow Senior Member
    Messages: 322

    my 2 cents. i feel that the people who buy the accounts are on the losing end, a freind of mine bought a guy out, i believe it was about 35 clients... he payed 10k not sure . but all was set to go, then he started to recieve calls, like , the last guy shoveled a path from by back yard to the house next door so i could go visit with them, crap like that ,most people are used to a service and dont like the fact that they dont have the power to choose the service provider, my friend ended up with 8 out of 35 client!!! not bad for 10k huh??? out of those clients that he payed for i ended up with about half of them.. without having to pay for them!!!!! for all of you who think of buying into this crap, think of it this way, if a guy has 50 acounts in you area, and there are 10 plow guys lets just say. dont you think that some of those 50 clients will be calling you when the other guy says im selling out??????? just my 2cents.....
  7. Ken1zk

    Ken1zk Senior Member
    Messages: 192

    In the transition period we gave each customer the opportunity to opt out. (all of my agreements run for 3 seasons). The gentleman who purchased the route retained 100% of the customers. :nod: Would he have retained less, the price was to be adjusted accordingly per our agreement of sale. This was to protect both of our interests. The sale of any business must extend way beyond "Heres your check", "Heres your customer list" or somebody will most likely get the short end of the stick.
  8. go plow

    go plow Senior Member
    Messages: 322

    Thats A Good Way Of Doing It!!!!
  9. chesterlawn

    chesterlawn Member
    Messages: 87

    Becarefull if tou sell it to somebody that has no insurance. If there is an accident it could come back to haunt you.
  10. Ken1zk

    Ken1zk Senior Member
    Messages: 192

    This is exactly the kind of thing you have to research before you sell your business when contracts for services are involved, like I stated above it more than ...
  11. SnowGuy73

    SnowGuy73 PlowSite Fanatic
    Messages: 24,870

    Sell them...:nod: