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sell route here?

Discussion in 'Commercial Snow Removal' started by neilc, Jan 9, 2003.

  1. neilc

    neilc Junior Member
    Messages: 15

    I see we sell eqip and stuff on other board... is it OK to sell route???
  2. gslam88

    gslam88 Senior Member
    Messages: 168

    Are you selling your route??
  3. neilc

    neilc Junior Member
    Messages: 15

    think so ,
    26 billable cust. all residentail, 1@25(elderly), 30-55 ,1@150(Private ln & 4drives) some sand, some shovel walks,
    fairfiled/westport, around 5&1/2 hrs last two 4" snows,
    have not notified custumers yet. not sure of procedure there, no idea on pricing??
    could also include: 02 silverado, 6.0 ltr, 4l80 auto, cab & 1/2, 6&1/2' bed, locking diff, 14,000mls. 8' western ultra mount and snow shovel

    I'll keep the wife

    after 25yrs the thrill is gone
    job promotion w/ all new responsibilies will definatly conflict w/ prompt cust service

    let the bidding begin


    I do plan to finish the season

    guys? :drinkup:

    PINEISLAND1 PlowSite.com Veteran
    Messages: 664

    I'd say about one seasons gross for a starting point. I may take it if you paid me that much, but then I'm in a good mood tonite. Tommorow it may cost you twice as much. :)
  5. ceaman

    ceaman Senior Member
    Messages: 372


    I think the initial drive would keep you from giving prompt customer service as well!!!!
  6. OffRoadPlow

    OffRoadPlow Senior Member
    Messages: 247

    I think I saw a book on EBAY about tips for selling routes online, you might want to look into it.:D Good luck, oh and does it come with a house too? I might consider it with the winter we are having....
  7. Acorn

    Acorn Senior Member
    Messages: 103

    hard to sell a list. I've seen people sell equipment with a list as an incentive to buy the equipment at a slightly higher price that market.

    A buyer will want a retension guarantee. for that you could get a commission of percentage of the contracts he keeps. After that was you hands of it. You will still get customers calling you so the buyer of the list will probably want you to refer these calls to him.

    People here generally don't want to pay for a list because someone is going to plow them anyway and chances are they will get some of it anyway without having to buy a truck.

    I guy was selling his route around here and not all customers went with the buyer and I was already in this area so I was able to pick up 6 jobs for free

    just some thoughts
  8. rick barnes

    rick barnes Member
    Messages: 61

    selling route

    had a fellow approach me to buy him out, truck & accounts.
    Talked to 2 of his before winter, they told my that they didn't want him back. I had them call him and tell him that, after they called him I contracted with them. After the 1st snow, had another of his accts call me wanting me to plow for them, they fired him.
    SOOO, if you plan on paying a premium for a list with equiptment be sure that you are not buying a dead horse

    My $.02

  9. Ground Master

    Ground Master Junior Member
    Messages: 22

    I'd only be willing to pay a percentage for a year........say 20 percent down and 10 percent each month till it reached 50 percent.......and thats the max if the route is deemed worthy.......just my opinion
  10. Acorn

    Acorn Senior Member
    Messages: 103

    I would only give a guy 10% max. Plow jobs are easy to come by anyway
  11. KLMlawn

    KLMlawn Member
    Messages: 67

    I think that considering the type of business and the fact that Plowing is often closely associated with Landscaping and maintenance, the same rules for selling snow accounts could apply. From personal experience, as well as reading many posts on "selling accounts", I think the norm is about 10% of the seasonal gross. That usually is paid in a percentage down, say 50% (5% of the gross) upon transfer, and the balance in monthly, or incremental installments, based on customer retension.
    Provided that the buyer has the ability and necessary equipment to service the accounts, which determining that would be the responsibility of the seller ... then as long as the accounts are viable and not "ghost" accounts, everyone is getting a fair deal.
    If Equipment is part of the deal or being offered additionally, then its fair and current market value would be added to the total overall selling price ... so 10% of the gross sales + fair market value for the equipment.
    Last edited: Jan 10, 2003
  12. gslam88

    gslam88 Senior Member
    Messages: 168

    They are not contract customers, and just plow accounts... so nothing guarantee that they will even move over then what are they worth.....

    5% to maybe 10% for the list at most is its worth....
  13. OffRoadPlow

    OffRoadPlow Senior Member
    Messages: 247

    I would suggest a signed contract of extension of the accounts for the next year. But that is just me, don't even know if it any would go for it. Without that you run a good possibility mentioned above about the service and them not wanting the contracts filled anymore... Not that I doubt the level of service, but with that assurance, I would think it would be worth the %10 so you at least knew you were going hold the accounts for one season.:D
  14. Kent Lawns

    Kent Lawns PlowSite.com Veteran
    Messages: 315

    $55 per push residential? Could be VERY lucrative depanding on spacing.

    From data here, you're making over $300/hour and thus a HIGHLY valuable route.

    The 5%, 10% or even 50% people should NEVER buy a business.

    You pay for NET, not gross revenues.

    ~If you've got a sweet deal, you should get sweet money. If you've got accounts ANYBODY could get, then your list is all but worthless.