Putting a price on your business

[alcpi]

There has been some discussion on pricing a lawn business and I'm interested in knowing exactly how to go about doing this. In particular, the actual lawn accounts. Mr. "indmowing" states approximately 10x the per cut price, I, however thought it was more along the lines of 3-5x per cut price. Any advice?

[indmowing]

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Hi alcpi,
From what we have been hearing what you have said is about right. We were actually refering to Australia with the 10x the cut and in our opinion this is not a fair price (you may have noticed we are not really into selling or buying rounds) and this price really came in when the franchises did.

Independent Lawn Mowing Contractors
Working together to benefit all.
www.indmowing.com.au
Email info@indmowing.com.au

[alcpi]

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Thanks for your input, apparently no one else has a clue.

[Phil Nilsson]

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Mr. Alcpi,
It's not that nobody else has a clue, it's that it's not as cut and dry as some would believe. Fast answers = half baked answers many times ... or "a little bit of knowledge is dangerous" ... this topic is covered in another post.

Phil Nilsson
Nilsson Associates Consultants
Visit Lawn Service & Landscaping Book Store

[indmowing]

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Which post would that be Phil? It gets a little hard to find things in here at time <img src=icon_smile.gif border=0 align=middle> and surely there is a general rule of thumb for selling accounts alone. Alcpi was asking what the price usually is, not how to sell it or when or why? Now we may have a general rule of selling your customers for 10x the cut it is getting harder and harder to get that much anymore, no thanks to us <img src=icon_smile_tongue.gif border=0 align=middle> We can and have built up a full round for less then AU$3,000 and now that we are bigger then ever and our advertising costs are so low it is getting even cheaper to build a client base (this does not include machinery but customers only). We do not agree with the whole 10x cut price but think accounts are worth more like 3x the cut.

Independent Lawn Mowing Contractors
Working together to benefit all.
www.indmowing.com.au
Email info@indmowing.com.au

Edited by - www.indmowing.com.au on Aug 10 2002 9:25:59 PM

[GrassMaster]

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Hello Dean? Ebony? Danielle? <img src=icon_smile.gif border=0 align=middle>

Hey I think You Folks Should Sign Your Name to Your Post, Don't I Remember you Saying that Both You (Dean & Ebony) Post under this Username? Just a Friendly Suggestion. My First Name here was "Admin" & a Member (Scott or Mitchell) Suggested that I give Myself a Name Besides Admin? <img src=icon_smile.gif border=0 align=middle>

<b>I have to Agree about the Accounts Only being Worth about 3 to 4 Times a Cut!</b>

Phil or Someone came up with a Deal One Time Where you Paid So Much Down for the Accounts & Then a Percentage of the Accounts Monthly, Until Paid for.

This Way You only Pay for Accounts You Actually Work & If Some Drop You, Well You DO NOT have to Keep on Paying for Them! Makes Sense to Me!

<b>Have a Nice Day!
GrassMaster - Admin -Click to PM Me or E-Mail Me!
Help this Site - Take a Survey & Visit our Sponsors!</b>

[indmowing]

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What fun would it be if you knew which was which hehe, Yes I keep meaning to sign my name at the bottom <img src=icon_smile.gif border=0 align=middle> a good suggestion. And paying the accounts of is a fantastic idea actually we have done that several times and it worked quite well, so yes a very good idea. And I especially like 'thelawnguys' idea in the next post <img src=icon_smile.gif border=0 align=middle>, gotta love fairness, a rare attribute in business these days!

Well take care and all the best

The hot blooded one lol Ebony

Independent Lawn Mowing Contractors
Working together to benefit all.
www.indmowing.com.au
Email info@indmowing.com.au

Edited by - www.indmowing.com.au on Aug 10 2002 11:59:36 PM

[thelawnguy]

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I just sold my business, 2 cuts value per customer (none on contract) pay only for those who stay with him as long as if they leave it was for something besides his screwup otherwise he still pays for the customer.

[alcpi]

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I tried to buy some accounts from a guy once(not something I usually would do) and offered him 3x each cut and he wanted 6x. I told him no way that was crazy and considered going as high as 4x, but didn't. I'm glad I didn't. Your posts are comforting and I also have always thought that if I did buy accounts, I would just pay that person for the first 3 cuttings(after billing those people) and then they would be mine.

[indmowing]

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we at indmowing are the legends of the lawnmowing business.

Independent Lawn Mowing Contractors
Working together to benefit all.
www.indmowing.com.au
Email info@indmowing.com.au

[Galashiels]

reply

Thats interesting to know, down here in NZ the price seams to vary widely there is one round for sale at the moment at at 22 times the value! Thats the yearly value of the cut, so you cut the lawn for nothing for a year, and pay your own costs, not surprising it has been advertised for two months.
Seen one other for 5 times the cut sold quite quickly.
The Franchise rounds here work out to be about 20 times the cut. But have to pay approx 100$ per week in fees.
All seems expensive when you can hook into the Indmowing system and pay a small amount per lawn "Indmowing the legends of the lawnmowing business"

John

[indmowing]

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we now have 23 american memebers thanks for joining . lets now see if america can link there independent contractors and become a power in there own right . by supporting each other and trusting each other every one can prosper through friendship .

dean

Independent Lawn Mowing Contractors
Working together to benefit all.
www.indmowing.com.au
Email info@indmowing.com.au

[mitchelbear]

I read some article about the subject. This is awesome guidance on it and I believe it. The best way to find out if you’re on the right track is to bring in advisers. When you buy that risky small-cap fund, you expect a higher rate of return in exchange for putting your capital in harm's way.

[MASTERMOWER]

Wow, nearly a decade between posts. :alien::alien::alien: