Advise on purchase of high-end accts.

[jrservices]

Have been given an option to purchase a small group of accts in an area I have really been wanting to break into. These are in a resort area, all high-end accts, props in the 500.000-1,000,000 range or better. There are only 6-7 accts, some are high maintenance. A lot of shrubs, bushes, areas cut up into areas that can only be cut by 21'' mowers, some can be cut by 48'' mowers. These are props where for the owners , this is their 2nd & 3rd property. For these accts, revenue would be right around 20,000 + each year. Money does not appear to be an issue with the owners, one of them is involved with ESPN, in what way, I do not know. I have seen some of the current landscapers books & pricing, looks like the pricing is good, maybe even higher than mine. He interacts closely with the clientele & they are aware someone else may be taking over. If the deal goes thru, I also would be meeting with the owners, to go over the routine & build a good relationship with them. I would be looking at around $4,000-5,000 to purchase them without his equipment. Any input on this would be appreciated......John

[boazcat]

Sounds great to me. Make it happen.

[jrservices]

Anyone else ? Talked to the guy selling the accts again last night, looks like if I want them, they're mine. Gotta go over specifics & negotiate exact #s still.

[Mike J]

Why is he wanting to sell them?

[jrservices]

Why is he wanting to sell them?

He's moving. He got a job offer in the Carolinas he couldn't refuse, so he's moving once the accts are sold.

[Laurel companies]

high end accounts

Get a cancellation clause in the puchase agreement that allows you to set aside a % for cancels, and set off payment for those accounts you puchase, who do not take your service.
best of luck.

[1Chavez]

As long as you have the ability to do them, go for it. Be aware that everything must be kept perfect and that if they see something that needs to be done you better be able to fix it immediately. These people are paying for a high end service and they expect nothing less. If you have to give up a day to walk their property and chat, be sure you have someone else who can do you regular routine.. The cancellation clause as Laurel Co's mentioned is not a bad idea, but good luck.
-Rich

[Mike J]

Like Rich said if your able to handle them go for it. How many people did he have working the accounts?

[jrservices]

First off, many thanks to everyone that replied with their quality advice. Mike, it was mainly the owner & one helper taking care of the props. One of the accts is very heavy with shrubbery & bushes, large amts of trimming, & keeping everything in shape. Three of the others have smaller amts of meticulous, labor intensive, site work like shrubs & bushes. Rich is correct in that they are paying for high-end service & I am confident that I can do this. I have two part time helpers & should not have a problem with reliable help. These people are rarely there, so they should expect everything to be in order when they are there, which is mainly weekends. Most are waterfront areas & the views are absolutely stunning. If all goes thru, I will post pics.

[jrservices]

Update on purchase. Purchase has gone thru, I have acquired 6 quality accts, five of them lakefront. Rich, you may be familiar or have heard of the resort area of Bolton Landing & Lake George area. I have touched base with some of the new owners, very nice people. I feel very fortunate. The opportunity for extra services is unbelievable. i have the oppertunity to gross 5-6 times what I paid for the accts in a year. I had a very positive feeling after going over the accts with the original landscaper. One of his original clients offered him a position in the Carolinas at an offer he could not refuse. One of these props has new owners, changed hands for 2 mil. One of the other accts is valued 3-5 mil. The chance to pick up addl work with addl well heeled clients in the area is very good as well. When time permits, I will post pics.

[ohreallythanks]

congrats....sounds like a winner!

[PNA]

Keep us updated on how it goes.
PNA

[ahowelljr]

I am looking for landscapers in need of pine straw. I will start gathering straw this week and will be selling cheaper than most. I am located in South Georgia. Anyone looking for cheaper straw let me know. Thanks

[jrservices]

Time to bump to the top. Purchase of accts was around $5,000.00. By the end of fall cleanup, will have grossed $15-$20 G from these accts. Very pleased with the outcome, will also be sending out fert contracts to 4 of them. Work on these accts include : All mowing, weed control, fertilization, mulch as needed, pruning & shrub trimming, weeding, spring & fall clean-up, pretty much everything. Pretty much write my own paycheck at a few of these props, whatever I see that needs to be done, we do it. Worked out very well for us, as this has really been a break-out year for the business. Has been a very financially rewarding year, looking forward to next year.

[1Chavez]

Nice job. Accounts like that are great.
-Rich