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  • #1

    fert business

    I have a guy that has a small fert business for sale.

    It currently grosses about 15k a season(part time business)

    Nets 12K
    has 53 customers

    wants 6k for the route.
    no truck no spray tank.
    just the list

    is this a good price or is this too high???

    Thanks for any input.

    New member
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  • #2
    Thats $226.41 a customer. With NO guarantees. Couldn't you just get 53 customers on your own for less than $12,000? I mean if you gave me $12,000 I'd fly down there and ring doorbells until I had 53 customers for you.
    He's not selling you a business - he's selling you a list of names. And that list is only as good as: 1)his work and reputation, 2)your work, 3)the quality of the names (they could be all PITA customers)
    It sounds like you'd just be "buying a job" not a business.
    Save your money and put it into getting your own customers and developing your own reputation.

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    • #3
      "is this a good price or is this too high???"

      Good price ... if his prices are within reason to others who do apps ... GRAB it!

      Phil

      P.S. Have him introduce you (face to face) or second best (by tele conference call) with each customer make sure they will continue service with you.

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      • #4
        Originally posted by Phil Nilsson
        "is this a good price or is this too high???"

        Good price ... if his prices are within reason to others who do apps ... GRAB it!

        Phil

        P.S. Have him introduce you (face to face) or second best (by tele conference call) with each customer make sure they will continue service with you.
        It's NOT a good price if there are no gaurantees of customer retention. It's a GOOD price for the guy selling his list and if he can get somebody to buy that list. It would cost less to put a BIG ADVERTISEMENT in the area paper for a couple of Thursdays and prospect his own customers.

        A business sale, as I understand it, will usually include equipment and a value that is built into that sale. For instance, a big company like "Chem Lawn" has value because it has assets beyond it's depreciated equipment and as a corporation, the sellable value is built into it's corporation status. But Joe Fertilizer might not have any sellable value because it's a sole proprietor selling fertilizing services.

        I'd look hard at it before plunking $6,000 down on a customer service list and no guarantees.

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        • #5
          It currently grosses about 15k a season(part time business) Nets 12K
          Not a chance!! He is NOT figuring in his labor or he is cooking some serious books. Probly the first.

          Are these clients under contract? Are they even profitable for YOUR operation?

          What kind of Non-compete agreement is he willing to sign?

          If he is willing to get out, why not sell the equipment?

          I have to agree with Stephen here too.

          Expect a 10% loss right off the top. Also, what is the market like? Flooded with feirce competition or just a few "doin' it"?

          For that kind of money, I would try to get my own clients. The price structure would be MINE and the loss risk would probly be less.

          Good Luck!
          Jeeps are like women.....much more fun with their TOPS OFF!



          A society that rewards based on need creates needy citizens. A society that rewards based on ability creates able ones.

          Do you guys think Obama is going to kiss us after he is done with us or is he going to put on his belt and head out the door?

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          • #6
            Find out his:
            Customer property size.
            Product used and cost.
            Drive time involved.
            Equipment used.

            Find this stuff out and go from there.
            “veni, vidi, vici.”

            Comment

            • #7
              If everything is on the up and up with what he is charging and local rates I'd say go for it. But ONLY if:

              1.. he'll sign a noncompete agreement
              2.. he'll agree to take payments over the course of app season according to how many customers remain
              EXAMPLE---start with 10 customers and on 2nd app you only have 9 left
              then you would only have to make payments for 9 remaining and so on

              I think by doing it that way, if he'll be flexible, you really can't lose. You are only going to pay for the customers you have at that time and you will gain a lot of exposure.

              Comment

              • #8
                Thanks for the response!
                After telling him about the post on this website he is now willing to sell it for 4500.00
                I don't think I can really lose it this point. I'll make my money back in a little over 2 applications.
                His prices are current with others in the area. H e will also sign a no compete clause for 3 years.
                He just doesn't want to do it any more.

                Thanks for all of your input.
                This is my new home for knowledge of this industry.
                LL

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