Selling my accounts, but for how much?

[lawn hopper]

I have 50 residential mowing clients that I'd like to sell because I'll be landscaping only next year. Just want to sell the accounts.
I have fifty accounts and will certainly be able to add at least a dozen next year through past work and referals alone. These will be passed on as well if LCO can provide quality. How much would a reasonable price be for selling the accounts only? I have recorded the accounts services and payments and have detailed records. I also have tracked my revenue, expenses, job times, revenue per man hour, average job time, drive time, support time, production and office hours per month and a host of other numbers.

Support time is aprox 30%
Revenue per hour is $31.80
Hours sold are 1551
number of jobs is 1167
These are 2004 numbers through Dec. 2.:



# Of Jobs Completed 1167.00
Field Time 1551.81 hours
Shop Time 49.82
Curb Time 1069.85
Drive Time 432.14
Support Time 481.96

Unpred. Shop Time 5.00

Revenue 49347.50
Labor 20732.65
Materials/ Dump Fee 0.00
Total Direct Costs 20732.65
Gross 28385.85
Overhead #REF!
Net #REF!

Revenue Per / Hr $31.80
Materials Per / Hr $-
Labor Per / Hr 13.36030184
Direct Per / Hr
Gross Per / Hr 18.29
Overhead Per / Hr #REF!
Net per/ hr #REF!
Curb Rate Per / Hr 46.13

Shop Time % 3.21%
Drive Time % 27.85%
Support Time % 31.06%
Curb Time % 68.94%

So what might be a reasonable price for selling just the accounts? Say I can retain every clients, which I believe is possible. Certainly I can retain a high percentage if the LCO is qualified and can offer a similar service. I extend credit to every customer, most pay off door notice. Other's wait for monthly bill. Some are late, most aren't. All pay thier bill in a reasonable amount of time and I like every one. I always discontinue service for those I don't like.
Note, two customers are much larger than the average customer. One is a church that pays 220 per service (all accounts are serviced weekly in spring until dormant in summer, and weekly when needed again in fall) another is a resident that pays $140 per service.

The route took two men working Tuesday thru Friday, rarely working Sat and only because of rain delays. Route is in a very tight radious of ten miles and all are within three except the two larger accounts, route also has built in time for rain. We averaged seventeen lawns a day at eight hours and hit twenty three several times at less than ten. All customer need a qualified LCO and that's what I've been. I don't think many will be concerned about switching LCO's if I recomend them and the LCO provides a good service.

Thanks
Ryan Odneal
Odneal Lawn Care

[All Lawns & Landcare]

i wouldnt have the slightest clue! but it sounds like that 50 accounts is to little of a # for 2 man crew! maybe there all acre + accounts. i handle 70 accounts right now by myself and i know i could handle up to 110 by my self!

[Stephen M.]

Expand young man, Expand. Why sell? Hire an good employee to mow and do landscaping.

[jrservices]

Expand young man, Expand. Why sell? Hire an good employee to mow and do landscaping.

Makes sense. Plus, you have it to fall back on if landscaping slows.

[clclawn]

hire one good person to run the mowing and you just collect the checks.


One other alternitive is- Find 3-4 good lawn guys that just want to mow, trade them 10-15 accounts, in return you get there landscape work. This will allow you to make more money as the get bigger. Just a thought, probably has many problems with the idea, but work with it, you might a good idea.