I'll sell you my fert. accounts, never mind!

[turfman]

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This is what I just dealt with.

I was in touch with a larger Landscape company in my area at the beginning of the year. They are moving toward big landscape jobs and chemical apps are just something they do for the heck of it. Mowing is only done to keep $$ coming in. Anyway, he told me to contact him at the end of the season to discuss the matter. (I mow but want to get out of it and grow as a application company). I figured purchasing accounts would be a great idea. He also like the idea of offering them to me vs. a TruGreen or the like in an effort to help a smaller operation.

So I sent him an email about a week or two ago, haven't heard from him. So I called this morning and touched base with him. Right off the bat, he said he was entertaining the thought of selling to a fert company vs. someone like me to avoid maintenance competition.

I said ok, and we left it at that. Should I continue to pursue the opportunity and offer to sign a no-compete clause and assure him that by purchasing the accounts, my goal is to get out of mowing.

[GrassMaster]

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I said ok, and we left it at that. Should I continue to pursue the opportunity and offer to sign a no-compete clause and assure him that by purchasing the accounts, my goal is to get out of mowing.

It might be hard to sell him on that since it looks like he's already made up his mind...

Send him a mile longer & include some of the info you posted in here, explaining to him that your not interested in Mowing accounts & that why you're wanting to buy his spray accounts.

Of course offer a no compete agreement will add icing to the cake also. Good Luck to You!

[OLD HAT]

I personally would have a prob. with a no compete document. I would want to have something for "just in case" instead I would have to try advertising as the little guy that cares about you, and if you ever have a problem then call the owner type stuff.

[Seascape]

Compete in what? Apps? I thought he was getting out of the app business?

I surely wouldnt sign on anything else,,,,, in fact nothing.

He could be selling all his crap to you ,,, and reorganizing his route.

[turfman]

No, not competing in apps. I curently "do everything" (only b/c I have to) but apps are my main focus. His statement to me was he would rather not sell to a full service company "like his" in fear of competition. It would be like giving your competition an edge.

I sent him a second email explaining my situation. The more apps I make, the less mulch I toss, grass I mow, and trimmer line I replace. These three make me less likely to compete as a full service LCO. I also made it clear that the funds used for purchasing the fert accounts can easily be invested in larger mowing equipment making a a more efficient "full service" outfit, but that is not the company's goal!

I also hit home by saying I am only trying to grow my business, much like he did 15 years ago when he purchased accounts from another LCO right here in town.

His reply email stated that he appreciated the email and comments. The issue is will be on the back burner until late December. Keep in touch.

He is definetely not selling he his crap accounts. This guy is getting out of the small stuff. For example, when I go bid a clean-up for $300, he is out bidding on installs for nothing less than 15k. I've watched him do it! He is growing in the direction of tri-axles' and excavators. Pushing a spreader dosen't appeal to him. Plus, he is the only certified applicator on board.

[Seascape]

His statement to me was he would rather not sell to a full service company "like his" in fear of competition. It would be like giving your competition an edge.

I see his point now that you've rephrased it. He basically understands that his plan wont unfold overnight and he will still be competing somewhat with guys like you in some arenas forever probally. He still hasnt figured out how to justify turning his back on some of the more high profit work other than install. He also understands your plan wont unfold over night either ,,,,,,, he knows that you guys may still be tripping over each other occasionally and that there is no gaurantee either of your plans will pan out fully.


That being said,,,,,,,,,,,, I wonder if this is a good deal for either party? Its certainly not for you if you have to sign a non compete. By doing so you are basically saying "ok now i gotta be a left handed fighter because i just tied 1 hand behind my back" ,,,,,,,,,, on the other hand you are waiving regulation and allowing him to use lighter gloves. Make sense?

Let me ask,,,,,,,,,,,,, how many accounts are we talking? 80? 800? Has he revealed total sq ftg?

[hardboiled]

Sounds to me like it could be a win/win situation, but being less experienced in the area all I can add is to do some praying between now and end of year and I am sure it will work out for you. Sounds like you've done enough checking things out so far. Keep in touch with him in a non intrusive way, holiday greetings, send him a referral, etc. How about instead of discussing not competing, discuss handing each other jobs or working together occassionally on jobs?
Whatever happens, come back and let us know if and when it goes down.

[Stephen M.]

I like what Hardboiled just said. Over the past couple of years, i've discovered that it pays to "play well" w/ the competition. I refer stuff I don't want to do or have time for to them, and they return the favor. Its a win/win for everybody.

I'm one of the few licensed applicators in the county, and I get referals all the time from the competition who don't even want to "touch the stuff".

There is bound to be overlap, but its going to be smaller as time goes on. I think that he is like alot of guys who told me over the years "I'm getting out of mowing". Well, they still mow because they have equipment that still runs; they just aren't replacing it when it goes to the point of deminishing returns.

Don't sign a "no compete", that's for people who work for you.

[turfman]

Let me ask,,,,,,,,,,,,, how many accounts are we talking? 80? 800? Has he revealed total sq ftg?

Unfortunatley I don't know "exactly". I have a feeling that it is around 50-70 accounts, sqft unknown.

I do know they are high end accounts simply b/c that is his market.

I have referred work to him this year and he has done the same. He received a Thank You call each time wheather I landed the account or not!

[Seascape]

Unfortunatley I don't know "exactly". I have a feeling that it is around 50-70 accounts, sqft unknown.

I do know they are high end accounts simply b/c that is his market.

I have referred work to him this year and he has done the same. He received a Thank You call each time wheather I landed the account or not!

Theres no way id sign anything but a check for this guy on 70 accounts. This is a simple business transaction ,,,,,,,, and thats it.

I think this guy is way off base here.

***** Also,,, dont get defensive about this next suggestion. Watch this guy well and protect your best interests in all your dealings. Dont ever let him convince you that he will never stab you or mistake your whiteness for weakness. Just keep that all etched in the back of your head.

[MASTERMOWER]

Obviously adding 50+ chem accounts would help you immensely, but IMO, this guy is more talk and less game.

To what extent do you currently advertise your chem services? Seems to me if you truely want to move away from mowing and more onto chem work, you ought to be stiffening up your advertising efforts rather than trusting a fellow landscaper to throw the work your way.

[turfman]

Obviously adding 50+ chem accounts would help you immensely, but IMO, this guy is more talk and less game.

To what extent do you currently advertise your chem services? Seems to me if you truely want to move away from mowing and more onto chem work, you ought to be stiffening up your advertising efforts rather than trusting a fellow landscaper to throw the work your way.

I do what I can with the $$ I have in terms of advertisement. I do however, have more app. clients than mow clients.

Trust me boss, I don't wait for anyone!

[clclawn]

how do you have money to buy high end fert accounts, but not to advertise.

On another note, we sub out a ton of fert each year. We have 2 companies we sub to. One is a fert only biz. Our companies work great together. The other is full service & it gets difficult some times. We are in the process of moving everything to the fert company. Although the owner of the full service company is a truely good freind there are too many conflicts and possible conficts. If I were him i would not sell to you either.

[turfman]

Good points made here but you must have skimmed over the part where I state I have no intentions of operating a full service company. My goal is to make applications, aerate and the like.

As for available funding, I would much rather invest in customers that already want/have a fertility program in place vs. advertising to people that don't. Just makes $ense in my eyes.

[clclawn]

My point had nothing to do with the plans to get out of full service, its the confict untill you do get out of it. I was just trying to give you an understanding from his prospective.