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39 replies to this topic
Rory
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Selling Advice
#1

Hi All,

 

Just wondering if anyone has any experience with selling a round. 

 

  • What worked / didn't work?
  • Whats the best way to determine the value of your round?

 

Just looking for general advice as my dodgy knee and back are degenerating much faster than i expected.

 

Cheers 

;)


Posted 14 May 2018 - 11:19 PM

plucka
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#2

What something is worth is always only want someone is willing to pay, so I would look at what other rounds are selling for and base it on that.  But it will come down to value of equipment and the montly/annual value of your round.


Posted 15 May 2018 - 06:14 AM

crocster
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Selling Advice
#3

My knowledge is out of date but the lawns themselves didn't used to be worth much - I recall about one months summer cut value for residentials with no contract - so it comes back to your total business package and what you're selling IMO - ute/trailer/gear/Registered name/website/mobile number/email address/other advertising/existing contracts/how long you've been in business etc etc

 

Check out Gumtree for other businesses for sale - think indmowing.com.au has a buy/sell section too?


Posted 15 May 2018 - 07:17 AM

Lucky
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#4

My knowledge is out of date but the lawns themselves didn't used to be worth much - I recall about one months summer cut value for residentials with no contract - so it comes back to your total business package and what you're selling IMO - ute/trailer/gear/Registered name/website/mobile number/email address/other advertising/existing contracts/how long you've been in business etc etc

 

Check out Gumtree for other businesses for sale - think indmowing.com.au has a buy/sell section too?

Summer cut? No disrespect Croc but that doesn't sound right. Summer for some of us is the quieter time due to no rain. 


Posted 15 May 2018 - 08:12 AM

crocster
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#5

Summer cut? No disrespect Croc but that doesn't sound right. Summer for some of us is the quieter time due to no rain. 

Yeah, would have been more accurate to say peak season cut whenever that is for you.


Posted 15 May 2018 - 08:15 AM

CGAHS
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#6

get in touch with Dean http://www.indmowing..._bus_rounds.htm


Posted 15 May 2018 - 08:53 AM

Smokey
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#7

Dont really know much on this but was talking to a lawnie at the tip last week and he sold his round to retire.

He sold just the round with clappes out equipment for 7 times what the cut value is worth.

He told me the cut value was $ 10000 so im guessing he sold it for 70k

I thought that was pretty good going considering it was all resi work and no contracts.
Posted 15 May 2018 - 10:59 AM

Lucky
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#8

Dont really know much on this but was talking to a lawnie at the tip last week and he sold his round to retire.

He sold just the round with clappes out equipment for 7 times what the cut value is worth.

He told me the cut value was $ 10000 so im guessing he sold it for 70k

I thought that was pretty good going considering it was all resi work and no contracts.

When you say cut value what time frame or variables do you mean?


Posted 15 May 2018 - 04:48 PM

Lucky
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#9

I'm interested in how Jims and VIP work out what a round is worth. @Colsy?


Posted 15 May 2018 - 04:51 PM

Smokey
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#10

When you say cut value what time frame or variables do you mean?

Im not 100% but my understanding from what max was saying it sounded like a one off cut

Like adding all your clients prices togeather and times it by 7.

Id say most of his jobs would be 4 weekly as weve had bugger all rain and its the end of the seasion for us here.

i should run into max again in the next few days ill find out more and let you know
Posted 15 May 2018 - 05:40 PM

Colsy
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#11

The cut value is the AVERAGE price of every customer you have x the amount of customers you have. So if you have 100 customers and the AVERAGE price is $75 each job then your cut value is $7500.

 

The usual prices paid are normally the cut value x 4 but thats all in the negotiation. People start higher. 

 

I think Jims normally do the cut value x 4, they dont start higher, the price is the price. But they also have a ceiling. Generally a GOOD Jims round is often cheaper than a GOOD Indy, because you also pay ongoing fees.


Posted 20 May 2018 - 11:54 AM

Lucky
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#12

Good info, thanx Colsy


Posted 21 May 2018 - 01:18 PM

Rory
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#13

Hi All,

 

Thanks for your responses. It turns out that my rough "guestimation" on the value of my clients was right on par with Colsy's formula.

Now lets see how we go.

:-?  :-))


Posted 22 May 2018 - 11:30 PM

Lucky
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#14

Hi All,

 

Thanks for your responses. It turns out that my rough "guestimation" on the value of my clients was right on par with Colsy's formula.

Now lets see how we go.

:-?  :-))

GL mate, keep us updated!


Posted 23 May 2018 - 05:00 PM

Colsy
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#15

Another thing you can do that only dawned on me recently is you can split it into bits. Find out where your local guys operate out of and offer them some customers for a small price, rather than waiting for the phone to ring on selling the whole thing.


Posted 25 May 2018 - 05:12 PM

spongy buffalo
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#16

how does one go about selling a few customers?

heard of it mentioned a lot but never the actual process. 


Posted 25 May 2018 - 05:32 PM

Colsy
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Selling Advice
#17

how does one go about selling a few customers?

heard of it mentioned a lot but never the actual process. 

You just use the same formula. Cut value times 4...or more if they are blue chip.

 

I just bought 4 customers off a local Indy who was packing up. He threw in 3 more in the end.

 

Selling small amounts of customers is more of a word of mouth thing, eg bumping into guys at the tip or doing the rounds etc and having conversations.


Posted 25 May 2018 - 06:27 PM

Mattie
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#18

I have sold 5 runs in my local area , it’s become a lot easier to sell runs especially when people see how well you are doing, Remember when you sell work the person buying it wants a lifestyle so make sure your home is beautifully maintained and your customers are also and they are happy to see you.
First impressions are everything .
Take the perspective buyer out with you for a day , show them how quick and easy they can make 500-600 and go home.
I always maintain that domestic work is only work that is temporary , even though I’ve had some domestic lawns for over 20 years , the fact is people die , they move house , they get the grandson to mow , thery change jobs, they lose a job . There is many reasons why domestic customers turnover .
Contract work or strata work on the other hand is a very good saleable commodity , when someone sells the tenancy of the unit may change but the lawny doesn’t .
So with these things in mind and all things being equal , you as the contractor know weather your work is really worth anything , you may have all crappy customers and jobs or they might be all premium over quotes .
I have alway sold work off that I didn’t like and got sick of doing ,so I was fairly negotiable on price .
I would always convince them to buy their own equipment , but you obviously want to get rid of yours.
I always sold enough work so that the person buy could start making money straight up and wouldn’t be whinging to me.
So usually sell between 50-70 jobs and ask 35k with no equipement and negotiate if have to.
The last run I sold was 55 jobs for $16k . The bloke wanted a run and he asked me to give him what $16k could buy as he want to spend so much on machinery.
Because I didn’t want the work and also wanted him to succeed I gave him the whole 55 jobs.
I hope this helps give you some idea, but it’s also hard to sell runs going into winter as you usually won’t have enough jobs to run over to convince him it’s a good buy.
Posted 28 May 2018 - 09:42 AM

plucka
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#19

I've wondered if it's worth trying to selling a few customers on gumtree?  This summer I will have more customers than I can handle, do you just say no to new work, seems a waste.


Posted 29 May 2018 - 06:39 AM

Trevc
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#20

I've wondered if it's worth trying to selling a few customers on gumtree?  This summer I will have more customers than I can handle, do you just say no to new work, seems a waste.


Why not a buy/swap/sell thread on here?
Posted 29 May 2018 - 07:38 AM




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