Buying Existing Accounts - Cleaning Talk - Professional Cleaning and Restoration Forum
 
Thread Tools Display Modes
post #1 of Old 05-21-2008, 03:37 PM Thread Starter
 
Join Date: May 2008
Posts: 1
Buying Existing Accounts

I have a chance to buy 18 existing residential accounts... How do I value them? I am told they are all solid customers (I know, who wouldn't say that) who have been with the company for over a year.

They average out to about $90 a home... Do I give him a percentage of the sales for the first year? Example, give him 10% of the gross amount for a year (this would be paid on a montly basis), then nothing after that... or give him a dollar amount for each one. What if all 18 cancel within the first month?

Anyone with a good way to value them or have bought accounts in the past.

I appreciate your help.
Newtocleaning is offline  
Sponsored Links
Advertisement
 
post #2 of Old 05-21-2008, 08:25 PM
Moderator
 
t.peterson's Avatar
 
Join Date: Aug 2006
Location: California
Posts: 1,083
Welcome to the board newtocleaning.

To answer your question I would have to offer my personal opinion and that is that there really is no reason to have to purchase accounts in the residential sector. Why? you ask........ Resi's are a fickle bunch who don't necessarily want to be sold or traded off to another. Once they get wind of the change many of them will jump ship quickly. Therefore if you purchase these accounts from someone else you can and very well may end up paying for nothing as you already suspect.

Too, what if these accounts were not estimated correctly? You could then be trapped into keeping the clients costs lower than you need them to be in order to efficiently run your business. New ownership and immediate rate increases will surely aid in the exiting of some of the customers

Why not instead work on getting your own accounts? With those you will be able to keep 100% of the fees charged & you will be able to set the rates to exactly what you need in order to make sure that your company profits
t.peterson is offline  
post #3 of Old 05-25-2008, 02:59 PM
 
Join Date: Feb 2008
Posts: 50
Great advice, T. There is no reason to purchase these accounts. You have no guarantees whatsoever that they won't leave, and you'll be out any money that you've paid the seller.

Have you started your own marketing venture yet. Once you get one client in the residential sector, it's very easy to get others. Kind of like the old saying, "if you build it, they will come". Good luck to you, and whatever you decide I hope it all works out.
ClnUpWoman is offline  
Sponsored Links
Advertisement
 
post #4 of Old 05-16-2019, 01:00 AM
Junior Member
 
Join Date: May 2019
Posts: 23
good idea
John Macafee is offline  
post #5 of Old 05-16-2019, 01:02 AM
Junior Member
 
Join Date: May 2019
Posts: 23
wish you best of luck
John Macafee is offline  
Reply

Quick Reply
Message:
Options

Register Now



In order to be able to post messages on the Cleaning Talk - Professional Cleaning and Restoration Forum forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.

User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.

Password:


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:
OR

Log-in










Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page
Display Modes
Linear Mode Linear Mode



Similar Threads
Thread Thread Starter Forum Replies Last Post
beware of buying a cleaning franchise 10bballer Commercial Cleaning 15 05-27-2019 08:47 AM
Fast Food accounts Imtheprez Commercial Cleaning 1 05-16-2019 01:00 AM
Whats the best way to land big accounts 10bballer Commercial Cleaning 7 05-16-2019 12:59 AM

Posting Rules  
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

 
For the best viewing experience please update your browser to Google Chrome