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Buying customer base pitfalls??

Hi all just wondered of a general view of buying a existing customer base the chap is retiring he has generally run the business down, has 12 customers to sell me turning over 10k a year some of them are a bit lower than we charge but was thinking it might be value. ???Was thinking I was spending £700 on advertising a year and he wants 1k for the client base any views and thoughts please.

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  • 1k for 10k doesn't sound a bad deal.   I'd make absolutely sure that the customers are happy to have you doing the work when this chap retires....... might be worth arranging to visit each of them with the present gardener to introduce yourself and getting an idea if it looks like it will work out.

    • the other guy would probably want the grand up front first before you met the clients...sounds a bit dear to me for some small underpriced garden maintenance jobs.. last month i put a card in my 2 local shops for £2 each and scored a garden job worth at least £3K p.a. and another one estimated £1.5K p.a. to add to my portfolio

      • Can see the clients before payment
    • It's interesting there is one job which is well underpriced which is worth 2,600 so realistically it leaves 7,400 as I see it I can also see what Billypop says but that doesn't always happen picking up clients that easy, might offer him £500
    • Forgot to say there is some kit as well for the 1k price old hayter mower one cheap 18 inch Italian mower caster something like that never heard of it. Strimmer etc it's not a bad deal to be honest
      • in that case go for it chris, maybe on the under priced job use the change of gardener as an opportunity to ratchet up the price to the client a bit, but are still in a good position to retain it due to the good will...if a few of the jobs fall by the way side, so be it...maybe you work a bit quicker than the retiring guy also

      • PRO

        Castel? Same company as mountfield stiga etc. But I think they're domestic mowers only?

  • PRO

    Sounds a fair price to me, providing they transfer over to you and stay with you.

    So, if possible I would visit each beforehand with the existing gardener and do a handover, plus do a staged payment. 60% upfront, and 40% final payment 3 months later pro-rata based on how many of the customers you still have. Some may drop you, but equally, you may drop them.

    The 2 stage thing may be a push for the existing chap, but if you don't ask you don't get kind of thing. Or only pay around £600-£700 and it amounts to the same thing.

    • Hi Andrew
      What about the hrly rate being less??
      Customers don't like price hikes
  • PRO

    If the revenue for a particular customer is not right, and cannot be made so, then don't buy them.

    Customers will accept a price rise, if it's justified by extra capability, equipment, skill/qualification levels etc.

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