Commercial Routes in Dallas

Looking to purchase commercial routes here in Dallas. If any of you guys get tired of servicing your customers let me know. My buy out would be around 10-30% of one years gross receipts for a really well established route.
Robb Hueston
Window Wizards
Dallas, TX
469-682-4777
[email protected]

just my two cents. I don’t think many would sell their route for so little.

I’ve heard of routes being sold from anywhere from 4 month to 9 month value.

Robb

Do you require contracts to be in place?

What’s your definition of “value?”

I find the offer interesting too.

I would never part with my commercial clients for less than 8 months gross.

Right now, it would take 12-14 months gross to get me even considering it.

Gross = last 12 months of revenue / 12 for gross monthly average

I don’t know. I just mean that that’s what I’ve seen routes go for. Selling for 4-9 months. In the amount that a route is worth, I think one of the most important factors is how it’s priced, I would be willing to pay a premium for well-priced routes, low priced routes are worth very little.

Factors to consider when making an offer for commercial route:

Pricing
Density
Length of Time customers have been with company
Are there contracts in place?
are they all one company, or are they many different compnaies (eg are all the eggs in one basket)

Just my two cents.

Mike,

If you see 4 to 9 months gross… That would be 30 to 75%.

If you guys knew the dallas market you would understand that the storefront market is almost worthless here. You can clean the best windows wipe every edge and frame charging only .50 per plate per side and the manager is ready to jump ship to the next guys that comes along with a bucket and a .45 PP price. At the last count the Paul at Local Dallas window cleaning supply store has sold to over 500 guys that are opperating “One Man Shows” in the DFW metroplex. I just recently purchased 4 different routes at about 30% each.

I have purchased residitial for 10 -30% 5 different times with gross annual revenue near 30,000 each.

Why do you buy so many accounts? do you not like to advertise?

I like your logo by the way!

“Many” is a subjective term.

Can’t one purchase accounts AND advertise?

You may find this site interesting.

http://www.windowcleaningroundforsale.co.uk

In the UK rounds (or routes) typically sell for 3 or 4 months gross takings.

If the work is really good it has been known to sell for 10 months value.

I would imagine the principles involved in evaluating goodwill would be the same wherever you are.

I wonder if there is a site like that in North America?

Some dude (pbj) on NWCD kept hyping this website: http://www.tradeyouraccounts.com

I’ve never checked it out.

I called those window cleaning round guys…

They said they would come over here no problem… But you have to pay for there place to stay …fuel … etc…

If they were over here I would def use them.

If anyone is looking to get rid of any accounts in South Sandiego or the riverside area in California feel free to email me

I firmly believe in the theory that [B]its 5 times as expensive to generate new business accounts as it is to keep current business accounts.[/B]

I would recommend starting a new thread (see this thread’s Subject line.)

I am not sure about the whole 10-30% thing either. The market on the far north side of Dallas (Plano, Frisco, Allen, McKinney, Denton, Lewisville) area is competetive, but not worthless. I don’t do anything for less than $2.50/pane. I hav had customers for two years and have only been let go by a handful. None of them dumped me for another cleaner. All either moved, went out of business, or simply cut back expenses.

Infact, I had three customers this month tell me about other guys comging around and cutting my prices. They told the guy that they weren’t interested. Apparently (Larry, you’ll like this) the quality of my work, outweighs the value of a cheap deal from the other guys. I have no contracts in place. Just verbal (non-binding) agreements with all storefront customers.

Exactly as I imagined, Bert!

Larry,
I thought you might like that considering how much you champion using locally owned/operated services over that of cheaper franchised or international companies, even if the local guy is more expensive.

I agree with you on this issue. I try my best to buy locally. Unforutnately sometimes I can’t avoid it. But I try.

I smell a fish.