[xxArbUtusxx]

Hi everyone,

I am going to be selling a commercial maint. contract and am wondering...
What is the best way and how much to charge for it? It is my only commercial account as I usually only do residential. I took this account when I was starting out to get a steady income thru the winter. Now I don't need it (Does not pay well and I have to travel along ways).

It is a once a week job that pays about $1,200 a month or $14,000 a year. Sounds good for an account but the overhead for travel (ferry boats, gas, etc.) is not worth my 1 day a week.

I have heard some people mention percentages, such as, 10% of the yearly total all at ounce or maybe 15% on a monthly basis for one year?

Any feedback on how to price it would be greatly appreciated.

John

[AZTLANLC]

If it's a signed contract 10% sounds about right but bear in mind that the person buying it has to see value in it, if that person know about numbers and overhead it will be hard to justify the price.

[Mac]

Ive heard mumblings of GOOD contracts going for as much as 25% gross yearly revenue. 12.5% upfront and 12.5% of whatever remains (when there are mutliple accounts in question) after a given time period (6-8 months here). If I was pushed to pay all upfront, I would pay significantly less than over time. Im still working on one now thats looking to be aprox 17% for maintenance accounts.

[xxArbUtusxx]

Thanks for the responses so far.

This account would be great for somebody that lives closer and doesn't have to pay for travel and spend the amount of time traveling that I do. It is a fairly easy maint. once you are there.

[dsamuelson]

Why not just raise your prices to make it woth your while.

[xxArbUtusxx]

Raising my price on this account will be more then what is average for the area and they have expressed that they do not want to spend any more money on the maint.

I would like to sell it so I can get something out of it rather than raising the price and just losing it.

[TrickyDick]

Is this already signed for next year? Is it multi-year? If it's one year I wouldn't consider paying more than 10% for it. How does the client feel about it? If they are willing to let you pass it on to someone else and trust you to choose that company then maybe there is some value in it for the buyer. If I was the owner and my contractor was quitting I would want to be able to bid it out.