How do I find out which landscapers drive a nursery’s repeat orders?
Sort a full season of invoices by customer and rank the accounts by total and by how often they reorder. Then, with the seller’s agreement, talk to the top landscapers about why they buy there and whether they would stay after a sale.
Ask for sales records for a full season or more, grouped by customer. Rank the landscapers by total purchases and by the number of separate orders. A firm that orders weekly through spring is a different asset from one that places a single large order. Look for dependence: if a few names carry most of the sales, losing one may hurt.
Next, learn why they buy. Is it plant quality, selection, price, delivery, credit terms or the relationship with the owner or a particular salesperson? Customers who buy for the person tend to leave with the person. Customers who buy for the product and service usually stay. The seller’s staff often know the answer, so ask who handles those accounts day to day.
With the seller’s permission, speak to a handful of the main landscapers. Ask what they like, what bothers them and where else they could buy. If a business broker is involved, ask how introductions will be handled. Keep in mind that sharing a sale too early can unsettle customers, so agree on timing first. Watch for open accounts and unpaid invoices, which your accountant can help you read, and ask whether any of them also buy from competing nurseries.
Key takeaways
- Rank customers by total and by frequency of reorders.
- Learn whether they buy for the nursery or for the owner.
- Agree with the seller on when to contact them.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentWhat are financial statements?
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 03Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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