Buyer should determine his current cost to get a new customer. This cost is the MAX he should pay for an active customer. Now look at the seller's customer list. Multiply # customers tuned in 2006 by 50% Multiply # customers tuned in 2005 by 20% Multiply # customers tuned in 2004 by 5% Throw out everyone older than that. This will be an estimate of your customer base if you are buying a good business from a good tuner, who has maintained his list. Now, suppose this adds up to 400 customers and it costs you 20.00 to get a new customer- multiply 400 times $20 for $8,000 and this is the MOST you should pay for the list. Now deduct from that penalties for a non-computerized list, assuming existing advertising, or phone numbers, list not well maintained, discounted work (store work is worth almost zero). Evaluate the business income is it dropping or growing? Look at expenses, are they understated to increase income? What is owners reputation? After deducting the fair value of any negatives from the $8,000 price, work out a payment method for the value of the business. I ************************************** See what's free at http://www.aol.com. -------------- next part -------------- An HTML attachment was scrubbed... URL: https://www.moypiano.com/ptg/pianotech.php/attachments/20070602/b2058519/attachment.html
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